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

Quick Facts

• Based on national averages for auto insurance, Farmers offers significantly less expensive prices than Hanover
• Farmers tends to be a much cheaper option for policyholders who drive fewer than 12,000 miles yearly
• Hanover offers more affordable rates for residents in Arkansas, Connecticut, Illinois, Massachusetts, Michigan, New Hampshire, New Jersey, and New York

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

Are you in the market for a new insurance policy? With so many ads from all sorts of companies offering hefty discounts, you're probably wondering exactly how much you might be able to save.

You've maybe even narrowed it down to Farmers or Hanover as your top options, but which carrier will save you the most?

Looking at the national average rates for both companies, Farmers is quite a bit cheaper than Hanover, with prices averaging $203 per month compared to $853 with Hanover.

However, that doesn't necessarily mean Farmers will be the more affordable option for each driver. After all, insurance carriers can offer drastically different rates to each driver depending on rating factors like where you call home, your driving record, your credit score, or even your age (among other things). So, at the end of the day, rates from every company will differ quite a bit from person to person.

Wanting to know if Farmers or Hanover is really the right carrier for you? Keep on reading to see how average premiums can change based on all of the factors we've mentioned above.

Farmers or Hanover: Average Car Insurance Rates by State

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

That being said, there's a lot more that goes into your auto insurance payment than just your home state. Keep reading to find out more.

Which is the Best Company For Young Drivers?

Young drivers -- especially teens -- generally pay a lot for insurance compared to older drivers. It's usually because young, inexperienced drivers are statistically much more likely to get into accidents since they have less experience on the roads.

Even so, that doesn't mean teen drivers can't still save money on their auto insurance. For example, 18-year-old drivers pay an average of more than $500 less a month by choosing Farmers over Hanover.

That being said, both companies will offer you dramatically lower premiums by the time drivers turn 25. For example, average rates for Farmers policyholders lower nearly $400 and Hanover's prices drop over $500 over that time.

Which is the Best Company for Retired Drivers?

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

But who has the best premiums for retired drivers between Farmers and Hanover? Farmers gets the edge, with prices for drivers 65 and older more than 75% cheaper than the national average for Hanover.

Which is the Best Company for Married Drivers?

Did you know that auto insurance premiums are typically more affordable for married policyholders than they are for those who are single? That's because policies for married couples usually cover more than one car, which quite a few carriers will offer you a discount for.

When it comes to relationship status, Farmers is the clear winner for single drivers, with rates about $755 per month less expensive than Hanover, on average. The advantage for married drivers with Farmers is also obvious, where drivers save around $500 a month.

Farmers vs. Hanover: Average Rates by Gender

Men are statistically more likely than women to get into an accident or get pulled over for speeding. That means when it comes to insurance men will generally end up paying a little more.

On average, men see premiums about $7 per month higher with Farmers, and around $60 with Hanover.

Looking at overall affordability, Farmers comes out as the cheapest option for both genders, with average prices 77% less for men and 76% cheaper for women.

Farmers 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.

For most people, car insurance can be pretty complicated. There are several different coverages that account for many different things. Some protect you and your vehicle, while others only provide coverage for other people's property and health if you cause a collision.

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

If you're looking for state minimum limits for liability insurance, Farmers normally offers significantly cheaper rates of $126 compared to Hanover's $509. When it comes to full coverage policies with similar limits, Farmers again has the edge, with policies about $500 a month less expensive than Hanover, on average.

Is Farmers 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.

Tickets and at-fault collisions will most likely raise your prices, but is Farmers or Hanover cheaper for drivers with less-than-perfect records?

Which Company is Best for Drivers with Speeding Tickets?

Farmers policyholders can expect their rates to go up an average of $44 per month if they get a ticket, while Hanover generally raises premiums around $221 a month, on average.

But Farmers has more affordable prices for drivers in both categories, offering rates that are $455 and $632 less expensive, respectively, compared to Hanover Insurance.

Which Company is Best for Drivers After an Accident?

After an accident, drivers who have their car insurance through Farmers can expect to see about an $62 -- or around 28% -- increase in their auto insurance premiums. Drivers who use Hanover for their insurance will see a monthly bill about $326 (or 35%) more expensive after reporting a collision to their auto insurance company.

Overall, Farmers offers the lowest prices for drivers with an at-fault accident on their records, with monthly premiums averaging $224 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 speeding ticket when it comes to your car insurance bill. On average, Hanover will climb your rates around 39% after a DUI, while Farmers's average premiums climb by over 25%.

If you have a DUI on your record and are looking for more affordable prices, Farmers tends to be the much more affordable option with average rates of $221 monthly compared to 1013 from Hanover.

How does Credit Score Impact Farmers and Hanover Rates?

In many cases, your credit score can come into play when companies calculate your monthly bill. This isn't always the case (Massachusetts, for example, has banned the use of credit score as a rating factor) but it will come into play for a lot of drivers.

