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

Quick Facts

• Looking at the national averages for insurance, Esurance offers significantly more affordable rates than Preferred Mutual
• Esurance offers more affordable prices for drivers who have an at-fault accident on their record
• Preferred Mutual offers more affordable rates for residents in Massachusetts and New York

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

Are you considering a new insurance policy? After all, you've seen ads from all sorts of companies offering large discounts. But exactly how much can you save by switching?

You might have narrowed it down to Esurance or Preferred Mutual as potential options, but which carrier will offer you cheaper premiums?

Looking at the national average rates for both companies, Esurance is quite a bit cheaper than Preferred Mutual, with prices averaging $299 per month compared to $542 with Preferred Mutual.

However, Esurance may not be the most affordable or best option for each driver out there. Auto insurance carriers use a variety of complex algorithms to calculate premiums, so depending on how good your credit score is or how old you are (among a whole range of other factors), you could see wildly different rates from the ones above.

Luckily, we've broken down average prices from both Esurance and Preferred Mutual by multiple different rate factors, so read on to find out which company is the best for you.

Esurance or Preferred Mutual: Average Car Insurance Rates by State

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

There are plenty of other factors that go into your insurance bill than just your home state. Read on to learn more.

Which is the Best Company For Young Drivers?

Teen drivers will almost always have the most expensive auto insurance premiums of any group on the road. Normally, 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 that doesn't mean that teen drivers have to just accept sky-high insurance rates. For example, 18-year-old drivers pay an average of nearly $400 less a month by choosing Esurance over Preferred Mutual. It's worth noting that Esurance offers car 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.

That being said, both companies will offer you dramatically lower rates by the time you turn 25. For example, average premiums for Esurance policyholders drop more than 65% and Preferred Mutual's prices decrease over 55% over that time.

Which is the Best Company for Retired Drivers?

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

So, which carrier offers the best rates to retired drivers? Esurance gets the edge, with prices for drivers 65 and older $166 cheaper than the national average for Preferred Mutual.

Which is the Best Company for Married Drivers?

Did you know that car insurance premiums are generally more expensive for those who are single than they are for married drivers? That's usually 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, Esurance is the clear winner for single drivers, with rates about $254 per month less expensive than Preferred Mutual, on average. The advantage is also clear for married policyholders - Esurance offers the most affordable average premiums.

Esurance vs. Preferred Mutual: Average Rates by Gender

Women tend to pay less for insurance than men. This is because men are statistically more likely than women to get pulled over for speeding or get into an accident, which leads to increased risk for insurers and, therefore, higher rates.

On average, women see prices more than $20 a month cheaper with Esurance, and around $15 with Preferred Mutual.

Looking at the data for each company specifically, Esurance offers the lowest average premiums for both men and women, with average rates $241 less for men and $246 cheaper for women.

Esurance 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 car insurance can be a complicated subject for most people. There are so many different limits and coverages that it can make it pretty confusing to find the right policy.

The two most common policies that many drivers look at fall into two categories -- liability only (which covers the other party's property damage and injuries if you cause a collision) and full coverage (which includes two additional coverages -- comprehensive and collision -- alongside liability).

If you're looking for state minimum liability insurance, Esurance generally offers more affordable prices of $201 compared to Preferred Mutual's $234. When it comes to full coverage policies with similar limits, Esurance again has the edge, with policies about $450 per month less expensive than Preferred Mutual, on average.

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

You've probably seen plenty of commercials from auto insurance carriers offering great premiums 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 tickets and at-fault collisions lead to higher rates, but which carrier -- Esurance or Preferred Mutual -- has the cheapest prices for drivers with less-than-ideal driving records?

Which Company is Best for Drivers with Speeding Tickets?

Esurance policyholders can expect their premiums to go up an average of $45 a month if they get a ticket, while Preferred Mutual typically raises rates around $3 per month, on average.

Even so, Esurance tends to offer the best prices for both drivers who have clean records and those with a recent speeding ticket -- their rates are around 38% more affordable for drivers with clean records and 27% cheaper for those with a ticket.

Which Company is Best for Drivers After an Accident?

Esurance drivers who get in an accident can expect to see their prices rise by over $100, while those who have insurance through Preferred Mutual will see about a $95 increase.

Overall, drivers who use Esurance end up with the cheaper prices after an accident, with monthly rates averaging $364 compared to Preferred Mutual's $486.

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 insurance bill. For example, Preferred Mutual increases average premiums by over $500 a month -- that's over a 55% increase.

