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

Quick Facts

• In general, Encompass offers cheaper prices than Preferred Mutual
• Encompass offers less expensive average premiums for policyholders who drive fewer than 6,000 miles annually
• Preferred Mutual has cheaper rates in MA and NY

Encompass or 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 big savings, but exactly how much money can you save by switching?

You might have narrowed it down to Encompass or Preferred Mutual, but which carrier has more affordable premiums for insurance?

As you can see, Preferred Mutual has average rates that are around 14% a month more expensive than those from Encompass when looking at the national average rates for auto insurance.

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

Luckily, we've broken down average premiums from both Encompass and Preferred Mutual by a range of different rate factors, so read on to find out which company is the best for you.

Encompass vs. Preferred Mutual: Average Car Insurance Rates by State

Encompass and Preferred Mutual only compete against each other in one states, with Encompass offering less expensive prices to the average driver in all of them. New York has the most noticable difference, where Encompass rates are $127 cheaper than insurance prices at Preferred Mutual.

That being said, there are plenty of other factors that go into your auto insurance bill than just where you live. Read on to learn more.

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 out there on the road. It's generally because teen 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 prices, teen drivers can still find ways to save money. Just look at the table above -- where 18-year-old drivers who have Preferred Mutual for their insurance pay almost 4% less than those who use Encompass. It's worth noting that Encompass offers auto insurance in 31 different states compared to Preferred Mutual's two, which can skew the average premiums a bit, but the difference here is still considerable.

That being said, both companies will offer you dramatically lower rates once you turn 25. For example, average prices for Encompass policyholders drop about $500 and Preferred Mutual's premiums decrease over $500 over that time.

Which is the Best Company for Retired Drivers?

When it comes to car insurance, patience and experience pay off, with drivers around retirement age paying some of the most affordable rates you'll ever see.

So, which carrier offers the best premiums to retired drivers? Encompass gets the edge, with prices for drivers 65 and older more than 15% less expensive than the national average for Preferred Mutual.

Which is the Best Company for Married Drivers?

Did you know that insurance rates are typically more affordable for married drivers than they are for single drivers? This usually boils down to married couples having more than one vehicle on their policy -- something lots of auto insurance carriers will reward with discounts.

For those who are single, the difference in average premiums between these two companies is not very significant, with Encompass rates coming in at around 7% less than Preferred Mutual's. But for married policyholders, the advantage is clear - Encompass has the edge when it comes to average prices.

Encompass or Preferred Mutual: Average Rates by Gender

Men are statistically more likely than women to get into collisions and file an insurance claim, which means they'll normally end up paying more for car insurance than women.

On average, men see rates about $25 per month higher with Encompass, and around $15 with Preferred Mutual.

Looking at overall affordability, Encompass comes out on top for both men and women, with average premiums $73 less for men and $80 cheaper for women.

Encompass vs. 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.

Auto insurance can be a complicated subject for most people. There are multiple different coverages that account for many 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.

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

When it comes to state minimum liability insurance, Preferred Mutual has the edge, while Encompass offers the lowest average prices for full coverage policies with similar coverage limits. Policyholders looking for basic state minimum coverage can save around $70 with Preferred Mutual, while full coverage comes out to be about $200 cheaper with Encompass Insurance.

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

It's no secret -- drivers with good records end up getting the best deals on their insurance. But that's not to say you can't save money if you don't have the best driving record, either.

You'll probably end up paying more with speeding tickets and accidents on your record, but which of these two carriers offers the most affordable rates to drivers with spotty records?

Which Company is Best for Drivers with Speeding Tickets?

Drivers who use Encompass for their car insurance can usually expect their monthly bill to go up around 21% after getting a speeding ticket. Preferred Mutual policyholders can expect a less drastic increase of about 1%.

Even so, Encompass is normally the less expensive option for both drivers who have a recent ticket and those with clean records -- their rates are around 42% more affordable for drivers with clean records and 27% cheaper for those with a ticket.

Which Company is Best for Drivers After an Accident?

Encompass policyholders who get in a collision can expect to see their prices increase by over $100, while those who have insurance through Preferred Mutual will see around a $95 increase.

At the end of the day, the less expensive premiums come from Encompass, with average rates coming in at $328 compared to Preferred Mutual's $486.

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 auto insurance bill -- typically a lot more than an accident or speeding ticket. For example, Encompass increases average prices by more than $500 a month -- that's nearly a 80% increase.

Preferred Mutual has the overall lowest premiums for drivers with a DUI on their records at $902 per month, but it's worth noting that Encompass's average rates come from 31 states compared to just two for Preferred Mutual, so the data may be skewed slightly.

How does Credit Score Impact Encompass and Preferred Mutual Rates?

You may not have known, but your credit score can come into play when companies determine your monthly bill. Certain states and carriers do not allow for credit score to be used as an insurance factor, but it will come into play for quite a few drivers.

Insurance companies argue that someone with good credit is more likely to pay their bills on time, which makes them less risky to insure. Because of that, policyholders with good credit will often be rewarded with more affordable rates.

