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

Quick Facts

• Based on national averages for insurance, American Select offers significantly less expensive premiums than Hanover
• American Select offers more affordable prices for policyholders who have a short commute
• Hanover may help you save more money -- they offer more discounts than American Select Insurance Company

American Select or Hanover: Which Company has the Cheapest Car Insurance?

So, you're thinking about switching to a new insurance policy. You've probably seen commercials and billboards from companies offering huge savings, but exactly how much money can you save by switching?

You might have narrowed it down to American Select or Hanover as potential options, but which carrier has cheaper rates for car insurance?

As you can see, American Select is quite a bit cheaper than Hanover, with premiums averaging $170 a month compared to $853 with Hanover when looking at the national average rates for insurance.

Even so, American Select may not be the lowest or best option for each driver out there. Car insurance carriers use tons of complex algorithms to determine prices, so depending on how old you are or where you live (among a lot of other factors), you could see wildly different premiums from the ones above.

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

American Select vs. Hanover: Average Car Insurance Rates by State

American Select and Hanover only compete against each other in one states, with American Select offering more affordable prices to the average driver in all of them. Michigan has the most noticable difference, where American Select rates are $951 cheaper than auto insurance premiums at Hanover.

But there's more to calculating insurance prices than just where you call home. Continue reading to see how other variables will affect your rates.

Which is the Best Company For Young Drivers?

Teen drivers will almost always have the most expensive car insurance premiums of any other group of drivers. Normally, that's because teen drivers are statistically much more likely to get into an accident that results in a car insurance claim, making them much riskier to insure.

But still, even with seemingly sky-high prices, teen drivers can still find ways to save money. As you can see above, teens who use American Select save over 85% per month compared to those who use Hanover.

That being said, with both companies, you'll see your rates drop significantly by the time you turn 25. For example, average prices for American Select policyholders decrease around $150 and Hanover's rates lower about $500 over that time.

Which is the Best Company for Retired Drivers?

Drivers around retirement age generally enjoy some of the most affordable auto insurance premiums you'll ever see. After all, they've likely been driving for quite some time, which typically lowers their chances of collisions and other infractions that can raise prices.

When looking at American Select and Hanover specifically, which company is best for retired drivers? American Select gets the edge, with rates for drivers 65 and older $477 more affordable than the national average for Hanover.

Which is the Best Company for Married Drivers?

Did you know that car insurance premiums are usually more expensive for single drivers than they are for married policyholders? That's typically because married drivers tend to own and insure more than one vehicle, which can often earn you a discount.

For those who are single, the difference in average rates between these two carriers is significant, with American Select premiums coming in at around a quarter of Hanover's. For married couples, the advantage is clear again - American Select has the edge when it comes to average prices.

American Select or Hanover: Average Rates by Gender

Men are statistically more likely than women to get speeding tickets and get into accidents. That means when it comes to auto insurance men will usually end up paying a little more.

Women normally pay about $1 a month less than men with American Select, and around $60 less with Hanover.

Looking at the data for each carrier specifically, American Select offers the lowest average premiums for both men and women, with average rates $712 less for men and $653 cheaper for women.

American Select 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.

Insurance can be a complicated subject for most people. There are a variety of different coverages that account for lots of 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.

However, most policies that drivers look at fall into two categories -- liability coverage (that covers property damage and bodily injury for other drivers and passengers if you cause an accident) and full coverage (which generally refers to having collision and comprehensive coverages alongside liability coverage).

Looking specifically at state minimum liability limits, American Select has the significant edge, with average monthly prices coming in at $90. If you want a full coverage policy with the same state minimum limits, American Select again has the edge, with policies averaging about $251 per month to Hanover's 1196.

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

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

Speeding tickets and accidents will most likely raise your premiums, but is American Select or Hanover less expensive for drivers with spotty records?

Which Company is Best for Drivers with Speeding Tickets?

Policyholders who use American Select for their car insurance can typically expect their monthly bill to go up around 21% after getting a speeding ticket. Hanover policyholders can expect a bit more drastic of an increase of about 26%.

But American Select has more affordable prices for drivers in both categories, offering rates that are 81% and 82% cheaper, respectively, compared to Hanover Insurance.

Which Company is Best for Drivers After an Accident?

