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

Quick Facts

• In general, American Family offers significantly more affordable rates than Hanover
• American Family has cheaper prices for drivers who have less-than-stellar credit
• American Family offers less expensive average rates for drivers who have received a ticket within the last few years

American Family vs. Hanover: Which Company has the Cheapest Car Insurance?

Are you considering a new insurance policy? After all, you've seen ads from all sorts of companies offering huge discounts. But exactly how much can you save by switching?

You've maybe even narrowed your search down to American Family or Hanover as your top options, but which carrier will save you the most?

Looking at the national average rates for both companies, Hanover is quite a bit more expensive than American Family, with premiums averaging $853 per month compared to just $140 with American Family.

Even so, that doesn't mean American Family will necessarily be cheaper than Hanover for each driver. Car insurance carriers use tons of complex algorithms to calculate prices, so depending on where you live or how good your credit score is (among a bunch of other factors), you could see wildly different premiums from the ones above.

So, if you want to find out which of American Family or Hanover is really the best for you, keep reading to see average rates for each company broken down by a variety of different rate factors.

American Family or Hanover: Average Car Insurance Rates by State

American Family and Hanover only compete against each other in one states, with American Family offering more affordable prices to the average driver in all of them. Illinois has the most noticable difference, where American Family premiums are over 70% less expensive than insurance rates at Hanover.

That being said, there are plenty of other factors that go into your auto insurance payment than just where you live. Continue reading to see how other factors will affect your rates.

Which is the Best Company For Young Drivers?

Teen drivers will almost always have the most expensive car insurance prices of any group on the road. Generally, that's because young, inexperienced 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 more than $500 less a month by choosing American Family over Hanover.

However, both companies will offer you dramatically lower rates once you turn 25. For example, average prices for American Family policyholders lower nearly $200 and Hanover's rates decrease over $500 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 premiums out there.

When looking at American Family and Hanover specifically, which carrier is best for retired drivers? American Family gets the edge, with prices for drivers 65 and older $506 cheaper than the national average for Hanover.

Which is the Best Company for Married Drivers?

You may not be aware, but auto insurance rates tend to be more expensive for single drivers than they are for married drivers. That's typically because married couples tend to own and insure more than one car, which can often earn you a discount.

When it comes to relationship status, American Family is the clear winner for single policyholders, with premiums about $834 per month more affordable than Hanover, on average. The advantage is also clear for married policyholders - American Family offers the most affordable average prices.

American Family vs. Hanover: Average Rates by Gender

Because men are more likely to get tickets and get into collisions, they are more likely to file a claim with insurance. Therefore, insurance carriers will tend to offer men more expensive rates.

Generally, men see premiums around $5 a month higher with American Family, and about $60 more with Hanover.

Looking at the data for each company specifically, American Family offers the cheapest average prices for both men and women. On average, male drivers save about $740 per month and women save around $685 with American Family compared to the average Hanover policyholder.

American Family or 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.

Car insurance can be a complicated subject for most people. There are so many different coverages and limits that it can make it pretty confusing to find the right policy.

But most policies end up falling into two different types of coverage -- liability only (that covers property damage and bodily injury for other drivers and passengers if you cause an accident) and full coverage (which usually refers to having comprehensive and collision coverages in addition to what you get with liability coverage).

If you're looking for state minimum liability limits, American Family normally offers significantly less expensive rates of $96 compared to Hanover's $509. When it comes to full coverage policies with similar limits, American Family again has the edge, with policies about $500 a month cheaper than Hanover, on average.

Is American Family or Hanover Better for Drivers with Spotty Records?

You've probably seen plenty of commercials from insurance companies offering great prices for good drivers, but that doesn't mean people with less-than-perfect driving records can't save money, too.

It's no secret secret that tickets and accidents lead to higher premiums, but which carrier -- American Family or Hanover -- has the lowest prices for drivers with spotty records?

Which Company is Best for Drivers with Speeding Tickets?

American Family policyholders can expect their premiums to go up an average of $29 per month if they get a ticket, while Hanover generally raises rates around $221 a month, on average.

That being said, American Family is typically the more affordable option for both drivers who have a recent speeding ticket and those with clean records. Drivers with a clean record can save about $499 per month and drivers with a ticket can save around $691 a month with American Family Insurance.

Which Company is Best for Drivers After an Accident?

Both carriers will increase premiums pretty significantly if you get into an at-fault accident with Hanover raising by just under $350. American Family has a less extreme rise, but you can still expect to pay $20 more than you were prior to your first collision.

