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

Quick Facts

• Based on national averages for insurance, GEICO offers significantly less expensive rates than Hanover
• GEICO offers more affordable premiums for policyholders who drive a short distance to work everyday
• Hanover offers more affordable prices for residents in Arkansas, Connecticut, Illinois, Massachusetts, Michigan, New Hampshire, New Jersey, and New York

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

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

You've maybe even narrowed your search down to GEICO or Hanover for your next policy, but between the two, which carrier has cheaper premiums for car insurance?

Looking at nationwide averages, Hanover is quite a bit more expensive than GEICO, with rates averaging $853 per month compared to just $185 with GEICO.

That being said, GEICO may not be the most affordable or best option for each driver out there. After all, auto insurance companies can offer drastically different rates to each driver depending on rating factors like where you call home, your driving record, your age, or even your credit score (among other things), so premiums could change drastically from person to person.

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

GEICO or Hanover: Average Car Insurance Rates by State

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

But there's more to auto insurance than just where you live. As we mentioned above, there's a lot of things that go into how car insurance carriers calculate your rates. Read on to learn 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 because young, inexperienced drivers are statistically much more likely to get into accidents since they have less experience on the roads.

However, that doesn't mean teen drivers can't still save money on their auto insurance. As you can see above, teens who use GEICO save more than $500 a month compared to those who use Hanover.

Even so, both companies will drop premiums by the time drivers turn 25. For example, average prices for GEICO policyholders decrease over 55% and Hanover's rates lower more than 60% over that time.

Which is the Best Company for Retired Drivers?

Drivers around retirement age usually enjoy some of the cheapest insurance premiums 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 rates.

When looking at GEICO and Hanover specifically, which company is best for retired drivers? GEICO gets the edge, with prices for drivers 65 and older $465 more affordable than the national average for Hanover.

Which is the Best Company for Married Drivers?

Did you know that car insurance rates are typically more expensive for those who are single than they are for married policyholders? That's because policies for married couples generally cover more than one car, which many carriers will offer you a discount for.

When it comes to relationship status, GEICO is the clear winner for single drivers, with premiums about $792 per month cheaper than Hanover, on average. The advantage is also clear for married drivers - GEICO offers the lowest average prices.

GEICO vs. Hanover: Average Rates by Gender

Women tend to pay less for insurance than men. This is because men are more likely to get tickets and get into collisions, which increases the chances of an insurance claim.

Typically, men see premiums nearly $10 a month higher with GEICO, and around $60 more with Hanover.

Looking at overall affordability, GEICO offers the most affordable average rates for both men and women, with average prices $694 less for men and $642 cheaper for women.

GEICO 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, auto insurance isn't the easiest topic to understand. Everyone needs car insurance, but there are so many different terms and limits that it can be hard to find the right policy.

The two most common policies that many drivers look at fall into two categories -- liability only (which provides bodily injury and property damage coverage for other drivers and passengers if you cause an accident) and full coverage (which includes comprehensive and collision coverages that protect your own vehicle, alongside what you get with a liability policy).

If you're looking for state minimum liability insurance, GEICO typically offers significantly more affordable premiums of $101 compared to Hanover's $509. When it comes to full coverage policies with similar limits, GEICO again has the edge, with policies about $500 per month less expensive than Hanover, on average.

Is GEICO 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.

It's no secret secret that tickets and collisions lead to higher prices, but which carrier -- GEICO or Hanover -- has the lowest rates for drivers with less-than-ideal driving records?

Which Company is Best for Drivers with Speeding Tickets?

GEICO policyholders can expect their prices to go up an average of $35 a month if they get a ticket, while Hanover normally raises premiums around $221 per month, on average.

But GEICO tends to offer the best prices for drivers both with clean records and with a speeding ticket. Drivers with a clean record can save about $502 a month and drivers with a ticket can save around $688 per month with GEICO.

Which Company is Best for Drivers After an Accident?

Both companies will raise rates pretty significantly if you get into an at-fault accident with Hanover climbing by just under $350. GEICO has a less extreme rise, but you can still expect to pay $85 more than you were prior to your first collision.

Overall, drivers who use GEICO end up with the cheaper prices after an accident, with monthly prices averaging $200 compared to Hanover Insurance's $943.

Which Company is Best for Drivers with a DUI?

