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

Quick Facts

• Based on national averages for insurance, Esurance offers significantly cheaper premiums than Hanover
• Esurance offers more affordable prices for policyholders who have a short commute
• Esurance offers more affordable rates for policyholders who have a clean record

Esurance or Hanover: Which Company has the Cheapest Car Insurance?

So, you're considering switching to 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 be considering Esurance or Hanover for your next policy, but between the two, which company will offer you less expensive premiums?

Looking at the national average rates for both carriers, Hanover is quite a bit more expensive than Esurance, with prices averaging $853 a month compared to just $299 with Esurance.

Even so, Esurance may not be the most affordable or best option for each driver out there. Car insurance companies use tons of complex algorithms to determine rates, so depending on how clean your driving record is or where you live (among lots of other factors), you could see wildly different premiums from the ones above.

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

Esurance vs. Hanover: Average Car Insurance Rates by State

Esurance and Hanover only compete against each other in two states, with Esurance offering more affordable premiums to the average driver in all of them. New Jersey has the most noticable difference, where Esurance prices are $500 cheaper than auto insurance rates at Hanover.

There are plenty of other factors that go into your insurance bill than just where you live. Keep reading to learn more.

Which is the Best Company For Young Drivers?

You might already know that teen drivers generally pay a lot more for car insurance than any other group of drivers. Usually, that's because teen drivers are statistically much more likely to cause collisions and other accidents that will result in an insurance claim.

But that doesn't mean teen drivers can't still save money on their auto insurance. Just look at the table above -- where 18-year-old drivers who have Esurance for their insurance pay over 65% less than those who use Hanover.

That being said, both carriers will drop prices once you turn 25. For example, average rates for Esurance policyholders decrease around $500 and Hanover's premiums lower about $500 over that time.

Which is the Best Company for Retired Drivers?

Drivers around retirement age normally enjoy some of the cheapest auto insurance prices you'll ever see. After all, they've likely been driving for quite some time, which typically reduces their chances of collisions and other infractions that can raise rates.

So, which company offers the best premiums to retired drivers? Esurance gets the edge, with prices for drivers 65 and older more than 60% more affordable than the national average for Hanover.

Which is the Best Company for Married Drivers?

Did you know that insurance premiums are normally less expensive for married drivers than they are for single drivers? That's because policies for married couples typically cover multiple vehicles, which a lot of companies will give you a discount for.

For those who are single, the difference in average rates between these two carriers is significant, with Esurance premiums coming in at around a third of Hanover's. The advantage is also clear for married policyholders - Esurance offers the most affordable average rates.

Esurance or Hanover: Average Rates by Gender

Because women are less likely to get into accidents and get speeding tickets, they run a lower risk of filing a claim with insurance. So, women tend to pay less for car insurance than men.

With Esurance, men generally pay about 7% more per month than women., but with Hanover, the difference is closer to 7% a month.

Looking at overall affordability, Esurance comes out as the cheapest option for both genders. On average, male drivers save about $574 per month and women save around $535 with Esurance compared to the average Hanover policyholder.

Esurance vs. 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.

It's no secret that insurance can be a complicated subject for most people. Everyone needs car insurance, but there are so many different coverages and limits that it can be hard to find the right policy for you.

The two most common 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 a collision) and full coverage (which includes collision and comprehensive coverages that protect your own car, in addition to liability).

Looking specifically at state minimum liability limits, Esurance has the significant edge, with average monthly prices coming in at $201. If you want a full coverage policy with the same state minimum limits, Esurance again has the edge, with policies averaging about $396 a month to Hanover's 1196.

Is Esurance or Hanover Better for Drivers with Spotty Records?

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

At-fault accidents and speeding tickets will most likely raise your premiums, but is Esurance or Hanover cheaper for drivers with spotty records?

Which Company is Best for Drivers with Speeding Tickets?

Policyholders who use Esurance for their insurance can usually expect their monthly bill to go up around 16% after getting a speeding ticket. Hanover policyholders can expect a bit more drastic of an increase of about 26%.

However, Esurance has more affordable rates for drivers in both categories, offering prices that are 61% and 66% less expensive, respectively, compared to Hanover Insurance.

Which Company is Best for Drivers After an Accident?

Both companies will increase rates pretty significantly if you get into an at-fault collision with Hanover raising by around 35%. Esurance has a less extreme increase, but you can still expect to pay nearly 35% more than you were prior to your first accident.

At the end of the day, drivers who use Esurance end up with the cheaper prices after an accident, with average prices coming in at $364 compared to Hanover Insurance's $943.

Which Company is Best for Drivers with a DUI?

On average, a DUI offense is going to cost you much more than a single collision or ticket when it comes to your car insurance bill. On average, Hanover will increase your premiums about 39% after a DUI, while Esurance's average rates rise by just under 20%.

