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

Quick Facts

• In general, Allstate offers significantly cheaper prices than Preferred Mutual
• Allstate offers more affordable average rates for policyholders who may not have much of a commute
• Preferred Mutual offers more affordable premiums for residents in Massachusetts and New York

Allstate vs. Preferred Mutual: Which Company has the Cheapest Car Insurance?

So, you're thinking about switching your auto insurance. You've probably seen commercials and billboards from companies offering large discounts, but exactly how much money can you save by switching?

You might have narrowed it down to Allstate or Preferred Mutual for your next policy, but between the two, which carrier will offer you less expensive prices?

Looking at nationwide averages, Allstate has average rates that are about 65% per month cheaper than those from Preferred Mutual.

But that doesn't necessarily mean Allstate will be the more affordable option for each driver. After all, insurance companies can offer drastically different rates to each driver depending on rating factors like where you call home, your age, your credit score, or even your driving record (among other things), so rates could vary drastically from person to person.

Wanting to know if Allstate or Preferred Mutual is really the right carrier for you? Keep on reading to see how average prices can change based on all of the factors we've mentioned above.

Allstate or Preferred Mutual: Average Car Insurance Rates by State

Allstate and Preferred Mutual only compete against each other in two states, with Preferred Mutual offering cheaper rates to the average driver in all of them. If you live in New York, Allstate is the less expensive of the two carriers when looking at the overall average premiums. Preferred Mutual is the more affordable option in Massachusetts.

But there's more to calculating auto insurance rates than just where you call home. Read on to find out more.

Which is the Best Company For Young Drivers?

Young drivers -- especially teens -- generally pay a lot for insurance compared to older drivers. Usually, that's because young, inexperienced drivers are statistically much more likely to get into an accident that results in an insurance claim, making them much riskier to insure.

That being said, that doesn't mean teen drivers can't still save money on their auto insurance. As you can see above, teens who use Allstate save more than $500 a month compared to those who use Preferred Mutual. It's worth noting that Allstate offers car insurance in 47 different states compared to Preferred Mutual's two, which can skew the average premiums a bit, but the difference here is still considerable.

Even so, with both companies, you'll see your prices reduce significantly by the time you turn 25. For example, average premiums for Allstate policyholders decrease nearly 65% and Preferred Mutual's prices drop over 55% over that time.

Which is the Best Company for Retired Drivers?

Drivers around retirement age normally enjoy some of the cheapest auto insurance rates you can find. After all, they've likely been driving for quite some time, which typically reduces their chances of accidents and other infractions that can increase prices.

But who has the best rates for retired drivers between Allstate and Preferred Mutual? Allstate gets the edge, with premiums for drivers 65 and older more than 60% less expensive than the national average for Preferred Mutual.

Which is the Best Company for Married Drivers?

Those who are single tend to get offered slightly more expensive insurance prices than married drivers. This usually boils down to married couples having more than one car on their policy -- something lots of car insurance carriers will reward with discounts.

When it comes to relationship status, Allstate is the clear winner for single policyholders, with rates around $384 per month more affordable than Preferred Mutual, on average. For married policyholders, the advantage is clear again - Allstate has the edge when it comes to average premiums.

Allstate vs. Preferred Mutual: Average Rates by Gender

Because men are more likely to get tickets and get into accidents, they raise the chances of filing a claim with insurance. Therefore, men tend to get higher rates than women.

Men normally pay about 4% more a month than women with Allstate, and around 3% more with Preferred Mutual.

Looking at overall affordability, Allstate comes out as the lowest option for both genders, with average rates $347 less for men and $340 cheaper for women.

Allstate or Preferred Mutual: 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 auto insurance can be a complicated subject for most people. There are many different coverages that account for lots of different things. Some protect you and your vehicle, while others only provide coverage for other people's property and health if you cause an accident.

However, most policies that many drivers look at fall into two categories -- liability only (that covers property damage and bodily injury for other drivers and passengers if you cause a collision) and full coverage (which includes two additional coverages -- comprehensive and collision -- in addition to liability).

If you're looking for state minimum limits for liability insurance, Allstate generally offers significantly cheaper prices of $108 compared to Preferred Mutual's $234. When it comes to full coverage policies with similar limits, Allstate again has the edge, with policies about $500 per month more affordable than Preferred Mutual, on average.

Is Allstate or Preferred Mutual Better for Drivers with Spotty Records?

It's no big secret that drivers who are accident-free get better deals on their insurance. But even if you have a spotty record, you can still find plenty of ways to save some cash on your monthly bill.

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

Which Company is Best for Drivers with Speeding Tickets?

Allstate policyholders can expect their premiums to go up an average of $27 a month if they get a ticket, while Preferred Mutual usually raises rates around $3 per month, on average.

Even so, Allstate is typically the less expensive option for drivers both with a speeding ticket and with a clean record, offering premiums that are 60% and 53% cheaper, respectively, compared to Preferred Mutual.

Which Company is Best for Drivers After an Accident?

Allstate drivers who get in an accident can expect to see their prices climb by over 30%, while those who have insurance through Preferred Mutual will see about a 20% increase.

Overall, drivers who use Allstate end up with the cheaper prices after an accident, with monthly rates averaging $229 compared to Preferred Mutual's $486.

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 a collision. For example, Preferred Mutual increases average premiums by over $500 a month -- that's over a 55% increase.

