Auto-owners vs. Hanover: Which Company is the Best Fit for You?

Quick Facts

• In general, Auto-owners offers significantly cheaper prices than Hanover
• Auto-owners offers more affordable rates for people who are single and purchasing insurance by yourself
• Hanover offers more affordable prices for residents in Arkansas, Connecticut, Illinois, Massachusetts, Michigan, New Hampshire, New Jersey, and New York

Auto-owners vs. Hanover: Which Company has the Cheapest Car Insurance?

So, you're considering switching your auto insurance. With so many ads from all sorts of companies offering pretty big discounts, you're probably wondering exactly how much you might be able to save.

You've maybe even narrowed your search down to Auto-owners or Hanover as potential options, but which carrier will offer you more affordable rates?

Looking at the national average rates for both companies, Auto-owners has average rates that are about 80% per month less expensive than those from Hanover.

However, Auto-owners may not be the cheapest or best option for each driver out there. Car insurance carriers vary their premiums depending on things like how good your credit score is, where you live, how old you are, how clean your driving record is, and a ton of other factors, so prices will vary quite a bit from person to person.

So, if you want to find out which of Auto-owners or Hanover is really the best for you, keep reading to see average rates for each company broken down by multiple different rate factors.

Auto-owners or Hanover: Average Car Insurance Rates by State

Auto-owners and Hanover only compete against each other in three states, with Auto-owners offering more affordable premiums to the average driver in all of them. Illinois has the most noticable difference, where Auto-owners prices are over 70% cheaper than auto insurance premiums at Hanover.

That being said, there's a lot more that goes into your insurance payment than just where you live. Keep reading to find out more.

Which is the Best Company For Young Drivers?

Young drivers -- especially teens -- normally pay a lot for auto insurance compared to older drivers. 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 rates, 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 Auto-owners over Hanover.

Even so, both companies will offer you dramatically lower prices once you turn 25. For example, average rates for Auto-owners policyholders lower nearly 60% and Hanover's premiums drop over 60% over that time.

Which is the Best Company for Retired Drivers?

Once you approach retirement age, you'll generally enjoy the lowest insurance rates you'll ever find. You've been on the road for years, and all that experience pays off when it comes to your monthly premiums for car insurance.

So, which carrier offers the best prices to retired drivers? Auto-owners gets the edge, with premiums for drivers 65 and older almost 80% less expensive than the national average for Hanover.

Which is the Best Company for Married Drivers?

Did you know that insurance rates are usually more expensive for single policyholders than they are for married policyholders? That's because policies for married drivers typically cover more than one car, which many carriers will offer you a discount for.

When it comes to relationship status, Auto-owners is the clear winner for single drivers, with prices around $789 per month more affordable than Hanover, on average. The advantage is also clear for married couples - Auto-owners offers the most affordable average premiums.

Auto-owners vs. Hanover: Average Rates by Gender

Did you know women normally pay less for car insurance than men? This is because men are statistically more likely than women to get into accidents and file an insurance claim, which leads to increased risk for insurers and, therefore, higher rates.

Normally, men see prices more than $10 a month higher with Auto-owners, and about $60 more with Hanover.

Looking at overall affordability, Auto-owners offers the lowest average rates for both men and women, with average premiums 79% less for men and 79% cheaper for women.

Auto-owners 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.

It's no secret that auto insurance can be pretty complicated. Everyone needs insurance, but there are so many different limits and terms that it can be hard to find the right policy.

The two most common policies that many drivers look at fall into two categories -- liability only (which covers the other party's injuries and property damage if you cause an accident) and full coverage (which includes two additional coverages -- comprehensive and collision -- in addition to what you get with liability).

If you're looking for state minimum limits for liability insurance, Auto-owners generally offers significantly cheaper prices of $99 compared to Hanover's $509. When it comes to full coverage policies with similar limits, Auto-owners again has the edge, with policies around $500 per month less expensive than Hanover, on average.

Is Auto-owners or Hanover Better for Drivers with Spotty Records?

You've probably seen plenty of commercials from car 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.

It's no secret secret that tickets and collisions lead to higher premiums, but which company -- Auto-owners or Hanover -- has the cheapest prices for drivers with less-than-perfect records?

Which Company is Best for Drivers with Speeding Tickets?

Auto-owners policyholders can expect their premiums to go up an average of $44 a month if they get a ticket, while Hanover usually raises prices about $221 per month, on average.

But Auto-owners has cheaper rates for drivers in both categories. Drivers with a clean record can save around $496 a month and drivers with a speeding ticket can save about $673 per month with Auto-Owners Insurance.

Which Company is Best for Drivers After an Accident?

Both carriers will increase prices pretty significantly if you get into an at-fault accident with Hanover increasing by just under $350. Auto-owners has a less extreme climb, but you can still expect to pay over $45 more than you were prior to your first collision.

Overall, drivers who use Auto-owners end up with the cheaper prices after an accident, with monthly rates averaging $168 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 a collision. Hanover drivers usually see a 39% raise in their auto insurance premiums after a DUI charge, while Auto-owners will typically increase prices by around 54%.