After an accident, drivers who have their insurance through American Select can expect to see around an $41 -- or about 26% -- rise in their car insurance premiums. Drivers who use Hanover for their auto insurance will see a monthly bill around $326 (or 35%) more expensive after reporting a collision to their insurance company.

At the end of the day, American Select offers the cheapest prices for drivers with an at-fault collision on their records, with average premiums coming in at $158 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 -- normally a lot more than an accident or ticket. For example, Hanover increases average rates by nearly $400 a month -- that's nearly a 40% increase.

But if you end up with a DUI charge and are looking for more affordable prices, American Select tends to be less expensive for the average driver, with monthly premiums coming in at about $258 to Hanover's 1013.

How does Credit Score Impact American Select and Hanover Rates?

Did you know many auto insurance carriers take into account your credit score when determining rates? Certain states and companies do not allow for credit score to be used as an insurance factor, but it does affect quite a few drivers out there.

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

Looking at American Select and Hanover specifically, which company has the best premiums for policyholders at different credit levels?

Which Company is Best for Drivers with Good Credit?

Which Company is Best for Drivers with Bad Credit?

Is American Select 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. That's because the fewer miles you drive, the less likely you are to be in a collision and file an insurance claim.

As you can see in the table above, annual mileage doesn't have much of an impact on how much American Select charges. However, there's a small difference in monthly prices for Hanover, with drivers who put 6,000 miles on their car each year paying around $1 less every month compared to those who drive 12,000 miles yearly. Still, for drivers in both categories, American Select is the cheaper carrier.

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

Where you park your vehicle can have a pretty big impact on your monthly car insurance cost. Generally, 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.

American Select tends to offer the cheapest rates for drivers in every type of area, no matter if it's urban, suburban, or rural.

For drivers in urban ZIP codes, American Select Insurance Company's average prices are about 79% less than Hanover Insurance. People who live in suburban areas pay around 82% less with American Select compared to Hanover. Those in rural areas can expect to save about 79% with American Select compared to Hanover.

American Select 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 challenging to find all the ones you can take advantage of or to nail down the carrier that has the most discounts for your unique driver profile.

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

Looking at the total number of discounts, Hanover has a slight advantage when it comes to total number of discounts. American Select offers a grand total of 20 discounts, while Hanover has 21.

A couple of those are overlapping for things like advance quote discounts, discounts for being a defensive driver, distant student discounts, and group discounts. Hanover also offers discounts for annual mileage, DRL, education, and more.

On the other hand, American Select has a few proprietary discounts of their own for things like account relationship discounts, agency transfer discounts, companion auto discounts, and more.

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

You've seen the effect certain factors have on your insurance and the different discounts carriers offer. That's all well and good, but at the end of the day, which company is the best company for you and your specific profile and needs?

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

• You're worried about the impact your credit score will have on your rates.
• You live in an suburban area.
• You're married and plan to have both of your names on the vehicle's auto insurance policy.

Hanover might be best for you if...

• You care about discounts (Hanover offers the most).

Hopefully, this guide has ben a valuable resource as you compare American Select and Hanover 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 car insurance policy is to compare quotes from multiple companies, not just American Select and Hanover. Luckily, Compare.com makes it easy for you to do just that. Just enter your ZIP code below and get multiple quotes from some of the best insurance carriers in your area, all for free.

American Select vs. Hanover FAQs

Is American Select or Hanover cheaper?

American Select is the more affordable of the two companies when looking at national average premiums, with policies averaging $170 per month with American Select and $853 for Hanover. However, that doesn't mean American Select will be the lowest carrier for everyone, since there are a bunch of different variables that come into play when it comes to your car insurance bill.

Who is better, American Select or Hanover?

Unfortunately, the real answer is "it depends.". One company is not necessarily "better" for everyone -- it all comes down to what your unique auto insurance profile looks like.

Why do American Select and Hanover offer me different rates?

Insurance carriers use several different factors when calculating the prices they charge. Things like where your home is, where you live, age, gender, and sometimes even things like your credit score can all be used. Both American Select and Hanover calculate rates using different formulas, so it's likely they'll offer different premiums. The best way to determine which carrier is the most affordable for you is by comparing personalized quotes from several different companies.

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

The only way to find the car 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 quotes from dozens of your local top auto insurance companies for free. With those, you can guarantee you're getting the best rate. And maybe you'll find that the best carrier for you isn't American Select 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.