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

Quick Facts

• Based on national averages for auto insurance, Bankers offers significantly more affordable rates than Preferred Mutual
• Bankers offers more discounts than Preferred Mutual
• Bankers has less expensive premiums for drivers who have an at-fault accident on their record

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

Are you considering a new insurance policy? With so many ads from all sorts of companies offering hefty discounts, you're probably wondering exactly how much you might be able to save.

You've maybe even narrowed it down to Bankers or Preferred Mutual as your top options, but which one will offer you cheaper prices?

As you can see, Bankers has average rates that are about 70% per month less expensive than those from Preferred Mutual when looking at the national average rates for car insurance.

Even so, that doesn't mean Bankers will necessarily be cheaper than Preferred Mutual for every driver. Auto insurance companies vary their premiums depending on things like how old you are, how clean your driving record is, where you live, how good your credit score is, and tons of other factors. So, at the end of the day, rates from each carrier will differ quite a bit from person to person.

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

Bankers or Preferred Mutual: Average Car Insurance Rates by State

Bankers and Preferred Mutual only compete against each other in one states, with Preferred Mutual offering more affordable prices to the average driver in all of them. Massachusetts has the most noticable difference, where Preferred Mutual rates are over 20% cheaper than insurance prices at Bankers.

But there's more to calculating car insurance rates than just your home state. Continue reading to learn more about how other factors will affect your rates.

Which is the Best Company For Young Drivers?

Young drivers -- especially teens -- generally pay a lot for insurance compared to older drivers. It's because young, inexperienced drivers are statistically much more likely to get into accidents since they have less experience on the roads.

But still, even with seemingly sky-high premiums, teen drivers can still find ways to save money. Just look at the table above -- where 18-year-old drivers who have Bankers for their auto insurance pay more than $500 less than those who use Preferred Mutual.

That being said, both carriers will offer you dramatically lower rates by the time drivers turn 25. Preferred Mutual offers the steepest reduction, with 25-year-olds paying less than half what 18-year-old drivers are charged. That being said, Bankers still has the cheapest premiums at $160 per month.

Which is the Best Company for Retired Drivers?

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

But who has the best prices for retired drivers between Bankers and Preferred Mutual? Bankers gets the edge, with premiums for drivers 65 and older over 65% more affordable than the national average for Preferred Mutual.

Which is the Best Company for Married Drivers?

You may not be aware, but auto insurance prices tend to be less expensive for married policyholders than they are for single policyholders. This usually boils down to married drivers having more than one car on their policy -- something several insurance companies will reward with discounts.

When it comes to relationship status, Bankers is the clear winner for those who are single, with rates around $420 a month cheaper than Preferred Mutual, on average. For married couples, the advantage is clear again - Bankers has the edge when it comes to average premiums.

Bankers vs. Preferred Mutual: Average Rates by Gender

Did you know men usually pay more for auto insurance than women? This is because men are more likely to get into accidents and get speeding tickets, which increases the chances of an insurance claim.

With Bankers, women normally pay nearly 10% per month less than men, and about 3% less with Preferred Mutual when compared to their male counterparts.

When it comes to the most affordable prices for each gender, Bankers comes out on top for both men and women. On average, women save about $371 a month and men save around $371 with Bankers compared to the average Preferred Mutual policyholder.

Bankers 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.

Car insurance can be a complicated subject for most people. Everyone needs auto insurance, but there are so many different limits and terms that it can be hard to find the right policy.

But most policies end up falling into two different types of coverage -- liability only (which covers the other party's property damage and injuries if you cause an accident) and full coverage (which includes two additional coverages -- comprehensive and collision -- in addition to what you get with liability coverage).

If you're looking for state minimum limits for liability insurance, Bankers typically offers significantly less expensive rates of $66 compared to Preferred Mutual's $234. When it comes to full coverage policies with similar limits, Bankers again has the edge, with policies about $500 per month more affordable than Preferred Mutual, on average.

Is Bankers 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.

You'll probably end up paying more with at-fault accidents and tickets on your record, but which of these two carriers offers the cheapest premiums to drivers with spotty records?

Which Company is Best for Drivers with Speeding Tickets?

Bankers policyholders can expect their rates to go up an average of $20 a month if they get a ticket, while Preferred Mutual normally raises premiums around $3 per month, on average.

However, Bankers tends to offer the best prices for drivers both with a speeding ticket and with a clean record, offering prices that are 69% and 64% less expensive, respectively, compared to Preferred Mutual.

Which Company is Best for Drivers After an Accident?

Bankers drivers who get in a collision can expect to see their rates climb by just under 35%, while those who have insurance through Preferred Mutual will see about a 20% increase.

Overall, Bankers offers the most affordable prices for drivers with an at-fault collision on their records, with monthly premiums averaging $186 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 an accident. Preferred Mutual drivers usually see a 57% climb in their car insurance prices after a DUI charge, while Bankers will generally increase rates by around 49%.

