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

Quick Facts

• Based on national averages for insurance, First Chicago offers significantly more affordable prices than Hanover
• First Chicago offers less expensive average premiums for policyholders who live in rural neighborhoods
• Hanover may help you save more money -- they offer more discounts than First Chicago Insurance

First Chicago 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 hefty savings, but exactly how much money can you save by switching?

You might have narrowed your search down to First Chicago or Hanover as potential options, but which company has cheaper rates for auto insurance?

Looking at nationwide averages, Hanover has average rates that are around 80% a month more expensive than those from First Chicago.

However, First Chicago may not be the cheapest or best option for every driver out there. Car insurance carriers vary their premiums depending on things like how good your credit score is, how clean your driving record is, how old you are, where you live, and all sorts of other factors, so prices could vary drastically from person to person.

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

First Chicago vs. Hanover: Average Car Insurance Rates by State

First Chicago and Hanover only compete against each other in Illinois, where First Chicago offers the cheaper average prices. Undefined drivers tend to pay about undefined per month less on average compared to drivers who use undefined for their insurance.

There are plenty of other factors that go into your auto insurance payment than just where you live. Read on to find out more.

Which is the Best Company For Young Drivers?

You might already know that teen drivers normally pay a lot more for car insurance than any other group of drivers. Generally, that's because teen drivers are statistically much more likely to get into an accident that results in an insurance claim, making them much riskier to insure.

Even so, that doesn't mean that teen drivers have to just accept sky-high insurance rates. Just look at the table above -- where 18-year-old drivers who have First Chicago for their auto insurance pay over 80% less than those who use Hanover.

That being said, both companies will offer you dramatically lower premiums once you turn 25. For example, average prices for First Chicago policyholders reduce almost 60% and Hanover's rates decrease more than 60% over that time.

Which is the Best Company for Retired Drivers?

Once you approach retirement age, you'll usually enjoy the most affordable car insurance prices out there. You've been on the road for years, and all that experience pays off when it comes to your monthly premiums for auto insurance.

So, which carrier offers the best rates to retired drivers? First Chicago gets the edge, with prices for drivers 65 and older $499 more affordable than the national average for Hanover.

Which is the Best Company for Married Drivers?

Those who are single tend to get offered slightly more expensive insurance premiums than married policyholders. This usually boils down to married couples having multiple vehicles on their policy -- something quite a few auto insurance carriers will reward with discounts.

For single policyholders, the difference in average rates between these two companies is significant, with First Chicago premiums coming in at about a quarter of Hanover's. The advantage for married drivers with First Chicago is also obvious, where drivers save over 80% a month.

First Chicago or Hanover: Average Rates by Gender

Because women are less likely to get into accidents and get tickets, they have a decreased chance of filing a claim with insurance. So, women tend to pay less for insurance than men.

On average, women see rates around $10 per month less expensive with First Chicago, and about $60 less with Hanover.

When it comes to the lowest prices for each gender, First Chicago offers the cheapest average rates for both men and women. On average, women save about $673 a month and men save around $721 with First Chicago compared to the average Hanover policyholder.

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

But most policies that drivers look at fall into two categories -- liability coverage (which provides property damage and bodily injury coverage for other drivers if you cause a collision) and full coverage (which includes collision and comprehensive coverages that protect your own car, in addition to liability coverage).

Looking specifically at state minimum liability limits, First Chicago has the significant edge, with average monthly premiums coming in at $73. If you want a full coverage policy with the same state minimum limits, First Chicago again has the edge, with policies averaging about $240 per month to Hanover's 1196.

Is First Chicago or Hanover Better for Drivers with Spotty Records?

You've probably seen plenty of commercials from auto insurance carriers offering great prices for good drivers, but that doesn't mean people with less-than-perfect driving records can't save money, too.

You'll probably end up paying more with at-fault collisions and speeding tickets on your record, but which of these two companies offers the lowest premiums to drivers with spotty records?

Which Company is Best for Drivers with Speeding Tickets?

Policyholders who use First Chicago for their insurance can typically expect their monthly bill to go up around 24% after getting a speeding ticket. Hanover policyholders can expect a bit more drastic of an increase of about 26%.

However, First Chicago is usually the cheaper option for drivers both with a ticket and with a clean record, offering rates that are 82% and 83% less expensive, respectively, compared to Hanover Insurance.

Which Company is Best for Drivers After an Accident?

First Chicago drivers who get in an accident can expect to see their prices rise by over $35, while those who have insurance through Hanover will see around a $350 increase.

