AAA vs. Hanover: Which Company is the Best Fit for You?

Quick Facts

• In general, AAA offers significantly more affordable prices than Hanover
• AAA offers more affordable premiums for policyholders who drive fewer than 6,000 miles annually
• AAA offers cheaper average rates for drivers who have a speeding ticket on their driving record

AAA or Hanover: Which Company has the Cheapest Car Insurance?

Are you considering a new insurance policy? You've probably seen commercials and billboards from companies offering hefty savings, but exactly how much money can you save by switching?

You've maybe even narrowed it down to AAA or Hanover as your top options, but which company has less expensive premiums for insurance?

As you can see, AAA has average rates that are around 65% a month cheaper than those from Hanover when looking at the national average rates for auto insurance.

That being said, that doesn't mean AAA will necessarily be less expensive than Hanover for every single driver. Insurance carriers vary their prices depending on things like where you live, how good your credit score is, how old you are, how clean your driving record is, and all sorts of other factors, so premiums could vary drastically from person to person.

Luckily, we've broken down average rates from both AAA and Hanover by a bunch of different rate factors, so read on to find out which company is the best for you.

AAA vs. Hanover: Average Car Insurance Rates by State

AAA and Hanover only compete against each other in two states, with AAA offering more affordable prices to the average driver in all of them. Illinois has the most noticable difference, where AAA rates are 1120 less expensive than car insurance prices at Hanover.

That being said, there's a lot more that goes into your auto insurance bill than just where you call home. Read on to learn more.

Which is the Best Company For Young Drivers?

You might already know that teen drivers typically pay a lot more for car insurance than any group on the road. It's usually because teen drivers are statistically much more likely to get into an accident that results in an auto insurance claim, making them much riskier to insure.

But still, even with seemingly sky-high premiums, teen drivers can still find ways to save money. Just look at the table above -- where 18-year-old drivers who have AAA for their auto insurance pay over 65% less than those who use Hanover.

Even so, both companies will offer you dramatically lower prices once you turn 25. For example, average rates for AAA policyholders lower almost 60% and Hanover's premiums reduce more than 60% over that time.

Which is the Best Company for Retired Drivers?

When it comes to insurance, patience and experience pay off, with drivers around retirement age paying some of the lowest rates out there.

So, which carrier offers the best premiums to retired drivers? AAA gets the edge here, with average prices coming in at about $238 per month compared to Hanover's $613.

Which is the Best Company for Married Drivers?

Did you know that car insurance rates are normally cheaper for married drivers than they are for single drivers? This usually boils down to married couples having several vehicles on their policy -- something quite a few insurance carriers will reward with discounts.

For single policyholders, the difference in average prices between these two companies is significant, with AAA premiums coming in at around a third of Hanover's. For married policyholders, the advantage is clear again - AAA has the edge when it comes to average rates.

AAA or Hanover: Average Rates by Gender

Did you know women generally pay less for auto insurance than men? That's because men are more likely to get tickets and get into accidents, which raises the chances of filing a claim with insurance.

With AAA, women normally pay about $35 per month less than men, but with Hanover, the difference is closer to $60 a month.

When it comes to the cheapest premiums for each gender, AAA comes out on top for both men and women, with average prices $552 less for men and $526 cheaper for women.

AAA vs. Hanover: Compare State Minimum vs. Full Coverage Rates

*State minimum value indicates liability-only policies at each state's minimum bodily injury and property damage (BI/PD) limits

**Full coverage indicates state minimum BI/PD limits with collision and comprehensive coverages added to policy.

It's no secret that car insurance can be pretty complicated. There are several different coverages that account for multiple different things. Some protect you and your car, while others only provide coverage for other people's property and health if you cause a collision.

But most policies end up falling into two different types of coverage -- liability coverage (which covers the other party's injuries and property damage if you cause an accident) and full coverage (which includes two additional coverages -- collision and comprehensive -- alongside liability).

Looking specifically at state minimum liability limits, AAA has the significant edge, with average monthly rates coming in at $169. If you want a full coverage policy with the same state minimum limits, AAA again has the edge, with policies averaging around $459 per month to Hanover's 1196.

Is AAA or Hanover Better for Drivers with Spotty Records?

It's no secret -- drivers with good records end up getting the best deals on their auto insurance. But that's not to say you can't save money if you don't have the best driving record, either.

You'll probably end up paying more with speeding tickets and collisions on your record, but which of these two carriers offers the most affordable premiums to drivers with spotty records?

Which Company is Best for Drivers with Speeding Tickets?

Policyholders who use AAA for their insurance can typically expect their monthly bill to go up about 29% after getting a speeding ticket. Hanover policyholders can expect a less drastic increase of around 26%.

However, AAA is generally the more affordable option for drivers both with clean records and with a ticket, offering prices that are 65% and 64% cheaper, respectively, compared to Hanover Insurance.

Which Company is Best for Drivers After an Accident?

Both companies will raise rates pretty significantly if you get into an at-fault collision with Hanover increasing by about 35%. AAA has a less extreme increase, but you can still expect to pay more than 35% more than you were prior to your first accident.

At the end of the day, the more affordable prices come from AAA, with average premiums coming in at $339 compared to Hanover Insurance's $943.

Which Company is Best for Drivers with a DUI?

If you get a DUI charge, you can expect some pretty significant increases in your monthly car insurance bill -- usually a lot more than a collision or speeding ticket. Hanover drivers usually see a 39% increase in their auto insurance rates after a DUI charge, while AAA will typically climb premiums by around 47%.

But if you end up with a DUI charge and are looking for more affordable prices, AAA tends to be less expensive for the average driver, with monthly premiums coming in at about $403 to Hanover's 1013.

