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

Quick Facts

• In general, GEICO offers significantly less expensive rates than Preferred Mutual
• GEICO offers more affordable premiums for residents of rural areas
• Preferred Mutual offers more affordable rates for residents in Massachusetts and New York

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

So, you're considering switching your auto insurance. You've probably seen commercials and billboards from companies offering big discounts, but exactly how much money can you save by switching?

You might be considering GEICO or Preferred Mutual as your top options, but which carrier will offer you more affordable prices?

Looking at nationwide averages, GEICO is quite a bit cheaper than Preferred Mutual, with premiums averaging $185 per month compared to $542 with Preferred Mutual.

Even so, GEICO may not be the lowest or best option for every driver out there. Auto insurance companies vary their rates depending on things like how old you are, how clean your driving record is, how good your credit score is, where you live, and all sorts of other factors, so premiums could change drastically from person to person.

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

GEICO or Preferred Mutual: Average Car Insurance Rates by State

GEICO and Preferred Mutual only compete against each other in two states, with GEICO offering cheaper rates to the average driver in all of them. New York has the most noticable difference, where GEICO prices are over 50% less expensive than car insurance premiums at Preferred Mutual.

That being said, there are plenty of other factors that go into your auto insurance cost than just where you call home. Keep reading to learn more.

Which is the Best Company For Young Drivers?

You might already know that teen drivers typically pay a lot more for insurance than any other group of drivers out there on the road. It's usually because young, inexperienced drivers are statistically much more likely to cause collisions and other accidents that will result in an insurance claim.

That being said, that doesn't mean that teen drivers have to just accept sky-high car insurance rates. For example, 18-year-old drivers pay an average of more than $500 less a month by choosing GEICO over Preferred Mutual. It's worth noting that GEICO offers auto insurance in 50 different states compared to Preferred Mutual's two, which can skew the average prices a bit, but the difference here is still considerable.

However, both carriers will offer you dramatically lower premiums once you turn 25. Preferred Mutual offers the steepest decrease, with 25-year-olds paying less than half what 18-year-old drivers are charged. That being said, GEICO still has the cheapest rates at $163 a month.

Which is the Best Company for Retired Drivers?

Drivers around retirement age generally enjoy some of the lowest insurance prices you can find. After all, they've likely been driving for quite some time, which normally lowers their chances of accidents and other infractions that can increase premiums.

But who has the best prices for retired drivers between GEICO and Preferred Mutual? GEICO gets the edge here, with average premiums coming in at about $148 per month compared to Preferred Mutual's $398.

Which is the Best Company for Married Drivers?

Did you know that car insurance rates are generally more expensive for single policyholders than they are for married policyholders? That's because policies for married couples usually cover several cars, which a lot of companies will offer you a discount for.

When it comes to relationship status, GEICO is the clear winner for those who are single, with premiums around $407 per month more affordable than Preferred Mutual, on average. The advantage is also clear for married drivers - GEICO offers the cheapest average rates.

GEICO vs. Preferred Mutual: Average Rates by Gender

Men are statistically more likely than women to cause a collision and get into accidents. That means when it comes to insurance men will typically end up paying a little more.

Usually, women see prices nearly $10 a month less expensive with GEICO, and over $15 cheaper with Preferred Mutual when compared to their male counterparts.

Looking at overall affordability, GEICO comes out on top for both men and women, with average rates $361 less for men and $353 cheaper for women.

GEICO 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 pretty complicated. There are many different coverages that account for multiple different things. Some protect you and your vehicle, while others only provide coverage for other people's property and health if you cause an accident.

But most policies that many drivers look at fall into two categories -- liability only (which provides bodily injury and property damage coverage for other drivers if you cause a collision) and full coverage (which normally refers to having comprehensive and collision coverages in addition to liability coverage).

If you're looking for state minimum liability limits, GEICO generally offers significantly more affordable prices of $101 compared to Preferred Mutual's $234. When it comes to full coverage policies with similar limits, GEICO again has the edge, with policies about $500 per month cheaper than Preferred Mutual, on average.

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

It's no big secret that drivers who are accident-free get better deals on their auto insurance. But even if you have a spotty record, you can still find plenty of ways to save some cash on your monthly bill.

You'll probably end up paying more with collisions and tickets on your record, but which of these two carriers offers the most affordable premiums to 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 Preferred Mutual usually raises premiums around $3 per month, on average.

That being said, GEICO is normally the more affordable option for drivers both with clean records and with a speeding ticket, offering rates that are $274 and $242 cheaper, respectively, compared to Preferred Mutual.

Which Company is Best for Drivers After an Accident?

