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

Quick Facts

• In general, Central Mutual offers significantly less expensive rates than Preferred Mutual
• Central Mutual tends to be a much cheaper option for drivers with a DUI charge on their record
• Central Mutual offers more affordable average premiums for residents of urban areas

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

Are you considering a new insurance policy? 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 Central Mutual or Preferred Mutual as your top options, but which one will offer you cheaper rates?

Looking at nationwide averages, Central Mutual has average rates that are about 35% per month more affordable than those from Preferred Mutual.

However, Central Mutual may not be the most affordable or best option for every single driver out there. After all, car insurance companies can offer drastically different rates to each driver depending on rating factors like your age, your credit score, where you call home, or even your driving record (among other things), so premiums could change drastically from person to person.

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

Central Mutual or Preferred Mutual: Average Car Insurance Rates by State

Central Mutual and Preferred Mutual only compete against each other in one states, with Preferred Mutual offering less expensive rates to the average driver in all of them. New York has the most noticable difference, where Preferred Mutual premiums are over 15% cheaper than insurance prices at Central Mutual.

That being said, there's a lot more that goes into your auto insurance bill than just where you call home. Continue reading to learn more about 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 premiums of any group on the road. That's because young, inexperienced drivers are statistically much more likely to get into an accident that results in an auto insurance claim, making them much riskier to insure.

But that doesn't mean teen drivers can't still save money on their auto insurance. As you can see above, teens who use Central Mutual save more than $500 a month compared to those who use Preferred Mutual.

Even so, with both carriers, you'll see your rates lower significantly once you turn 25. For example, average prices for Central Mutual policyholders reduce nearly 45% and Preferred Mutual's rates decrease over 55% over that time.

Which is the Best Company for Retired Drivers?

Drivers around retirement age normally enjoy some of the cheapest insurance premiums you'll ever see. After all, they've likely been driving for quite some time, which usually decreases their chances of accidents and other infractions that can increase prices.

But who has the best premiums for retired drivers between Central Mutual and Preferred Mutual? Central Mutual gets the edge, with prices for drivers 65 and older more than 30% more affordable than the national average for Preferred Mutual.

Which is the Best Company for Married Drivers?

You may not be aware, but car insurance rates tend to be less expensive for married drivers than they are for those who are single. That's generally 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, Central Mutual is the clear winner for single policyholders, with premiums around $242 per month more affordable than Preferred Mutual, on average. For married policyholders, the advantage is clear again - Central Mutual has the edge when it comes to average rates.

Central Mutual vs. Preferred Mutual: Average Rates by Gender

Men are statistically more likely than women to get into collisions and file an insurance claim. That means when it comes to auto insurance men will typically end up paying a little more.

Women generally pay about 4% a month less than men with Central Mutual, and around 3% less with Preferred Mutual.

Looking at the data for each carrier specifically, Central Mutual offers the most affordable average prices for both men and women, with average premiums $203 less for men and $201 cheaper for women.

Central Mutual 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 insurance can be pretty complicated. Everyone needs car insurance, but there are so many different terms and coverages that it can be hard to find the right policy.

The two most common 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 includes comprehensive and collision coverages that protect your own vehicle, in addition to liability coverage).

If you're looking for state minimum limits for liability insurance, Central Mutual typically offers significantly cheaper prices of $174 compared to Preferred Mutual's $234. When it comes to full coverage policies with similar limits, Central Mutual again has the edge, with policies about $350 per month less expensive than Preferred Mutual, on average.

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

You've probably seen plenty of commercials from 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 at-fault accidents and tickets lead to higher prices, but which company -- Central Mutual or Preferred Mutual -- has the lowest premiums for drivers with less-than-ideal driving records?

Which Company is Best for Drivers with Speeding Tickets?

Central Mutual policyholders can expect their rates to go up an average of $84 a month if they get a ticket, while Preferred Mutual normally raises prices around $3 per month, on average.

That being said, Central Mutual has cheaper premiums for drivers in both categories, offering rates that are 38% and 17% more affordable, respectively, compared to Preferred Mutual.

Which Company is Best for Drivers After an Accident?

Both carriers will raise premiums pretty significantly if you get into an at-fault accident with Preferred Mutual raising by over $95. Central Mutual has a less extreme rise, but you can still expect to pay just under $70 more than you were prior to your first collision.

Overall, drivers who use Central Mutual end up with the cheaper prices after an accident, with monthly prices averaging $311 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 speeding ticket or even a collision. For example, Preferred Mutual increases average rates by more than $500 a month -- that's over a 55% increase.

If you have a DUI on your record and are looking for more affordable premiums, Central Mutual tends to be the much less expensive option with average prices of $482 a month compared to $902 from Preferred Mutual.