So, which company offers the cheapest prices for drivers with good, average, or poor credit?

Which Company is Best for Drivers with Good Credit?

If you have a great credit score, Encompass will usually reward you the most. For policyholders with "excellent" credit scores, Encompass comes in more than 30.14 cheaper. Drivers with "good" credit scores generally save about 30% with Encompass compared to average premiums from Preferred Mutual.

Which Company is Best for Drivers with Bad Credit?

Encompass typically offers lower rates than Preferred Mutual when it comes to drivers with less-than-stellar credit. Drivers with "fair" credit pay around 28% per month less with Encompass compared to Preferred Mutual, and those with "poor" scores usually save an average of about 22% monthly.

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

How much you drive can have a pretty big impact on how much car insurance carriers 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.

Encompass tends to be the less expensive option for both remote workers and those taking short commutes. Preferred Mutual average prices for drivers with 6,000 annual miles come in around $76 more expensive than Encompass. Those who drive 12,000 miles every year can expect to pay about $76 more with Preferred Mutual over Encompass.

Encompass or Preferred Mutual: Compare Rates for Urban, Suburban, and Rural Drivers

Where you call home can have a considerable impact on your monthly insurance cost. Typically, those who live in rural areas will pay less than drivers in urban areas because of the small number of vehicles that are on the roads where they live.

Looking at these companies side-by-side, Encompass generally comes out as the more affordable option for drivers in urban and suburban areas, while Preferred Mutual wins in rural areas.

For policyholders in urban ZIP codes, Encompass Insurance's average premiums are around $342 less than Preferred Mutual. People who live in suburban areas pay about $38 less with Encompass compared to Preferred Mutual. Those in rural areas can expect to save around $151 with Preferred Mutual compared to Encompass.

Encompass vs. Preferred Mutual Discounts

You want to save as much money as you can, right? The best way to do that is by taking advantage of as many auto insurance discounts as possible.

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 qualify for.

Luckily, we did the hard work for you and compared all of the different discounts offered by Encompass and Preferred Mutual so that you can easily see which company offers the most discounts and, therefore, the largest savings.

Encompass knocks Preferred Mutual out of the park when it comes to the sheer number of discounts available, offering 26 different discounts to Preferred Mutual's 14.

There are a couple discounts both carriers offer, but Encompass also offers discounts for advance quote, distant student, driver training, and more.

On the other hand, Preferred Mutual has a few proprietary discounts of their own for things like annual mileage discounts, mature driver discounts, multi-car discounts, and more.

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

So, you've seen how different variables can affect your insurance rates. We've broken down the different discounts each company offers, too. That's all well and good, but at the end of the day, which carrier is the right fit for you?

Encompass might be best for you if....

• You've been pulled over for speeding recently.
• Your neighborhood is in a city.
• You're of retirement age and want to take advantage of lower prices.

Preferred Mutual might be best for you if...

• Your driving record includes a DUI charge.
• You live in a rural area.
• You want to save money while purchasing auto insurance for a teenager.

Hopefully, this guide helps you get a better idea of the difference between Encompass and Preferred Mutual. We also hope we've given you the information you need to make the best decision about your car insurance.

At the end of the day, the best way to make sure you're getting the best deal on your insurance policy is to compare quotes from a handful of companies, not just Encompass and Preferred Mutual. Luckily, Compare.com makes it easy for you to do just that. Just enter your ZIP code below and get free quotes from dozens of top auto insurance carriers in your area, all in just a few minutes.

Encompass vs. Preferred Mutual FAQs

Is Encompass or Preferred Mutual cheaper?

Encompass is the cheaper of the two companies when looking at national average premiums, with policies averaging $466 a month with Encompass and $542 for Preferred Mutual. But that doesn't mean Encompass will be the most affordable company for everyone, since there are a variety of different factors (things like age, driving record, gender, etc.) that play a role in how much you pay.

Who is better, Encompass or Preferred Mutual?

Unfortunately, the only answer we can give you is "it depends.". Neither carrier is necessarily "better" for everyone -- it all depends on the makeup of your unique car insurance profile. For example, Encompass is less expensive for drivers with excellent credit, while Preferred Mutual offers more affordable rates for drivers with a recent DUI.

Why do Encompass and Preferred Mutual offer me different rates?

Auto insurance carriers use a lot of different variables when determining the premiums they charge. Things such as where your home is, gender, where you park your car, age, and sometimes even things like your credit score can all be taken into consideration. Both Encompass and Preferred Mutual calculate prices differently, so it's likely they'll offer different rates. The best way to determine which company is the lowest for you is by comparing personalized quotes from several different companies.

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

The only way to find the insurance carrier that's right for you is by getting quotes from multiple 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 quotes from dozens of your local top car insurance companies for free. With those, you can guarantee you're getting the cheapest rate. And maybe you'll find that the best company for you isn't Encompass or Preferred Mutual 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.