Both companies will raise premiums pretty significantly if you get into an at-fault accident with Preferred Mutual climbing by over $95. GEICO has a less extreme climb, but you can still expect to pay $85 more than you were prior to your first collision.

Overall, GEICO offers the cheapest prices for drivers with an at-fault accident on their records, with monthly rates averaging $200 compared to Preferred Mutual's $486.

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 ticket or even an accident. For example, Preferred Mutual increases average premiums by more than $500 a month -- that's over a 55% increase.

GEICO has the overall most affordable prices for drivers with a DUI on their records at $275 monthly, but it's worth noting that GEICO's average rates come from 50 states compared to just two for Preferred Mutual, so the data may be skewed slightly.

How does Credit Score Impact GEICO and Preferred Mutual Rates?

Often times, your credit score can be used as one of the factors to calculate your monthly car insurance rates. This isn't always the case (Massachusetts, for example, has banned the use of credit score as a rating factor) but it does affect many drivers out there.

Insurance carriers argue that those with poor credit scores are less likely to pay their bills on time each month, which increases the risk involved on their end, while the opposite is true for those with good credit.

Looking at GEICO and Preferred Mutual specifically, which company has the best prices 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 just under 75% compared to Preferred Mutual, and those with "good" scores can also expect to see savings -- about $405 or 71% less expensive every month.

Which Company is Best for Drivers with Bad Credit?

GEICO typically offers lower rates than Preferred Mutual when it comes to drivers with bad credit. Drivers with "fair" credit pay around $455 per month less with GEICO compared to Preferred Mutual, and those with "poor" scores typically save an average of about $578 per month.

Is GEICO or Preferred Mutual 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 large impact on your monthly premiums? Normally, those who drive less will end up with cheaper rates since there's less of a chance of getting into a collision and causing an insurance claim.

For both drivers who put 6,000 miles on their vehicles annually, as well as those who average twice that figure, GEICO tends to be the less expensive option. Preferred Mutual average prices for drivers with 6,000 annual miles come in around $360 more expensive than GEICO. Those who drive 12,000 miles yearly can expect to pay about $354 more with Preferred Mutual over GEICO.

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

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

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

Policyholders in rural ZIP codes see the lowest prices from both companies, but GEICO comes out on top with average rates around $159 monthly. GEICO also has more affordable average prices for drivers in urban and suburban ZIP codes -- a 77% and 61% a month respective difference when compared to Preferred Mutual policyholders in similar areas.

GEICO vs. Preferred Mutual Discounts

Regardless of 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 possible. That's where insurance discounts comes into play.

But where do you even start? With what seems like a million different discounts out there, it may be challenging to find all the ones you're eligible for.

In the table below, we've compared all of the different discounts offered by GEICO and Preferred Mutual so that you can easily see which company offers the most discounts and see which ones you might be able to take advantage of.

GEICO blows Preferred Mutual away when it comes to the sheer amount of discounts available, offering 28 different discounts to Preferred Mutual's 14.

There are a couple discounts both carriers offer, but GEICO also offers commercial drivers license discounts, COVID-19 relief discount, deployed driver 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 GEICO or Preferred Mutual Best for You?

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

GEICO might be best for you if....

• You're thinking about moving to another state -- Preferred Mutual is only available to Massachusetts and New York residents.
• You want basic insurance coverage at the state minimum limits.
• Your home is located in the suburbs.

Preferred Mutual might be best for you if...

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

We hope this guide helps you get a good idea of the differences between GEICO and Preferred Mutual and that you can now make a more informed decision when it comes to 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 GEICO and Preferred Mutual. Luckily, sites like Compare.com make 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.

GEICO vs. Preferred Mutual FAQs

Is GEICO or Preferred Mutual cheaper?

Looking just at the national average premiums, GEICO is the less expensive of the two carriers, offering average rates of $185 per month compared to $542 for Preferred Mutual. Even so, GEICO won't necessarily be the cheapest carrier for everyone, since there are a bunch of different factors that come into play when it comes to your auto insurance payment.

Who is better, GEICO or Preferred Mutual?

Unfortunately, the only answer we can give you is "it depends.". No single company is necessarily "better" for each driver -- it all depends on what your unique car insurance profile looks like.

Why do GEICO and Preferred Mutual offer me different rates?

Insurance companies take a look at quite a few different variables when calculating the rates they charge drivers. Factors such as gender, your driving record, age, where you park your vehicle, and sometimes even things like your credit score can all be used. Both GEICO and Preferred Mutual calculate prices using 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 several different carriers.

How do I know if GEICO or Preferred Mutual is right for me?

The only way to find the auto 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 information once and you'll get free quotes from dozens of the best insurance carriers in your area. That way, you can guarantee you're getting the best price. And who knows, the best carrier for you might not be GEICO 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.