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

Quick Facts

• Looking at the national averages for car insurance, Mercury offers significantly less expensive premiums than Hanover
• Hanover offers more affordable rates for residents in Arkansas, Connecticut, Illinois, Massachusetts, Michigan, New Hampshire, New Jersey, and New York
• Mercury offers more affordable prices for drivers who have less-than-stellar credit

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

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

You've maybe even narrowed it down to Hanover or Mercury as potential options, but which carrier will offer you cheaper rates?

Looking at the national average rates for both companies, Mercury has average rates that are about 65% per month more affordable than those from Hanover.

But Mercury may not be the lowest or best option for each driver out there. Auto insurance carriers use all sorts of complex algorithms to calculate premiums, so depending on where you live or how old you are (among a whole range of other factors), you could see wildly different prices from the ones above.

Luckily, we've broken down average premiums from both Hanover and Mercury by several different rate factors, so read on to find out which carrier is the best for you.

Hanover or Mercury: Average Car Insurance Rates by State

Hanover and Mercury only compete against each other in three states, with Mercury offering less expensive rates to the average driver in all of them. If you live in New York, Hanover is the more affordable of the two companies when looking at the overall average premiums. Mercury is the cheaper option in Illinois and New Jersey.

That being said, there are plenty of other factors that go into your car insurance payment than just your home state. Read on to learn more.

Which is the Best Company For Young Drivers?

You might already know that teen drivers generally pay a lot more for insurance than any other group of drivers. The reason is that young, inexperienced drivers are statistically much more likely to get into an accident that results in an auto insurance claim, making them much riskier to insure.

However, that doesn't mean that teen drivers have to just accept sky-high auto insurance rates. As you can see above, teens who use Mercury save more than $500 a month compared to those who use Hanover.

Even so, with both carriers, you'll see your prices lower significantly by the time you turn 25. For example, average premiums for Hanover policyholders drop over 60% and Mercury's prices reduce nearly 70% over that time.

Which is the Best Company for Retired Drivers?

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

But who has the best rates for retired drivers between Hanover and Mercury? Mercury gets the edge, with prices for drivers 65 and older $394 more affordable than the national average for Hanover.

Which is the Best Company for Married Drivers?

Did you know that car insurance premiums are typically cheaper for married couples than they are for those who are single? That's normally because married policyholders tend to own and insure multiple cars, which can often earn you a discount.

When it comes to relationship status, Mercury is the clear winner for single drivers, with prices around $641 per month less expensive than Hanover, on average. The advantage for married drivers with Mercury is also obvious, where drivers save almost $450 a month.

Hanover vs. Mercury: Average Rates by Gender

Because men are more likely to get speeding tickets and get into collisions, they are more likely to file a claim with insurance. Therefore, men tend to get higher rates than women.

With Hanover, men usually pay about 7% more per month than women., and around 5% with Mercury.

Looking at the data for each company specifically, Mercury offers the most affordable average rates for both men and women, with average premiums 66% less for men and 65% cheaper for women.

Hanover or Mercury: 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.

Auto 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.

That being said, most policies end up falling into two different types of coverage -- liability only (which covers the other party's property damage and injuries if you cause an accident) and full coverage (which typically refers to having comprehensive and collision coverages in addition to what you get with a liability policy).

If you're looking for state minimum liability insurance, Mercury generally offers significantly more affordable rates of $184 compared to Hanover's $509. When it comes to full coverage policies with similar limits, Mercury again has the edge, with policies about $500 a month less expensive than Hanover, on average.

Is Hanover or Mercury Better for Drivers with Spotty Records?

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

Collisions and tickets will most likely raise your premiums, but is Hanover or Mercury cheaper for drivers with less-than-ideal driving records?

Which Company is Best for Drivers with Speeding Tickets?

Hanover policyholders can expect their rates to go up an average of $221 per month if they get a ticket, while Mercury typically raises prices around $57 a month, on average.

However, Mercury tends to offer the best prices for both drivers who have a recent speeding ticket and those with clean records, offering premiums that are $380 and $544 more affordable, respectively, compared to Hanover Insurance.

Which Company is Best for Drivers After an Accident?

Hanover drivers who get in a collision can expect to see their prices rise by just under $350, while those who have insurance through Mercury will see about a $100 increase.

Overall, drivers who use Mercury end up with the cheaper prices after an accident, with monthly rates averaging $346 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 ticket or even an accident. For example, Hanover increases average prices by just under $400 per month -- that's just under a 40% increase.

If you have a DUI on your record and are looking for more affordable premiums, Mercury tends to be the much cheaper option with average rates of $303 a month compared to 1013 from Hanover.

How does Credit Score Impact Hanover and Mercury Rates?

