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

Quick Facts

• Looking at the national averages for car insurance, Erie offers significantly more affordable premiums than Preferred Mutual
• Erie has less expensive prices for people who are single and purchasing insurance by yourself
• Preferred Mutual offers more affordable premiums for residents in Massachusetts and New York

Erie 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 sizable discounts, but exactly how much money can you save by switching?

You might be considering Erie or Preferred Mutual, but between the two, which carrier will save you the most?

Looking at nationwide averages, Erie is quite a bit cheaper than Preferred Mutual, with prices averaging $153 per month compared to $542 with Preferred Mutual.

That being said, that doesn't mean Erie will necessarily be cheaper than Preferred Mutual for each driver. Car insurance companies vary their rates depending on things like how good your credit score is, how old you are, where you live, how clean your driving record is, and tons of other factors, so premiums will change quite a bit from person to person.

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

Erie or Preferred Mutual: Average Car Insurance Rates by State

Erie and Preferred Mutual only compete against each other in one states, with Erie offering more affordable prices to the average driver in all of them. New York has the most noticable difference, where Erie premiums are over 50% less expensive than auto insurance rates at Preferred Mutual.

But there's more to insurance than just your home state. As we mentioned above, there's a lot of things that go into how auto insurance carriers calculate your prices. Keep reading to find out more.

Which is the Best Company For Young Drivers?

Teen drivers will almost always have the most expensive insurance premiums of any group on the road. 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. Just look at the table above -- where 18-year-old drivers who have Erie for their car insurance pay more than $500 less than those who use Preferred Mutual. It's worth noting that Erie offers auto insurance in 11 different states compared to Preferred Mutual's two, which can skew the average prices a bit, but the difference here is still considerable.

Even so, with both companies, you'll see your rates lower significantly by the time you turn 25. For example, average premiums for Erie policyholders drop nearly 55% and Preferred Mutual's prices decrease over 55% over that time.

Which is the Best Company for Retired Drivers?

Drivers around retirement age typically enjoy some of the lowest insurance premiums out there. After all, they've likely been driving for quite some time, which normally decreases their chances of accidents and other infractions that can increase prices.

When looking at Erie and Preferred Mutual specifically, which company is best for retired drivers? Erie gets the edge, with rates for drivers 65 and older $282 cheaper than the national average for Preferred Mutual.

Which is the Best Company for Married Drivers?

Did you know that car insurance premiums are usually more expensive for single drivers than they are for married couples? This usually boils down to married policyholders having several cars on their policy -- something a lot of insurance carriers will reward with discounts.

When it comes to relationship status, Erie is the clear winner for those who are single, with prices about $439 a month less expensive than Preferred Mutual, on average. The advantage for married drivers with Erie is also obvious, where drivers save more than $300 per month.

Erie vs. Preferred Mutual: Average Rates by Gender

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

With Erie, men normally pay around 7% more a month than women., while with Preferred Mutual, the difference is closer to 3% per month.

Looking at the data for each carrier specifically, Erie offers the most affordable average rates for both men and women. On average, male drivers save about $392 a month and women save about $387 with Erie compared to the average Preferred Mutual policyholder.

Erie 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.

For most people, auto insurance can be pretty complicated. There are so many different terms and coverages that it can make it pretty confusing to find the right policy.

However, 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 comprehensive and collision coverages that protect your own vehicle, alongside liability).

If you're looking for state minimum liability insurance, Erie usually offers significantly cheaper prices of $91 compared to Preferred Mutual's $234. When it comes to full coverage policies with similar limits, Erie again has the edge, with policies around $500 per month more affordable than Preferred Mutual, on average.

Is Erie or Preferred Mutual 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.

Collisions and tickets will most likely raise your premiums, but is Erie or Preferred Mutual cheaper for drivers with spotty records?

Which Company is Best for Drivers with Speeding Tickets?

Erie policyholders can expect their rates to go up an average of $18 a month if they get a ticket, while Preferred Mutual typically raises premiums about $3 per month, on average.

But Erie is generally the more affordable option for both drivers who have a recent speeding ticket and those with clean records, offering prices that are $270 and $255 less expensive, respectively, compared to Preferred Mutual.

Which Company is Best for Drivers After an Accident?

Erie drivers who get in a collision can expect to see their rates increase by just under 25%, while those who have insurance through Preferred Mutual will see around a 20% increase.

Overall, the cheaper premiums come from Erie, with monthly prices averaging $157 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 ticket. For example, Preferred Mutual increases average rates by over $500 a month -- that's over a 55% increase.