Allstate has the overall lowest prices for drivers with a DUI on their records at $227 a month, but it's worth noting that Allstate's average rates come from 47 states compared to just two for Preferred Mutual, so the data may be skewed slightly.

How does Credit Score Impact Allstate and Preferred Mutual Rates?

Did you know that many car insurance companies take into account your credit score when calculating rates? Certain states and carriers do not allow for credit score to be used as a rating factor, but it does affect several policyholders out there.

Auto insurance companies argue that those with poor credit scores are less likely to pay their bills on time every month, which increases the risk involved on their end, while the opposite is true for those with good 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, you'll usually find a better deal with Allstate. Policyholders with "excellent" credit can save more than 70% compared to Preferred Mutual, and those with "good" scores can also expect to see savings -- around $397 or 70% more affordable each month.

Which Company is Best for Drivers with Bad Credit?

Allstate typically offers lower prices than Preferred Mutual when it comes to drivers with bad credit. Drivers with "fair" credit pay about $449 per month less with Allstate compared to Preferred Mutual, and those with "poor" scores normally save an average of around $556 monthly.

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

Did you know that the amount of time you spend in your car have a sizable impact on your monthly rates? Generally, the more miles you put on your vehicle each year, the more you can expect to pay for insurance.

For both drivers who put 6,000 miles on their vehicles annually, as well as those who average twice that figure, Allstate offers less expensive prices than Preferred Mutual. Preferred Mutual's average rates for drivers with 6,000 annual miles come in just under $350 more expensive than Allstate. Those who drive 12,000 miles yearly can expect to pay nearly $350 more with Preferred Mutual over Allstate.

Allstate vs. Preferred Mutual: 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 car insurance, but the type of area you live in can have a pretty big impact as well. Typically, if you live in an urban area with more cars on the road, you'll pay a little more for insurance, while the opposite is true for people in rural areas.

Allstate tends to offer the cheapest premiums for drivers in all areas, regardless of if they're urban, suburban, or rural.

Drivers in rural ZIP codes see the most affordable prices from both carriers, but Allstate comes out on top with average premiums about $174 per month. Allstate also has cheaper average prices for policyholders in urban and suburban ZIP codes -- a 75% and 58% a month respective difference when compared to Preferred Mutual drivers in similar areas.

Allstate vs. Preferred Mutual Discounts

Regardless of 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 possible, and the best way to do that is by utilizing as many auto insurance discounts as you can.

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

Below, we've compared all of the different discounts offered by Allstate and Preferred Mutual so that you can see which company can save you the most money each month.

Allstate blows Preferred Mutual away when it comes to the sheer amount of discounts available, offering 40 different discounts to Preferred Mutual's 14.

Both companies offer quite a few of the same discounts -- like annual mileage discounts, discounts for being a defensive driver, DRL discounts, and mature driver discounts -- but Allstate also offers advance quote discounts, agency transfer discounts, alert driving discounts, and more that Preferred Mutual does not.

On the flip side, Preferred Mutual has a couple unique discounts of its own -- group discounts and new business discounts.

Final Thoughts: Is Allstate or Preferred Mutual Best for You?

So, we've broken down the average rates for many of the factors car insurance carriers look at, and walked through the different discounts each company offers, too. But, at the end of the day, is Allstate or Preferred Mutual the best carrier for you and your specific needs?

Allstate might be best for you if....

• Your driving record contains an at-fault accident.
• You're looking for discounts -- Allstate has the most.
• You're married and plan to have both of your names on the vehicle's auto insurance policy.

Preferred Mutual might be best for you if...

• You're looking for the best rates in MA and NY.

We hope this guide has ben a valuable resource as you compare Allstate and Preferred Mutual and that it aids in making a more informed decision about your insurance.

At the end of the day, the best way to make sure you're getting the best deal on your auto insurance policy is to compare quotes from several companies, not just Allstate and Preferred Mutual. Luckily, Compare.com does all the hard work for you. Simply enter your ZIP code below and get free quotes from dozens of the top insurance carriers in your area, all in just a few minutes.

Allstate vs. Preferred Mutual FAQs

Is Allstate or Preferred Mutual cheaper?

Looking just at the national average prices, Allstate is the more affordable of the two companies, offering average rates of $199 per month compared to $542 for Preferred Mutual. But Allstate won't necessarily be the cheapest carrier for everyone, since there are a variety of different variables (things like age, driving record, gender, etc.) that play a role in how much you pay.

Who is better, Allstate or Preferred Mutual?

Sadly, the answer truly is "it depends.". Neither company is "better" for everyone -- it all comes down to what your unique car insurance profile looks like.

Why do Allstate and Preferred Mutual offer me different rates?

Insurance carriers take a look at many different factors when determining the rates they charge policyholders. Variables like age, gender, your driving record, where your home is, and sometimes even things like your credit score can all come into play. Both Allstate and Preferred Mutual use different formulas, so each one will most likely offer different premiums. The only real way to see which carrier is the lowest for you is by comparing personalized quotes from several different companies.

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

The only way to find the car insurance company that's right for you is by getting quotes from multiple carriers and finding the one best suited for your individual budget. Luckily, Compare.com makes it easy for you to do just that. Just enter your ZIP code and you'll get free quotes from dozens of the best auto insurance companies in your area. With those, you can guarantee you're getting the best price. And who knows, the best carrier for you might not be Allstate or Preferred Mutual at all!

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.