How does Credit Score Impact Central Mutual and Preferred Mutual Rates?

Did you know that many car insurance companies take into account your credit score when calculating rates? This isn't always the case (Massachusetts, for example, has banned the use of credit score as a rating factor) but it does affect a lot of drivers out there.

Auto insurance carriers 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 cheapest prices for policyholders with good, average, or poor credit?

Which Company is Best for Drivers with Good Credit?

If you have a great credit score, you'll usually find a better deal with Central Mutual. Drivers with "excellent" credit can save just under 50% compared to Preferred Mutual, and those with "good" scores can also expect to see savings -- about $281 or 49% more affordable each month.

Which Company is Best for Drivers with Bad Credit?

Central Mutual typically offers lower rates than Preferred Mutual when it comes to drivers with less-than-stellar credit. Drivers with "fair" credit pay around $323 per month less with Central Mutual compared to Preferred Mutual, and those with "poor" scores usually save an average of about $345 monthly.

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

How much you drive can have a large impact on your monthly car insurance payment. Normally, the more miles you drive, the more you can expect to pay for coverage.

Central Mutual tends to be the less expensive option for both drivers who put 6,000 miles on their vehicles every year, as well as those who average twice that figure. Central Mutual average premiums for drivers with 6,000 annual miles come in over $200 cheaper than Preferred Mutual. Those who drive 12,000 miles annually can expect to pay nearly $200 less with Central Mutual over Preferred Mutual.

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

Where your home is can play a considerable role in how much you pay for auto insurance. Usually, those who live in urban areas will pay more than policyholders in rural areas because there are a lot more cars on the road in those areas, which increases the chances of an accident.

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

For drivers in urban ZIP codes, Central Mutual offers prices around $529 per month compared to Preferred Mutual's $902. People who live in suburban ZIP codes can expect to pay about $263 a month for Central Mutual and $472 for Preferred Mutual. Lastly, those in rural areas tend to get the cheapest rates from both companies, with average monthly premiums coming in at $228 and $253 for Central Mutual and Preferred Mutual respectively.

Central Mutual vs. Preferred Mutual 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 where do you even start? With so many discounts out there, it may seem hard to find all the of the ones you qualify for.

In the table below, we've broken down all of the different discounts offered by both Central Mutual and Preferred Mutual so that you can easily see which company offers the most discounts and see which ones you might be able to take advantage of.

Looking at the total number of discounts, Central Mutual has a slight advantage when it comes to total number of discounts. Preferred Mutual offers a grand total of 14 discounts, while Central Mutual has 15.

Both carriers offer many of the same discounts -- like ABS discounts, discounts for being a defensive driver, discounts for being a good student, and paid in full discounts -- but Central Mutual also offers book transfer policy 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 -- annual mileage discounts, discounts for being a good driver, mature driver discounts, and more.

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

So, you've seen how different variables can affect your auto insurance prices. We've shown you all the discounts each carrier offers, too. That's all well and good, but at the end of the day, which insurance company is the best company for you and your specific needs?

Central Mutual might be best for you if....

• You have a DUI charge on your record.
• You want basic insurance coverage at the state minimum limits.
• You live in a rural neighborhood.

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 Central Mutual and Preferred Mutual. We also hope we've given you the information you need to make the best decision about your auto 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 multiple companies, not just Central Mutual and Preferred Mutual. Luckily, Compare.com makes it easy for you to do just that. Simply enter your ZIP codes below and get multiple free quotes from some of the best insurance carriers in your area, all in just a few minutes.

Central Mutual vs. Preferred Mutual FAQs

Is Central Mutual or Preferred Mutual cheaper?

Looking just at the national average premiums, Central Mutual is the more affordable of the two companies, offering average rates of $340 per month compared to $542 for Preferred Mutual. Even so, Central Mutual won't necessarily be the lowest carrier for everyone, since there are a bunch of different factors that come into play when it comes to your car insurance cost.

Who is better, Central Mutual or Preferred Mutual?

Unfortunately, the real answer is "it depends.". Neither company is "better" for each driver -- it all depends on the makeup of your unique auto insurance profile.

Why do Central Mutual and Preferred Mutual offer me different rates?

Insurance carriers take a look at quite a few different variables when determining the rates they charge policyholders. Things such as age, gender, where you park your vehicle, your driving record, and sometimes even things like your credit score can all be taken into consideration. Both Central Mutual and Preferred Mutual use 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 several different companies.

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

The only way to find the auto 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 make it easy for you to do just that. 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 price. And who knows, the best carrier for you might not be Central Mutual 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.