If you get a DUI charge on your record, it's probably going to cost you more than a simple speeding ticket or even a collision. Hanover drivers usually see a 39% increase in their car insurance rates after a DUI charge, while GEICO will usually raise premiums by about 58%.

If you have a DUI on your record and are looking for more affordable prices, GEICO tends to be the much cheaper option with average premiums of $275 monthly compared to 1013 from Hanover.

How does Credit Score Impact GEICO and Hanover Rates?

In many cases, your credit score can come into play when carriers determine your monthly bill. Certain states and companies do not allow for credit score to be used as a rating factor, but it might come into play for quite a few drivers.

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

Looking specifically at Hanover and GEICO, which company has the best 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 GEICO. Drivers with "excellent" credit can save over 40% compared to Hanover, and those with "good" scores can also expect to see savings -- around $362 or 69% more affordable each month.

Which Company is Best for Drivers with Bad Credit?

GEICO typically offers lower prices than Hanover when it comes to drivers with bad credit. Drivers with "fair" credit pay about $659 a month less with GEICO compared to Hanover, and those with "poor" scores generally save an average of around 1651 per month.

Is GEICO or Hanover 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 your monthly rates. Usually, those who drive fewer miles will end up with less expensive premiums since there's less of a chance of getting into an accident and causing an insurance claim.

For both drivers who put 6,000 miles on their vehicles yearly, as well as those who average twice that figure, GEICO offers cheaper prices than Hanover. GEICO's average premiums for drivers with 6,000 annual miles come in about 79% more affordable than Hanover. Those who drive 12,000 miles every year can expect to pay around 78% less with GEICO over Hanover.

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

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

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

Policyholders in rural ZIP codes see the cheapest premiums from both carriers, but GEICO comes out on top with average prices about $159 a month. GEICO also has less expensive average rates for drivers in urban and suburban ZIP codes -- a 78% and 78% per month respective difference when compared to Hanover policyholders in similar areas.

GEICO vs. Hanover Discounts

You want to save as much money as possible, right? The best way to do that is by taking advantage of as many car 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 broken down all of the different discounts offered by both GEICO and Hanover so that you can find the one that has the most discounts and, therefore, the biggest savings.

GEICO blows Hanover away when it comes to the sheer amount of discounts available, offering seven more discounts than Hanover.

A couple of those are overlapping for things like anti-theft discounts, distant student discounts, discounts for getting driver training, and discounts for being a good driver. GEICO also offers commercial drivers license discounts, COVID-19 relief discount, deployed driver discounts, and more that Hanover does not.

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

Final Thoughts: Is GEICO or Hanover Best for You?

So, we've broken down the average premiums for many of the factors insurance companies look at, and walked through the different discounts each carrier offers, too. But, when it comes down to it, is GEICO or Hanover the right carrier for you and your specific needs?

GEICO might be best for you if....

• You're single and purchasing car insurance by yourself.
• You have above-average credit.
• You and your spouse are buying auto insurance together.

Hanover might be best for you if...

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

We hope this guide has ben a valuable resource as you compare GEICO and Hanover and that you can now make a more informed 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 multiple carriers, not just GEICO 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 top car insurance companies in your area, all in just a few minutes.

GEICO vs. Hanover FAQs

Is GEICO or Hanover cheaper?

Looking just at the national average prices, GEICO is the cheaper of the two carriers, offering average rates of $185 a month compared to $853 for Hanover. Even so, GEICO won't necessarily be the lowest carrier for each policyholder, since there are a bunch of different variables (things like gender, age, driving record, etc.) that play a role in how much you pay.

Who is better, GEICO or Hanover?

Sadly, the answer truly is "it depends.". One company is not "better" for everyone -- it all depends on what your unique auto insurance profile looks like.

Why do GEICO and Hanover offer me different rates?

Insurance companies take a look at several different factors when calculating the rates they charge drivers. Things like where your home is, gender, where you park your car, age, and sometimes even things like your credit score can all be used. Both GEICO and Hanover calculate premiums using different formulas, so each one will most likely offer different prices. The only real way to see which carrier is the most affordable for you is by comparing personalized quotes from a variety of different carriers.

How do I know if GEICO 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 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 lowest premium. And who knows, the best carrier for you might not be GEICO 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.