Esurance has the overall lowest prices for drivers with a DUI on their records at $301 a month, but it's worth noting that Esurance'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 Esurance and Preferred Mutual Rates?

Did you know that many auto insurance companies take your credit score into account when calculating premiums? This isn't always the case (for example, Hawaii and Massachusetts are two states that ban the practice entirely), but it might come into play for quite a few policyholders.

Insurance carriers argue that someone with bad credit is less likely to pay their bills on time, which makes them riskier to insure. Because of that, drivers with bad credit will often be forced to pay more.

Looking at Esurance and Preferred Mutual specifically, which company has the cheapest rates for policyholders at different credit levels?

Which Company is Best for Drivers with Good Credit?

If you have great credit, you'll usually find a better deal with Esurance. Drivers with "excellent" credit can save more than 55% compared to Preferred Mutual, and those with "good" scores can also expect to see savings -- around $303 or 53% less expensive each month.

Which Company is Best for Drivers with Bad Credit?

Esurance typically offers lower prices than Preferred Mutual when it comes to drivers with less-than-stellar credit. Drivers with "fair" credit pay about $347 per month less with Esurance compared to Preferred Mutual, and those with "poor" scores normally save an average of around $407 per month.

Is Esurance 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 car insurance companies will charge for coverage. That's because the more miles you put on your vehicle each year, the more likely you are to get into a collision and cause an insurance claim.

For both drivers who put 6,000 miles on their vehicles every year, as well as those who average twice that figure, Esurance tends to be the more affordable option. Preferred Mutual's average premiums for drivers with 6,000 annual miles come in about 45% more expensive than Esurance. Those who drive 12,000 miles annually can expect to pay around 45% more with Preferred Mutual over Esurance.

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

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

When comparing these two carriers side-by-side, Esurance 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 companies, but Esurance comes out on top with average premiums about $211 monthly. Esurance also has less expensive average rates for drivers in urban and suburban ZIP codes -- a 56% and 39% a month respective difference when compared to Preferred Mutual policyholders in similar areas.

Esurance vs. Preferred Mutual Discounts

Regardless of why you might be in the market for a new car 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 auto 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 taken a look at all of the different discounts Esurance and Preferred Mutual offer their customers so that you can easily see which company offers the most discounts and see which ones you might be able to take advantage of.

Esurance blows Preferred Mutual away when it comes to the sheer amount of discounts available, offering 24 different discounts to Preferred Mutual's 14.

Both carriers offer quite a few of the same discounts -- like anti-theft discounts, DRL discounts, discounts for being a good driver, and mature driver discounts -- but Esurance also offers advance quote discounts, agency transfer discounts, education 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 and new business discounts.

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

You've seen the role certain factors have on your car insurance and the different discounts companies offer. But, at the end of the day, is Esurance or Preferred Mutual the best one for you and your specific profile and needs?

Esurance 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.
• Your neighborhood is in the suburbs.

Preferred Mutual might be best for you if...

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

We hope this guide helps you get a good idea of the differences between Esurance 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 carriers, not just Esurance and Preferred Mutual. Luckily, Compare.com makes it easy for you to do just that. Simply enter your ZIP codes below and get free quotes from dozens of top insurance companies in your area, all in just a few minutes.

Esurance vs. Preferred Mutual FAQs

Is Esurance or Preferred Mutual cheaper?

Looking just at the national average prices, Esurance is the cheaper of the two carriers, offering average rates of $299 per month compared to $542 for Preferred Mutual. But Esurance won't necessarily be the most affordable company for each policyholder, since there are many different variables (things like gender, age, driving record, etc.) that play a role in how much you pay.

Who is better, Esurance or Preferred Mutual?

Unfortunately, the answer truly is "it depends.". No one carrier is necessarily "better" for everyone -- it all comes down to what your unique auto insurance profile looks like.

Why do Esurance and Preferred Mutual offer me different rates?

Car insurance companies take a look at lots of different factors when determining the rates they charge drivers. Variables such as where you park your car, age, where your home is, gender, and sometimes even things like your credit score can all be used. Both Esurance and Preferred Mutual calculate premiums using different factors, so each one will most likely offer different prices. The only real way to see which company is the lowest for you is by comparing personalized quotes from a variety of different carriers.

How do I know if Esurance 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 a handful of companies 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 auto insurance carriers in your area. That way, you can guarantee you're getting the best rate. And who knows, the best company for you might not be Esurance 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.