Auto insurance carriers 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 cheaper prices.

Looking at Farmers and Hanover specifically, which one has the best rates for drivers at different credit levels?

Which Company is Best for Drivers with Good Credit?

If you have a solid credit score, you'll usually find a better deal with Farmers. Policyholders with "excellent" credit can save more than 25% compared to Hanover, and those with "good" scores can also expect to see savings -- about $341 or 65% more affordable each month.

Which Company is Best for Drivers with Bad Credit?

Farmers typically offers lower premiums than Hanover when it comes to drivers with less-than-stellar credit. Drivers with "fair" credit pay around $647 per month less with Farmers compared to Hanover, and those with "poor" scores typically save an average of about 1648 a month.

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

Did you know that the amount of time you spend in your car have a substantial impact on your monthly prices? Normally, the more miles you put on your vehicle, the more you can expect to pay for coverage.

As you can see in the table above, annual mileage doesn't have much of an impact on how much Farmers charges. However, there's a small difference in monthly premiums for Hanover, with policyholders who drive the least paying around $1 less every month compared to those who drive 12,000 miles annually. Still, Farmers is the cheaper option for drivers in both categories.

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

We've already mentioned how your home state can play a role in how much you pay for car insurance, but the type of area you live in can have a large impact as well. Usually, if you live in a rural area with fewer cars on the road, you'll pay a little less for insurance, while the opposite is true for people in urban areas.

Farmers tends to offer the cheapest premiums for drivers in all areas, regardless of if they're urban, suburban, or rural.

For drivers in urban ZIP codes, Farmers offers rates about $251 per month compared to Hanover's $966. People who live in suburban ZIP codes can expect to pay around $189 a month for Farmers and $842 for Hanover. Lastly, those in rural areas tend to get the most affordable prices from both companies, with average monthly rates coming in at $170 and $750 for Farmers and Hanover respectively.

Farmers vs. Hanover Discounts

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

The challenging part is finding all of the discounts you qualify for, since it can feel sometimes like every company has different discounts and each one is advertised differently.

In the section below, we've taken a look at all of the different discounts Farmers and Hanover offer their customers so that you can easily see which company offers the most discounts and, therefore, the biggest savings.

Farmers blows Hanover away when it comes to the sheer amount of discounts available, offering 28 different discounts to Hanover's 21.

A couple of those are overlapping for things like advance quote discounts, discounts for being a defensive driver, distant student discounts, and discounts for being a good driver. Farmers also offers alternative fuel discounts, ESC discounts, good payer discounts, and more that Hanover does not.

On the flip side, Hanover has a couple unique discounts of its own -- annual mileage discounts, DRL discounts, education discounts, and more.

Final Thoughts: Is Farmers or Hanover Best for You?

So, you've seen how different factors can affect your insurance prices. We've broken down the different discounts each carrier offers, too. But, when it comes down to it, which insurance company is the right company for you and your specific profile and needs?

Farmers might be best for you if....

• You are considering moving to another state -- Hanover Insurance is only available in eight states.
• Your neighborhood is in a city.
• You and your spouse are buying auto insurance together.

Hanover might be best for you if...

• You live in one of the following states: Arkansas, Connecticut, Illinois, Massachusetts, Michigan, New Hampshire, New Jersey, and New York.

We hope this guide has ben a valuable resource as you compare Farmers and Hanover. We also hope we've given you the information you need to make the best decision when it comes to your insurance.

But, at the end of the day, there's only one way to know for sure that you're getting the best possible deal on auto insurance -- comparing quotes from several carriers, not just Farmers and Hanover. Luckily, sites like Compare.com make it easy for you to do just that. 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.

Farmers vs. Hanover FAQs

Is Farmers or Hanover cheaper?

Looking just at the national average premiums, Farmers is the less expensive of the two carriers, offering average rates of $203 per month compared to $853 for Hanover. Even so, Farmers won't necessarily be the cheapest carrier for everyone, since there are multiple different variables that come into play when it comes to your auto insurance cost.

Who is better, Farmers or Hanover?

Sadly, the answer truly is "it depends.". Neither company is "better" for everyone -- it all depends on the makeup of your unique insurance profile.

Why do Farmers and Hanover offer me different rates?

Car insurance companies take a look at lots of different factors when calculating the prices they charge policyholders. Variables like gender, your driving record, where you park your car, age, and sometimes even things like your credit score can all be used. Both Farmers and Hanover use 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 a variety of different carriers.

How do I know if Farmers or Hanover is right for me?

The only way to find the 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, Compare.com makes it easy for you to do just that. Just enter your area information and you'll get free quotes from dozens of the best car insurance carriers in your area. That way, you can guarantee you're getting the most affordable price. And who knows, the best carrier for you might not be Farmers 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.