But if you end up with a DUI charge and are looking for more affordable premiums, Esurance tends to be cheaper for the average driver, with monthly premiums coming in at around $301 to Hanover's 1013.

How does Credit Score Impact Esurance and Hanover Rates?

In many cases, your credit score can be used as one of the variables to calculate your monthly auto insurance prices. This isn't true for everyone (Hawaii, for example, has banned the use of credit score as a car insurance factor) but it will come into play for lots of drivers.

Insurance carriers argue that those with good credit scores are more likely to pay their bills on time every month, which lowers the risk involved on their end, while the opposite is true for those with bad credit.

Looking at Esurance and Hanover specifically, which carrier has the lowest rates for policyholders at different credit levels?

Which Company is Best for Drivers with Good Credit?

Which Company is Best for Drivers with Bad Credit?

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

How much you drive can have a sizable impact on your monthly auto insurance payment. Generally, those who drive less will end up with more affordable premiums since there's less of a chance of causing an accident and filing an insurance claim.

Esurance tends to be the less expensive option for both remote workers and those taking short commutes. Esurance's average prices for drivers with 6,000 annual miles come in about 65% more affordable than Hanover. Those who drive 12,000 miles annually can expect to pay around 65% less with Esurance over Hanover.

Esurance or Hanover: Compare Rates for Urban, Suburban, and Rural Drivers

Where your home is can play a substantial role in how much you pay for car insurance. Usually, drivers who live in less densely populated rural areas will pay quite a bit less than urban policyholders because of the small number of vehicles that are on the roads where they live.

When comparing these two companies side-by-side, Esurance typically comes out as the most affordable option for drivers in all areas, regardless of if they're urban, suburban, or rural.

Those in rural areas can expect to save about $539 with Esurance compared to Hanover. People who live in suburban areas pay around $554 less with Esurance compared to Hanover. For drivers in urban ZIP codes, Esurance's average rates are about $570 less than Hanover Insurance.

Esurance vs. Hanover Discounts

No matter 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 you can, and the best way to do that is by taking advantage of as many car insurance discounts as possible.

But where do you even start? With so many discounts out there, it may seem hard to find all the of the ones you can take advantage of.

Luckily, we did the hard work for you and looked at all of the different discounts Esurance and Hanover offer their customers so that you can see which one can save you the most money each month.

Looking at the total number of discounts, Esurance has advantage when it comes to total number of discounts. Hanover offers a grand total of 21 discounts, while Esurance has 24.

A couple of those are overlapping for things like advance quote discounts, discounts for being a defensive driver, DRL discounts, and discounts for being a good student. Esurance also offers discounts for agency transfer, good payer, military, and more.

On the other hand, Hanover has a few proprietary discounts of their own for things like annual mileage discounts, distant student discounts, driver training discounts, and more.

Final Thoughts: Is Esurance or Hanover Best for You?

So, we've broken down the average premiums for many of the factors insurance carriers look at, and we've shown you all the discounts each carrier offers. But, when it comes down to it, which company is the right company for you and your specific driver profile?

Esurance might be best for you if....

• You've received a ticket for speeding recently and don't want to see your prices climb.
• You already have a great credit score.
• You want to save money while purchasing auto insurance for a teenager.

Hanover might be best for you if...

• You have a more unique driver profile than those we mentioned above.

Hopefully, this guide helps you get a better idea of the difference between Esurance and Hanover. We also hope we've given you the information you need to make the best decision when it comes to your car 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 companies, not just Esurance 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 top car insurance carriers in your area, all in just a few minutes.

Esurance vs. Hanover FAQs

Is Esurance or Hanover cheaper?

Esurance is the less expensive of the two companies when looking at national average premiums, with policies averaging $299 per month with Esurance and $853 for Hanover. That being said, that doesn't mean Esurance will be the cheapest carrier for each driver, since there are many different variables (things like age, driving record, gender, etc.) that play a role in how much you pay.

Who is better, Esurance or Hanover?

Unfortunately, the real answer is "it depends.". No single company is "better" for everyone -- it all depends on what your unique insurance profile looks like.

Why do Esurance and Hanover offer me different rates?

Auto insurance carriers use quite a few different factors when determining the prices they charge. Things such as your driving record, age, gender, where you park your car, and sometimes even things like your credit score can all come into play. Both Esurance and Hanover calculate rates using different variables, so it's likely they'll offer different prices. The best way to determine which carrier is the lowest for you is by comparing personalized quotes from multiple different companies.

How do I know if Esurance 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 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 quotes from dozens of your local top auto insurance companies for free. That way, you can guarantee you're getting the most affordable rate. And maybe you'll find that the best carrier for you isn't Esurance or Hanover 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.