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

Quick Facts

• Based on national averages for insurance, Erie offers significantly cheaper premiums than Hanover
• Erie tends to be a much less expensive option for residents of suburban areas
• Erie offers more affordable average prices for drivers who have less-than-stellar credit

Erie vs. Hanover: Which Company has the Cheapest Car Insurance?

So, you're considering switching your auto insurance. After all, you've seen ads from all sorts of companies offering substantial discounts. But exactly how much can you save by switching?

You might be considering Erie or Hanover for your next policy, but which one will offer you cheaper premiums?

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

Even so, that doesn't necessarily mean Erie will be the more affordable option for every driver. Car insurance carriers use tons of complex algorithms to calculate rates, so depending on where you live or how good your credit score is (among quite a few other factors), you could see wildly different premiums from the ones above.

So, if you want to find out which of Erie or Hanover is really the best for you, keep reading to see average prices for each carrier broken down by a variety of different rate factors.

Erie or Hanover: Average Car Insurance Rates by State

Erie and Hanover only compete against each other in two states, with Erie offering cheaper rates to the average driver in all of them. Illinois has the most noticable difference, where Erie premiums are over 70% less expensive than insurance rates at Hanover.

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

Which is the Best Company For Young Drivers?

Teen drivers will almost always have the most expensive auto insurance prices of any other group of drivers out there on the road. The reason is that young, inexperienced drivers are statistically much more likely to get into accidents since they have less experience on the roads.

But that doesn't mean teen drivers can't still save money on their car insurance. Just look at the table above -- where 18-year-old drivers who have Erie for their insurance pay more than $500 less than those who use Hanover.

That being said, both companies will offer you dramatically lower premiums by the time you turn 25. For example, average prices for Erie policyholders reduce over $150 and Hanover's rates decrease around $500 over that time.

Which is the Best Company for Retired Drivers?

When it comes to auto insurance, patience and experience pay off, with drivers around retirement age paying some of the lowest prices out there.

So, which company offers the best rates to retired drivers? Erie gets the edge, with premiums for drivers 65 and older $497 more affordable than the national average for Hanover.

Which is the Best Company for Married Drivers?

Did you know that car insurance rates are typically less expensive for married drivers than they are for single drivers? This usually boils down to married policyholders having multiple cars on their policy -- something many insurance carriers will reward with discounts.

When it comes to relationship status, Erie is the clear winner for single policyholders, with prices about $824 a month cheaper than Hanover, on average. The advantage is also clear for married couples - Erie offers the most affordable average premiums.

Erie vs. Hanover: Average Rates by Gender

Men are statistically more likely than women to get into collisions and get speeding tickets, which means they'll usually end up paying more for auto insurance than women.

Women normally pay around 7% per month less than men with Erie, while with Hanover, the difference is closer to 7% a month.

When it comes to the cheapest rates for each gender, Erie offers the most affordable average prices for both men and women, with average premiums 82% less for men and 82% cheaper for women.

Erie 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.

Car insurance isn't the easiest topic to understand. There are a range of different coverages that account for several different things. Some protect you and your vehicle, while others only provide coverage for other people's property and health if you cause an accident.

The two most common policies that many drivers look at fall into two categories -- liability only (which provides bodily injury and property damage coverage for other drivers and their passengers if you cause a collision) and full coverage (which includes comprehensive and collision coverages that protect your own vehicle, alongside what you get with a liability policy).

If you're looking for state minimum liability limits, Erie generally offers significantly more affordable rates of $91 compared to Hanover's $509. When it comes to full coverage policies with similar limits, Erie again has the edge, with policies about $500 per month less expensive than Hanover, on average.

Is Erie or Hanover 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 companies offers the cheapest prices to drivers with less-than-ideal driving records?

Which Company is Best for Drivers with Speeding Tickets?

Erie policyholders can expect their premiums to go up an average of $18 a month if they get a ticket, while Hanover usually raises rates around $221 per month, on average.

However, Erie is normally the more affordable option for drivers both with a speeding ticket and with a clean record, offering prices that are 81% and 84% cheaper, respectively, compared to Hanover Insurance.