Did you know that many insurance carriers take your credit score into account when calculating prices? This isn't always the case (for example, Massachusetts and Hawaii are two states that ban the practice entirely), but it does affect many policyholders out there.

The reasoning auto insurance companies use is that drivers with bad credit will be less likely to pay their bills on time; so normally, they'll be asked to pay more, while those with good credit will be rewarded with less expensive rates.

Looking specifically at Mercury and Hanover, which company has the best premiums for policyholders at different credit levels?

Which Company is Best for Drivers with Good Credit?

If you have a great credit score, you'll usually find a better deal with Hanover for an "excellent" credit score. Drivers with "excellent" credit can save 1% compared to Mercury, while those with "good" scores can expect to see better savings from Mercury -- around $260 or 49% more affordable than Hanover each month.

Which Company is Best for Drivers with Bad Credit?

Mercury typically offers lower prices than Hanover when it comes to drivers with less-than-stellar credit. Drivers with "fair" credit pay about $554 a month less with Mercury compared to Hanover, and those with "poor" scores usually save an average of around 1498 monthly.

Is Hanover or Mercury 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 carriers will charge for coverage. Generally, those who drive less will end up with less expensive premiums since there's less of a chance of getting into a collision and causing an insurance claim.

As you can see in the table above, annual mileage doesn't have much of an impact on how much Mercury charges. However, there's a small difference in monthly rates for Hanover, with policyholders who drive 6,000 miles every year paying about $1 less each month compared to those who drive 12,000 miles annually. Still, Mercury is the cheaper option for drivers in both categories.

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

Where your home is 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.

Mercury tends to offer the most affordable rates for drivers in all types of areas, no matter if they're urban, suburban, or rural.

For policyholders in urban ZIP codes, Mercury offers prices around $401 per month compared to Hanover's $966. People who live in suburban ZIP codes can expect to pay about $275 per month for Mercury and $842 for Hanover. Lastly, those in rural areas tend to get the cheapest premiums from both companies, with average monthly prices coming in at $209 and $750 for Mercury and Hanover respectively.

Hanover vs. Mercury Discounts

Regardless of why you might be in the market for a new insurance policy, you're always going to want to save as much money as possible. That's where car insurance discounts comes into play.

But with what seems like a million different discounts out there, it can be difficult to find all the ones you qualify for or to nail down the company that has the most discounts for your unique driver profile.

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

Mercury knocks Hanover out of the park when it comes to the sheer number of discounts available, offering 27 different discounts to Hanover's 27.

Both carriers offer many of the same discounts -- like advance quote discounts, discounts for being a defensive driver, distant student discounts, and discounts for being a good student -- but Mercury also offers continuous insurance discounts, COVID-19 relief discount, e-signature discounts, and more that Hanover does not.

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

Final Thoughts: Is Hanover or Mercury Best for You?

So, we've broken down the average rates for many of the factors insurance companies look at, and we've shown you all the discounts each carrier offers. That's all well and good, but at the end of the day, which insurance company is the right fit for you?

Mercury might be best for you if....

• You haven't received any speeding tickets or been in an accident in the last few years.
• You want basic auto insurance coverage at the state minimum limits.
• You don't spend much time in your car.

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 helps you get a good idea of the differences between Hanover and Mercury and that you can now make a more informed 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 multiple carriers, not just Hanover and Mercury. Luckily, sites like Compare.com do all the hard work for you. 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.

Hanover vs. Mercury FAQs

Is Hanover or Mercury cheaper?

Looking just at the national average premiums, Mercury is the more affordable of the two carriers, offering average rates of $295 a month compared to $853 for Hanover. Even so, Mercury won't necessarily be the lowest carrier for every driver, since there are a variety of different variables (things like age, gender, driving record, etc.) that play a role in how much you pay.

Who is better, Hanover or Mercury?

Unfortunately, the answer truly is "it depends.". No single company is "better" for each driver -- it all depends on the makeup of your unique auto insurance profile. For example, Mercury offers cheaper rates for drivers with a recent DUI, while Hanover is less expensive for drivers with excellent credit.

Why do Hanover and Mercury offer me different rates?

Insurance companies take a look at quite a few different factors when determining the prices they charge drivers. Variables like your driving record, age, where you call home, gender, and sometimes even things like your credit score can all be taken into consideration. Both Hanover and Mercury use different formulas, so each one will most likely offer different premiums. The only real way to see which carrier is the cheapest for you is by comparing personalized quotes from a bunch of different carriers.

How do I know if Hanover or Mercury 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 does all the hard work for you. Just enter your ZIP code 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 best price. And who knows, the best carrier for you might not be Hanover or Mercury 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.