If you have a DUI on your record and are looking for more affordable rates, Auto-owners tends to be the much more affordable option with average premiums of $264 a month compared to 1013 from Hanover.

How does Credit Score Impact Auto-owners and Hanover Rates?

Did you know that many insurance companies take your credit score into account when calculating prices? This isn't always the case (for example, Hawaii and California are two states that ban the practice entirely), but it might come into play for quite a few drivers.

Auto insurance carriers argue that those with good credit scores are more likely to pay their bills on time each 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 policyholders with good, average, or poor credit?

Which Company is Best for Drivers with Good Credit?

If you have great credit, you'll usually find a better deal with Auto-owners. Drivers with "excellent" credit can save over 55% compared to Hanover, and those with "good" scores can also expect to see savings -- about $397 or 75% less expensive every month.

Which Company is Best for Drivers with Bad Credit?

Auto-owners typically offers lower rates than Hanover when it comes to drivers with less-than-stellar credit. Drivers with "fair" credit pay around $680 a month less with Auto-owners compared to Hanover, and those with "poor" scores generally save an average of about 1587 per month.

Is Auto-owners or Hanover Better for Drivers who Work from Home or Have Short Commutes?

How much you drive can have a big impact on your monthly prices. That's because the more miles you drive, the more likely you are to get into an accident and cause an insurance claim.

For both drivers who put 6,000 miles on their vehicles each year, as well as those who average twice that figure, Auto-owners tends to be the cheaper option. Auto-owners's average rates for drivers with 6,000 annual miles come in around 79% more affordable than Hanover. Those who drive 12,000 miles yearly can expect to pay about 79% less with Auto-owners over Hanover.

Auto-owners vs. 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 car insurance, but the type of area you live in can have a large impact as well. Usually, those who live in urban areas will pay more than policyholders in rural areas because of the number of vehicles that are on the roads in those areas.

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

Drivers in rural ZIP codes see the lowest premiums from both carriers, but Auto-owners comes out on top with average prices around $164 monthly. Auto-owners also has less expensive average premiums for policyholders in urban and suburban ZIP codes -- a $761 and $673 per month respective difference when compared to Hanover drivers in similar areas.

Auto-owners vs. Hanover Discounts

Regardless of why you might be in the market for a new insurance policy, you're always going to want to save as much money as possible, and the best way to do that is by taking advantage of as many car insurance discounts as you can.

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're eligible for.

In the table below, we've compared all of the different discounts offered by Auto-owners 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, Auto-owners comes out ahead with 24 discounts to Hanover's 21.

A couple of those are overlapping for things like advance quote discounts, discounts for being a defensive driver, distant student discounts, and discounts for being a good driver. Auto-owners also offers company car discounts, COVID-19 relief discount, inside storage discounts, and more that Hanover does not.

On the flip side, Hanover has a couple unique discounts of its own -- annual mileage discounts, DRL discounts, EFT discounts, and more.

Final Thoughts: Is Auto-owners or Hanover Best for You?

So, you've seen how different factors can affect your auto insurance rates. We've shown you all the discounts each company offers, too. But, at the end of the day, which insurance carrier is the right company for you, your vehicle, and your wallet?

Auto-owners might be best for you if....

• You're single and purchasing car insurance by yourself.
• You're looking for more protection with "full coverage" auto insurance.
• Your neighborhood is in a rural area.

Hanover might be best for you if...

• You live in one of the following states: Arkansas, Connecticut, Illinois, Massachusetts, Michigan, New Hampshire, New Jersey, and New York.

We hope this guide helps you get a better idea of the difference between Auto-owners and Hanover. We also hope we've given you the information you need to make the best decision when it comes to your insurance.

But, at the end of the day, there's only one way to know for sure that you're getting the best possible deal on auto insurance -- comparing quotes from a handful of companies, not just Auto-owners and Hanover. Luckily, sites like Compare.com make 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 carriers in your area, all in just a few minutes.

Auto-owners vs. Hanover FAQs

Is Auto-owners or Hanover cheaper?

Looking just at the national average prices, Auto-owners is the more affordable of the two companies, offering average rates of $179 a month compared to $853 for Hanover. That being said, Auto-owners won't necessarily be the cheapest company for every driver, since there are several different variables (things like gender, age, driving record, etc.) that play a role in how much you pay.

Who is better, Auto-owners or Hanover?

Unfortunately, the real answer is "it depends.". No single carrier is "better" for everyone -- it all comes down to what your unique insurance profile looks like.

Why do Auto-owners and Hanover offer me different rates?

Auto insurance carriers take a look at lots of different factors when determining the premiums they charge policyholders. Variables like where you park your car, age, gender, where your home is, and sometimes even things like your credit score can all be taken into consideration. Both Auto-owners and Hanover use different formulas, so each one will most likely offer different rates. The only real way to see which company is the lowest for you is by comparing personalized quotes from lots of different companies.

How do I know if Auto-owners 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 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 area information and you'll get free quotes from dozens of the best insurance companies in your area. That way, you can guarantee you're getting the best rate. And who knows, the best company for you might not be Auto-owners 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.