Which Company is Best for Drivers After an Accident?

Erie drivers who get in an accident can expect to see their premiums increase by just under 25%, while those who have insurance through Hanover will see about a 35% increase.

Overall, Erie offers the lowest rates for drivers with an at-fault accident on their records, with monthly prices averaging $157 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 auto insurance bill -- generally a lot more than a collision or ticket. For example, Hanover increases average premiums by just under $400 a month -- that's just under a 40% increase.

If you have a DUI on your record and are looking for more affordable rates, Erie tends to be the much more affordable option with average prices of $198 per month compared to 1013 from Hanover.

How does Credit Score Impact Erie and Hanover Rates?

You may not realized it, but your credit score can come into play when carriers determine your monthly bill. Certain states and companies do not allow for credit score to be used as a rating factor, but it will come into play for a lot of policyholders.

Car 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 cheapest premiums for drivers with poor, average, or good credit?

Which Company is Best for Drivers with Good Credit?

Which Company is Best for Drivers with Bad Credit?

Is Erie or Hanover Better for Drivers who Work from Home or Have Short Commutes?

How much you drive can have a large impact on how much insurance companies will charge for coverage. Typically, those who drive less will end up with less expensive prices since there's less of a chance of getting into an accident and causing an insurance claim.

For both drivers who put 6,000 miles on their vehicles annually, as well as those who average twice that figure, Erie tends to be the cheaper option. Erie's average rates for drivers with 6,000 annual miles come in nearly 85% more affordable than Hanover. Those who drive 12,000 miles yearly can expect to pay over 80% less with Erie over Hanover.

Erie vs. Hanover: Compare Rates for Urban, Suburban, and Rural Drivers

Where you live can have a considerable impact on your monthly auto insurance bill. Usually, if you live in an urban area with more cars on the road, you'll pay a little more for car insurance, while the opposite is true for people in rural areas.

When comparing these two carriers side-by-side, Erie normally comes out as the lowest option for drivers in every type of area, no matter if it's urban, suburban, or rural.

Policyholders in rural ZIP codes see the cheapest prices from both companies, but Erie comes out on top with average premiums around $115 monthly. Erie also has cheaper average rates for drivers in urban and suburban ZIP codes -- a 80% and 83% per month respective difference when compared to Hanover policyholders in similar areas.

Erie vs. Hanover Discounts

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

But with what seems like a million different discounts out there, it can be difficult to find all the ones you're eligible for or to nail down the carrier that has the most discounts for your unique driver profile.

Below, we've compared all of the different discounts offered by Erie and Hanover so that you can find the carrier that has the most discounts and, therefore, the biggest savings.

Both carriers offer excellent discounts like advance quote discounts, discounts for being a defensive driver, distant student discounts, and discounts for being a good driver.

Final Thoughts: Is Erie or Hanover Best for You?

You've seen the effect certain factors have on your auto insurance and the different discounts companies offer. That's all well and good, but when it comes down to it, which company is the best company for you and your specific profile and needs?

Erie might be best for you if....

• You have a clean driving record, free of collisions, tickets, or DUIs.
• You want basic car insurance coverage at the state minimum limits.
• You are purchasing your insurance with a spouse.

Hanover 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 Erie and Hanover. 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 insurance policy is to compare quotes from multiple carriers, not just Erie and Hanover. Luckily, Compare.com does all the hard work for you. Just enter your ZIP code below and get free quotes from dozens of the top car insurance companies in your area, all in just a few minutes.

Erie vs. Hanover FAQs

Is Erie or Hanover cheaper?

Looking just at the national average premiums, Erie is the less expensive of the two carriers, offering average rates of $153 a month compared to $853 for Hanover. That being said, Erie won't necessarily be the most affordable carrier for everyone, since there are lots of different variables that come into play when it comes to your auto insurance cost.

Who is better, Erie or Hanover?

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

Why do Erie and Hanover offer me different rates?

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

How do I know if Erie 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 a handful of companies 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 information once and you'll get free quotes from dozens of the best auto insurance carriers in your area. That way, you can guarantee you're getting the cheapest rate. And who knows, the best carrier for you might not be Erie 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.