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

Quick Facts

• Based on national averages for auto insurance, Allstate offers significantly cheaper rates than Hanover
• Allstate has more affordable prices for policyholders who drive fewer than 12,000 miles annually
• Hanover has less expensive premiums in AR, CT, IL, MA, MI, NH, NJ, and NY

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

So, you're considering switching to a new insurance policy. With so many ads from all sorts of companies offering big savings, you're probably wondering exactly how much you might be able to save.

You might be considering Allstate or Hanover as your top options, but between the two, which carrier has cheaper rates for insurance?

As you can see, Allstate is quite a bit cheaper than Hanover, with premiums averaging $199 a month compared to $853 with Hanover when looking at the national average rates for auto insurance.

That being said, Allstate may not be the cheapest or best option for every driver out there. Car insurance carriers vary their prices depending on things like how old you are, where you live, how good your credit score is, how clean your driving record is, and tons of other factors, so rates could change drastically from person to person.

So, if you want to find out which of Allstate or Hanover is really the best for you, keep reading to see average premiums for each company broken down by lots of different rate factors.

Allstate vs. Hanover: Average Car Insurance Rates by State

Allstate and Hanover compete against each other in seven states, with Allstate offering more affordable rates to the average driver in all of them. If you live in Massachusetts, Hanover is the less expensive of the two companies when looking at the overall average prices. Allstate is the cheaper option in Arkansas, Connecticut, Illinois, New Hampshire, New Jersey, and New York.

That being said, there's a lot more that goes into your insurance bill than just where you call home. Continue reading to learn more about how other variables will affect your rates.

Which is the Best Company For Young Drivers?

Teen drivers will almost always have the most expensive auto insurance rates of any other group of drivers out there on the road. It's usually because teen drivers are statistically much more likely to cause collisions and other accidents that will result in an insurance claim.

But still, even with seemingly sky-high premiums, teen drivers can still find ways to save money. For example, 18-year-old drivers pay an average of over 75% less per month by choosing Allstate over Hanover.

Even so, with both carriers, you'll see your prices decrease significantly by the time drivers turn 25. For example, average rates for Allstate policyholders drop almost 65% and Hanover's premiums reduce more than 60% over that time.

Which is the Best Company for Retired Drivers?

When it comes to car insurance, patience and experience pay off, with drivers around retirement age paying some of the lowest prices you can find.

When looking at Allstate and Hanover specifically, which carrier is best for retired drivers? Allstate gets the edge here, with average rates coming in at around $152 monthly compared to Hanover's $613.

Which is the Best Company for Married Drivers?

You may not be aware, but insurance prices tend to be more expensive for those who are single than they are for married drivers. That's normally because married couples tend to own and insure several vehicles, which can often earn you a discount.

For single drivers, the difference in average premiums between these two companies is significant, with Allstate prices coming in at about a quarter of Hanover's. The advantage for married policyholders with Allstate is also obvious, where drivers save over 75% a month.

Allstate or Hanover: Average Rates by Gender

Men are statistically more likely than women to get into a collision or get pulled over for speeding. That means when it comes to auto insurance men will generally end up paying a little more.

Men typically pay around $10 per month more than women with Allstate, and about $60 with Hanover.

Looking at overall affordability, Allstate comes out on top for both men and women, with average rates $680 less for men and $629 cheaper for women.

Allstate 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 so many different coverages and terms that it can make it pretty confusing to find the right policy for you.

But the most common policies that drivers look at fall into two categories -- liability coverage (which provides bodily injury and property damage coverage for other drivers and passengers if you cause an accident) and full coverage (which includes two additional coverages -- collision and comprehensive -- in addition to what you get with liability coverage).

Looking specifically at state minimum limits for liability insurance, Allstate has the significant edge, with average monthly premiums coming in at $108. If you want a full coverage policy with the same state minimum limits, Allstate again has the edge, with policies averaging around $289 a month to Hanover's 1196.

Is Allstate or Hanover Better for Drivers with Spotty Records?

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

It's no secret secret that at-fault collisions and speeding tickets lead to higher prices, but which company -- Allstate or Hanover -- has the most affordable premiums for drivers with less-than-perfect records?

Which Company is Best for Drivers with Speeding Tickets?

Policyholders who use Allstate for their auto insurance can usually expect their monthly bill to go up about 15% after getting a speeding ticket. Hanover policyholders can expect a bit more drastic of an increase of around 26%.

However, Allstate has less expensive rates for drivers in both categories, offering prices that are $461 and $655 more affordable, respectively, compared to Hanover Insurance.

Which Company is Best for Drivers After an Accident?

Allstate drivers who get in a collision can expect to see their premiums increase by over 30%, while those who have insurance through Hanover will see about a 35% increase.

At the end of the day, drivers who use Allstate end up with the cheaper prices after an accident, with average rates coming in at $229 compared to Hanover Insurance's $943.

Which Company is Best for Drivers with a DUI?

If you get a DUI charge on your record, it's probably going to cost you more than a simple ticket or even an accident. On average, Hanover will raise your prices around 39% after a DUI, while Allstate's average premiums rise by more than 30%.