Overall, drivers who use American Family end up with the cheaper prices after an accident, with monthly prices averaging $138 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 American Family will normally climb premiums by about 25%.

If you have a DUI on your record and are looking for more affordable rates, American Family tends to be the much less expensive option with average prices of $158 a month compared to 1013 from Hanover.

How does Credit Score Impact American Family and Hanover Rates?

Did you know that many insurance companies take your credit score into account when calculating rates? This isn't always the case (for example, Massachusetts and California are two states that ban the practice entirely), but it does affect many drivers out there.

Car insurance carriers argue that someone with bad credit is less likely to pay their bills on time, which makes them riskier to insure. Because of that, policyholders with bad credit will often be forced to pay more.

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

Which Company is Best for Drivers with Good Credit?

Which Company is Best for Drivers with Bad Credit?

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

The amount of time you spend behind the wheel of your car plays a big role in how much auto insurance companies will charge for coverage. Usually, the more miles you drive, the more you can expect to pay for coverage.

American Family tends to be the cheaper option for both drivers who put 6,000 miles on their vehicles annually, as well as those who average twice that figure. American Family average prices for drivers with 6,000 annual miles come in over $500 less expensive than Hanover. Those who drive 12,000 miles each year can expect to pay more than $500 less with American Family over Hanover.

American Family vs. Hanover: Compare Rates for Urban, Suburban, and Rural Drivers

Where you call home can play a considerable role in how much you pay for insurance. Typically, those who live in urban areas will pay more than policyholders in rural areas due to the number of vehicles that are on the roads in those areas.

When comparing these two carriers side-by-side, American Family generally comes out as the cheapest option for drivers in all types of areas, no matter if they're urban, suburban, or rural.

Drivers in rural ZIP codes see the most affordable rates from both companies, but American Family comes out on top with average prices around $121 per month. American Family also has more affordable average premiums for policyholders in urban and suburban ZIP codes -- a 83% and 84% per month respective difference when compared to Hanover drivers in similar areas.

American Family vs. Hanover 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. That's where auto insurance discounts comes into play.

But where do you even start? With so many discounts out there, it may seem difficult to find all the of the ones you're eligible for.

In the table below, we've taken a look at all of the different discounts American Family and Hanover offer their customers so that you can easily see which company offers the most discounts and see which ones you might be able to take advantage of.

You can find offers for anti-theft discounts, distant student discounts, DRL discounts, and group discounts from both carriers.

Final Thoughts: Is American Family or Hanover Best for You?

So, you've seen how different variables can affect your insurance rates. We've shown you all the discounts each company offers, too. But, at the end of the day, is American Family or Hanover the best fit for you?

American Family might be best for you if....

• You have an at-fault accident on your record.
• You're looking for more protection with "full coverage" car insurance.
• You drive fewer than 12,000 miles yearly.

Hanover might be best for you if...

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

We hope this guide helps you get a better idea of the difference between American Family and Hanover and that you can now make a more informed decision when it comes to 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 multiple companies, not just American Family and Hanover. Luckily, sites like Compare.com make it easy for you to do just that. Simply enter your ZIP codes below and get free quotes from dozens of top insurance carriers in your area, all in just a few minutes.

American Family vs. Hanover FAQs

Is American Family or Hanover cheaper?

Looking just at the national average prices, American Family is the less expensive of the two companies, offering average rates of $140 a month compared to $853 for Hanover. Even so, American Family won't necessarily be the lowest carrier for every driver, since there are several different factors that come into play when it comes to your auto insurance bill.

Who is better, American Family or Hanover?

Sadly, the answer truly is "it depends.". No one company is necessarily "better" for each driver -- it all comes down to what your unique car insurance profile looks like.

Why do American Family and Hanover offer me different rates?

Auto insurance carriers take a look at quite a few different variables when determining the premiums they charge policyholders. Things like age, gender, where your home is, your driving record, and sometimes even things like your credit score can all be taken into consideration. Both American Family and Hanover calculate rates using different formulas, so each one will most likely offer different prices. The only real way to see which carrier is the most affordable for you is by comparing personalized quotes from many different companies.

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

The only way to find the insurance company that's right for you is by getting quotes from several carriers and finding the one best suited for your individual budget. Luckily, sites like Compare.com do all the hard work for you. Just enter your ZIP code and you'll get free quotes from dozens of the best car insurance companies in your area. That way, you can guarantee you're getting the best premium. And who knows, the best carrier for you might not be American Family or Hanover 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.