If you have a DUI on your record and are looking for more affordable premiums, Bankers tends to be the much cheaper option with average prices of $238 monthly compared to $902 from Preferred Mutual.

How does Credit Score Impact Bankers and Preferred Mutual Rates?

In many cases, your credit score can be used as one of the variables to calculate your monthly insurance premiums. Certain states and companies do not allow for credit score to be used as a rating factor, but it will come into play for quite a few policyholders.

The reasoning car insurance carriers use is that drivers with good credit will be more likely to pay their bills on time; so they'll reward them with cheaper rates, while those with poor credit will usually be forced to pay more.

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

Which Company is Best for Drivers with Good Credit?

If you have a solid credit score, you'll usually find a better deal with Bankers. Drivers with "excellent" credit can save over 75% compared to Preferred Mutual, and those with "good" scores can also expect to see savings -- about $437 or 77% more affordable every month.

Which Company is Best for Drivers with Bad Credit?

Bankers typically offers lower prices than Preferred Mutual when it comes to drivers with bad credit. Drivers with "fair" credit pay around $495 a month less with Bankers compared to Preferred Mutual, and those with "poor" scores typically save an average of about $637 a month.

Is Bankers 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 big impact on your monthly auto insurance cost? That's because the fewer miles you put on your vehicle, the less likely you are to get into a collision and cause an insurance claim.

Bankers tends to be the less expensive option for both drivers who put 6,000 miles on their vehicles annually, as well as those who average twice that figure. Bankers average rates for drivers with 6,000 annual miles come in over $350 cheaper than Preferred Mutual. Those who drive 12,000 miles yearly can expect to pay more than $350 less with Bankers over Preferred Mutual.

Bankers vs. Preferred Mutual: Compare Rates for Urban, Suburban, and Rural Drivers

Where you park your car can play a considerable role in how much you pay for car insurance. Generally, those who live in rural areas will pay less than policyholders in urban areas because there are a lot fewer vehicles on the road in those areas, which reduces the chances of an accident.

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

For drivers in urban ZIP codes, Bankers offers rates around $172 monthly compared to Preferred Mutual's $902. People who live in suburban ZIP codes can expect to pay about $226 per month for Bankers and $472 for Preferred Mutual. Lastly, those in rural areas tend to get the most affordable premiums from both companies, with average monthly rates coming in at $114 and $253 for Bankers and Preferred Mutual respectively.

Bankers vs. Preferred Mutual Discounts

Regardless of why you might be in the market for a new auto insurance policy, you're always going to want to save as much money as possible. That's where insurance discounts comes into play.

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

In the table below, we've taken a look at all of the different discounts Bankers and Preferred Mutual 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.

Overall, Bankers comes out ahead with 16 discounts to Preferred Mutual's 14.

There are a couple discounts both carriers offer, but Bankers also offers continuous insurance discounts, distant student discounts, driver training discounts, and more that Preferred Mutual does not.

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

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

So, we've broken down the average premiums for many of the factors car insurance companies look at, and walked through the different discounts each company offers, too. But, when it comes down to it, which carrier is the best company for you and your specific needs?

Bankers might be best for you if....

• You're single and purchasing insurance by yourself.
• You care about discounts (Bankers offers the most).
• You're buying auto insurance for a teen and looking for a wallet-friendly option.

Preferred Mutual 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 Bankers and Preferred Mutual and that you can now make a more informed decision when it comes to 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 several carriers, not just Bankers and Preferred Mutual. 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 top auto insurance companies in your area, all in just a few minutes.

Bankers vs. Preferred Mutual FAQs

Is Bankers or Preferred Mutual cheaper?

Looking just at the national average prices, Bankers is the more affordable of the two carriers, offering average rates of $171 a month compared to $542 for Preferred Mutual. That being said, Bankers won't necessarily be the cheapest company for each policyholder, since there are a variety of different variables that come into play when it comes to your insurance bill.

Who is better, Bankers or Preferred Mutual?

Sadly, the only answer we can give you is "it depends.". Neither carrier is necessarily "better" for everyone -- it all depends on what your unique car insurance profile looks like.

Why do Bankers and Preferred Mutual offer me different rates?

Auto insurance companies take a look at lots of different factors when calculating the rates they charge policyholders. Things such as your driving record, gender, age, where you call home, and sometimes even things like your credit score can all come into play. Both Bankers and Preferred Mutual calculate prices differently, so each one will most likely offer different premiums. The only real way to see which company is the lowest for you is by comparing personalized quotes from multiple different carriers.

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

The only way to find the car insurance carrier that's right for you is by getting quotes from multiple 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 free quotes from dozens of the best auto insurance carriers in your area. With those, you can guarantee you're getting the best price. And who knows, the best company for you might not be Bankers 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.