At the end of the day, the more affordable rates come from First Chicago, with average prices coming in at $146 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 car insurance bill -- typically a lot more than a collision or speeding ticket. For example, Hanover increases average premiums by nearly $400 a month -- that's nearly a 40% increase.

But if you end up with a DUI charge and are looking for more affordable rates, First Chicago tends to be cheaper for the average driver, with monthly premiums coming in at about $225 to Hanover's 1013.

How does Credit Score Impact First Chicago and Hanover Rates?

Did you know many insurance carriers take into account your credit score when determining prices? Certain states and companies do not allow for credit score to be used as a car insurance factor, but it does affect a lot of policyholders out there.

The reasoning auto insurance carriers use is that drivers with good credit will be more likely to pay their bills on time; so they'll reward them with cheaper premiums, while those with poor credit will normally be forced to pay more.

So, which company offers the most affordable rates for policyholders 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 First Chicago or Hanover Better for Drivers who Work from Home or Have Short Commutes?

How much you drive can have a considerable impact on your monthly prices. That's because the fewer miles you put on your vehicle each year, the less likely you are to be in an accident and file an insurance claim.

As you can see in the table above, annual mileage doesn't have much of an impact on how much First Chicago charges. However, there's a small difference in monthly premiums for Hanover, with drivers who put 6,000 miles on their car every year paying around $1 less each month compared to those who drive 12,000 miles annually. Still, for drivers in both categories, First Chicago is the less expensive carrier.

First Chicago 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. Generally, drivers who live in less densely populated rural areas will pay quite a bit less than urban policyholders due to the small number of vehicles that are on the roads where they live.

First Chicago boasts the lowest average rates for drivers in all types of areas, no matter if they're urban, suburban, or rural.

For drivers in urban ZIP codes, First Chicago's average prices are about $196 per month compared to Hanover's $966. People in suburban areas pay around $128 with First Chicago compared to Hanover's $842 per month. Those in rural areas can expect to pay about $145 monthly with First Chicago compared to Hanover's $750.

First Chicago vs. Hanover Discounts

No matter why you might be in the market for a new 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 auto insurance discounts as possible.

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

Luckily, we did the hard work for you and looked at all of the different discounts First Chicago and Hanover offer their customers so that you can find the one that has the most discounts and, therefore, the largest savings.

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

There are a couple discounts both companies offer, but Hanover also offers discounts for annual mileage, distant student, DRL, and more.

On the other hand, First Chicago has a proprietary discount of their own -- a renewal discounts.

Final Thoughts: Is First Chicago or Hanover Best for You?

You've seen the effect certain variables have on your car insurance and the different discounts carriers offer. But, at the end of the day, which carrier is the right carrier for you and your specific driver profile?

First Chicago might be best for you if....

• You have an at-fault collision on your record.
• Your home is located in the suburbs.
• You are purchasing your auto insurance with a spouse.

Hanover might be best for you if...

• You want to save extra money with discounts.

Hopefully, this guide helps you get a better idea of the difference between First Chicago 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 several companies, not just First Chicago and Hanover. Luckily, Compare.com does all the hard work for you. Simply enter your ZIP codes below and get free quotes from dozens of top car insurance carriers in your area, all in just a few minutes.

First Chicago vs. Hanover FAQs

Is First Chicago or Hanover cheaper?

First Chicago is the more affordable of the two companies when looking at national average premiums, with policies averaging $156 a month with First Chicago and $853 for Hanover. That being said, that doesn't mean First Chicago will be the most affordable company for every driver, since there are many different factors that come into play when it comes to your auto insurance cost.

Who is better, First Chicago or Hanover?

Unfortunately, the only answer we can give you is "it depends.". One carrier is not necessarily "better" for everyone -- it all depends on the makeup of your unique insurance profile.

Why do First Chicago and Hanover offer me different rates?

Auto insurance carriers use several different variables when calculating the rates they charge. Things such as age, your driving record, where you park your car, gender, and sometimes even things like your credit score can all come into play. Both First Chicago and Hanover calculate premiums using different formulas, so it's likely they'll offer different prices. The best way to determine which company is the cheapest for you is by comparing personalized quotes from lots of different companies.

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

The only way to find the car insurance carrier that's right for you is by getting quotes from multiple carriers 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 quotes from dozens of your local top insurance companies for free. With those, you can guarantee you're getting the best premium. And maybe you'll find that the best company for you isn't First Chicago 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.