Erie has the overall cheapest premiums for drivers with a DUI on their records at $198 per month, but it's worth noting that Erie's average rates come from 11 states compared to just two for Preferred Mutual, so the data may be skewed slightly.

How does Credit Score Impact Erie and Preferred Mutual Rates?

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

The reasoning car insurance companies use is that drivers with bad credit will be less likely to pay their bills on time; so normally, they'll be asked to pay more, while those with good credit will be rewarded with more affordable premiums.

So, which company offers the best prices 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 Erie. Drivers with "excellent" credit can save more than 80% compared to Preferred Mutual, and those with "good" scores can also expect to see savings -- about $458 or 80% less expensive each month.

Which Company is Best for Drivers with Bad Credit?

Erie typically offers lower rates than Preferred Mutual when it comes to drivers with less-than-perfect credit. Drivers with "fair" credit pay around $502 per month less with Erie compared to Preferred Mutual, and those with "poor" scores usually save an average of about $573 a month.

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

The amount of time you spend behind the wheel of your car plays a big role in how much auto insurance carriers will charge for coverage. Generally, the more miles you drive, the more you can expect to pay for coverage.

For both drivers who put 6,000 miles on their vehicles every year, as well as those who average twice that figure, Erie tends to be the cheaper option. Preferred Mutual's average premiums for drivers with 6,000 annual miles come in just under $400 more expensive than Erie. Those who drive 12,000 miles annually can expect to pay nearly $400 more with Preferred Mutual over Erie.

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

Where you live can play a big role in how much you pay for insurance. Typically, if you live in a rural area with fewer cars on the road, you'll pay a little less for car insurance, while the opposite is true for people in urban areas.

When comparing these two companies side-by-side, Erie normally comes out as the lowest option for drivers in all types of areas, no matter if they're urban, suburban, or rural.

Policyholders in rural ZIP codes see the cheapest rates from both carriers, but Erie comes out on top with average prices around $115 monthly. Erie also has more affordable average premiums for drivers in urban and suburban ZIP codes -- a 78% and 69% a month respective difference when compared to Preferred Mutual policyholders in similar areas.

Erie 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, and the best way to do that is by utilizing as many insurance discounts as you can.

But where do you even start? With what seems like a million different discounts out there, it may be hard to find all the ones you qualify for.

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

Erie knocks Preferred Mutual out of the park when it comes to the sheer number of discounts available, offering seven more discounts than Preferred Mutual.

There are a couple discounts both companies offer, but Erie also offers advance quote discounts, COVID-19 relief discount, distant student 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 student, group discounts, and more.

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

You've seen the role certain factors have on your auto insurance and the different discounts carriers offer. That's all well and good, but at the end of the day, which carrier is the right one for you and your specific profile and needs?

Erie might be best for you if....

• You have a speeding ticket on your driving record.
• You're looking for more protection with "full coverage" insurance.
• You live in a rural neighborhood.

Preferred Mutual might be best for you if...

• You like the personalized touch of a small, local company.

We hope this guide helps you get a good idea of the differences between Erie and Preferred Mutual and that it aids in making a more informed decision about your car insurance.

At the end of the day, the sure-fire way to make sure you're getting the best deal on your auto insurance policy is to compare quotes from multiple companies, not just Erie and Preferred Mutual. 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 carriers in your area, all in just a few minutes.

Erie vs. Preferred Mutual FAQs

Is Erie or Preferred Mutual cheaper?

Looking just at the national average rates, Erie is the less expensive of the two companies, offering average rates of $153 per month compared to $542 for Preferred Mutual. Even so, Erie won't necessarily be the most affordable carrier for everyone, since there are many different variables (things like driving record, age, gender, etc.) that play a role in how much you pay.

Who is better, Erie or Preferred Mutual?

Sadly, the only answer we can give you is "it depends.". No one company is necessarily "better" for each driver -- it all depends on the makeup of your unique insurance profile.

Why do Erie and Preferred Mutual offer me different rates?

Auto insurance carriers take a look at many different factors when determining the prices they charge drivers. Variables like your driving record, gender, age, where you park your car, and sometimes even things like your credit score can all be used. Both Erie and Preferred Mutual calculate premiums using different formulas, so each one will most likely offer different rates. The only real way to see which carrier is the lowest for you is by comparing personalized quotes from multiple different companies.

How do I know if Erie or Preferred Mutual 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 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 ZIP code 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 cheapest premium. And who knows, the best carrier for you might not be Erie 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.