Auto Club Group Insurance Company is lowering the pricing factor for Wisconsin auto policies purchased digitally through aaa.com, while adding seven new “External Distribution” categories to its rating plan.
The digital channel factor falls from 0.90 to 0.83, a 7.8% reduction in that rating component. Housebook and contact center factors remain at 0.90, standard agent channels at 1.00, and independent agents at 1.04. The change does not translate directly into a 7.8% reduction in total policy premium.
The insurer bases the digital reduction on lower expenses. Its companywide 2025 other underwriting expense ratios were 18.4% for digital, compared with 21.1% for other direct business, 31.7% for captive agents, 31.2% for entrepreneurial agents and 35.4% for independent agents. These figures are not Wisconsin-specific.
“Digital policies have notably lower costs than both Housebook and Contact Center bound policies.”
Previously, digital, housebook and contact center policies shared the same factor. The insurer says separating digital pricing reflects its lower costs and supports customers quoting and binding online without speaking to an agent.
The seven new external distribution categories carry factors ranging from 0.919 to 0.948, below standard agent pricing but above digital and other direct channels. The filing says these channels are being established for Auto Club Group but does not identify partners or explain how business will be assigned among the categories.
Fixed expense channel factors remain at 1.00 across all channels. The insurer says these factors reflect retention, which it does not expect to differ by channel.
The filing was marked filed on June 22, with changes effective October 1, 2026, for new business and November 1 for renewals. The reported overall rate impact rounds to 0.0% across a book of 29,401 policyholders and $25.8 million in written premium.
Bottom Line: AAA is giving online purchases a larger pricing advantage based on lower expenses, while creating separate pricing categories for new external distribution.