But if you end up with a DUI charge and are looking for more affordable rates, Allstate tends to be less expensive for the average driver, with monthly premiums coming in at about $227 to Hanover's 1013.

How does Credit Score Impact Allstate and Hanover Rates?

Did you know many car insurance carriers take into account your credit score when determining prices? Certain states and companies do not allow for credit score to be used as a car insurance factor, but it will come into play for quite a few policyholders.

Insurance carriers argue that those with good credit scores are more likely to pay their bills on time every month, which reduces the risk involved on their end, while the opposite is true for those with bad credit.

So, which carrier offers the best premiums for drivers with poor, average, or good credit?

Which Company is Best for Drivers with Good Credit?

If you have great credit, Allstate will typically reward you the most. For policyholders with "excellent" credit scores, Allstate comes in nearly 34.09 cheaper. Drivers with "good" credit scores normally save around 67% with Allstate compared to average rates from Hanover.

Which Company is Best for Drivers with Bad Credit?

Allstate typically offers lower prices than Hanover when it comes to drivers with less-than-perfect credit. Drivers with "fair" credit pay about 76% per month less with Allstate compared to Hanover, and those with "poor" scores generally save an average of around 86% a month.

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

How much you drive can have a substantial impact on how much auto insurance companies will charge for coverage. Typically, the more milage you drive, the more you can expect to pay for car insurance.

For both remote workers and those taking short commutes, Allstate offers more affordable premiums than Hanover. Hanover's average rates for drivers with 6,000 annual miles come in over 75% more expensive than Allstate. Those who drive 12,000 miles each year can expect to pay more than 75% more with Hanover over Allstate.

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

We've already mentioned how your home state can play a role in how much you pay for auto insurance, but the type of area you live in can have a pretty big impact as well. Usually, those who live in rural areas will pay less than drivers in urban areas due to the small number of cars that are on the roads where they live.

Allstate tends to offer the most affordable prices for drivers in every type of area, no matter if it's urban, suburban, or rural.

For policyholders in urban ZIP codes, Allstate's average rates are about $744 less than Hanover Insurance. People who live in suburban areas pay around $643 less with Allstate compared to Hanover. Those in rural areas can expect to save about $576 with Allstate compared to Hanover.

Allstate vs. Hanover Discounts

No matter why you might be in the market for a new insurance policy, you're always going to want to save as much money as you can. That's where car insurance discounts comes into play.

But with what seems like a million different discounts out there, it can be challenging to nail down the carrier that has the most discounts for your unique driver profile and to find all the discounts you can take advantage of.

Luckily, we did the hard work for you and broke down all of the different discounts offered by both Allstate and Hanover so that you can easily see which company offers the most discounts and, therefore, the largest savings.

Allstate blows Hanover away when it comes to the sheer amount of discounts available, offering 40 different discounts to Hanover's 21.

There are a couple discounts both carriers offer, but Allstate also offers discounts for agency transfer, alert driving, COVID-19 relief, and more.

On the other hand, Hanover has a few proprietary discounts of their own for things like education discounts, experienced operator discounts, group discounts, and more.

Final Thoughts: Is Allstate or Hanover Best for You?

So, we've broken down the average premiums for many of the factors auto insurance companies look at, and we've shown you all the discounts each company offers. That's all well and good, but when it comes down to it, is Allstate or Hanover the right one for you and your specific needs?

Allstate might be best for you if....

• You will be the only person on the car insurance policy.
• Your credit score is high.
• You drive fewer than 12,000 miles yearly.

Hanover might be best for you if...

• You like the personalized touch of a small, regional carrier.

Hopefully, this guide has ben a valuable resource as you compare Allstate and Hanover and that it aids in making a more informed decision about your insurance.

At the end of the day, the sure-fire way to make sure you're getting the best deal on your car insurance policy is to compare quotes from multiple carriers, not just Allstate and Hanover. Luckily, sites like Compare.com do all the hard work for you. Simply enter your ZIP codes below and get free quotes from dozens of top auto insurance companies in your area, all in just a few minutes.

Allstate vs. Hanover FAQs

Is Allstate or Hanover cheaper?

Allstate is the less expensive of the two carriers when looking at national average rates, with policies averaging $199 a month with Allstate and $853 for Hanover. That being said, that doesn't mean Allstate will be the lowest company for every driver, since there are multiple different variables that are considered when it comes to your insurance payment.

Who is better, Allstate or Hanover?

Unfortunately, the answer truly is "it depends.". Neither carrier is necessarily "better" for each policyholder -- it all boils down to your unique car insurance profile.

Why do Allstate and Hanover offer me different rates?

Auto insurance companies use several different factors when calculating the prices they charge. Things such as your driving record, gender, age, where you call home, and sometimes even things like your credit score can all be taken into consideration. Both Allstate and Hanover calculate rates differently, so it's likely they'll offer different premiums. The best way to determine which company is the most affordable for you is by comparing personalized quotes from several different carriers.

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

The only way to find the 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, Compare.com does all the hard work for you. Just enter your information once and you'll get quotes from dozens of your local top car insurance carriers for free. With those, you can guarantee you're getting the best price. And maybe you'll find that the best company for you isn't Allstate 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.