How does Credit Score Impact AAA and Hanover Rates?

Did you know many insurance carriers take your credit score into account when determining premiums? Certain states and companies do not allow for credit score to be used as an insurance factor, but it might come into play for a lot of drivers.

The reasoning car insurance carriers use is that policyholders with good credit will be more likely to pay their bills on time; so they'll reward them with cheaper rates, while those with poor credit will normally be forced to pay more.

So, which company offers the cheapest prices for drivers with good, average, or poor credit?

Which Company is Best for Drivers with Good Credit?

If you have a great credit score, AAA will usually reward you the most. For policyholders with "excellent" credit scores, AAA comes in over 15.91 cheaper. Drivers with "good" credit scores generally save around 53% with AAA compared to average rates from Hanover.

Which Company is Best for Drivers with Bad Credit?

AAA typically offers lower prices than Hanover when it comes to drivers with a below average credit score. Drivers with "fair" credit pay about 64% a month less with AAA compared to Hanover, and those with "poor" scores normally save an average of around 72% a month.

Is AAA or Hanover Better for Drivers who Work from Home or Have Short Commutes?

How much you drive can have a considerable impact on your monthly insurance cost. That's because the fewer miles you drive, the less likely you are to be in an accident and file an insurance claim.

AAA tends to be the less expensive option for both remote workers and those taking short commutes. AAA's average premiums for drivers with 6,000 annual miles come in about $545 more affordable than Hanover. Those who drive 12,000 miles yearly can expect to pay around $533 less with AAA over Hanover.

AAA or Hanover: Compare Rates for Urban, Suburban, and Rural Drivers

Where you live can play a sizable role in how much you pay for auto insurance. Generally, drivers who live in less densely populated rural areas will pay quite a bit less than urban policyholders because of the small number of cars that are on the roads where they live.

When comparing these two companies side-by-side, AAA typically comes out as the lowest option for drivers in all areas, regardless of if they're urban, suburban, or rural.

Those in rural areas can expect to save about $494 with AAA compared to Hanover. People who live in suburban areas pay around $541 less with AAA compared to Hanover. For drivers in urban ZIP codes, AAA Insurance's average rates are about $582 less than Hanover Insurance.

AAA vs. Hanover Discounts

No matter why you might be in the market for a new car insurance policy, you're always going to want to save as much money as you can, and the best way to do that is by utilizing as many auto insurance discounts as possible.

But with what seems like a million different discounts out there, it can be hard to nail down the company that has the most discounts for your unique driver profile and to find all the discounts you're eligible for.

Luckily, we did the hard work for you and compared all of the different discounts offered by AAA and Hanover so that you can easily see which company offers the most discounts and see which ones you might be able to take advantage of.

AAA blows Hanover away when it comes to the sheer amount of discounts available, offering 33 different discounts to Hanover's 21.

There are a couple discounts both carriers offer, but AAA also offers discounts for AAA, academic, COVID-19 relief, and more.

On the other hand, Hanover has a few proprietary discounts of their own for things like ABS discounts, annual mileage discounts, DRL discounts, and more.

Final Thoughts: Is AAA or Hanover Best for You?

You've seen the effect certain variables have on your insurance and the different discounts companies offer. That's all well and good, but at the end of the day, which carrier is the best fit for you?

AAA might be best for you if....

• Your driving record includes a DUI charge.
• You want the most robust protection via a "full coverage" policy.
• You want to save money while purchasing auto insurance for a teenager.

Hanover might be best for you if...

• You have a more unique driver profile than those we mentioned above.

Hopefully, this guide has ben a valuable resource as you compare AAA and Hanover and that you can now make a more informed decision when it comes to your car insurance.

At the end of the day, the best way to make sure you're getting the best deal on your insurance policy is to compare quotes from several carriers, not just AAA and Hanover. Luckily, Compare.com makes it easy for you to do just that. Just enter your ZIP code below and get free quotes from dozens of the top car insurance companies in your area, all in just a few minutes.

AAA vs. Hanover FAQs

Is AAA or Hanover cheaper?

AAA is the cheaper of the two carriers when looking at national average premiums, with policies averaging $314 per month with AAA and $853 for Hanover. That being said, that doesn't mean AAA will be the most affordable company for every driver, since there are a variety of different factors that come into play when it comes to your insurance payment.

Who is better, AAA or Hanover?

Unfortunately, the real answer is "it depends.". No one carrier is necessarily "better" for each policyholder -- it all comes down to what your unique auto insurance profile looks like.

Why do AAA and Hanover offer me different rates?

Insurance companies use several different variables when calculating the rates they charge. Things like age, your driving record, gender, where you park your vehicle, and sometimes even things like your credit score can all come into play. Both AAA and Hanover calculate premiums using different formulas, so it's likely they'll offer different prices. The best way to determine which company is the cheapest for you is by comparing personalized quotes from many different carriers.

How do I know if AAA or Hanover is right for me?

The only way to find the car insurance carrier that's right for you is by getting quotes from a handful of companies and finding the one best suited for your individual budget. Luckily, sites like Compare.com make it easy for you to do just that. Just enter your ZIP code and you'll get quotes from dozens of your local top auto insurance carriers for free. That way, you can guarantee you're getting the lowest price. And maybe you'll find that the best company for you isn't AAA or Hanover at all, but another you hadn't even thought of!

Methodology

All of the data referenced in this article has been gathered in collaboration with Quadrant Information Services. We analyzed more than 2.5 million rows of carrier-reported data to calculate the average rates referenced above. All rates are based on an insurance profile of a single-vehicle policy for a driver that owns a 2016 Honda Accord. For more information on how we calculate rates, please reference our data methodology.