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

Quick Facts

• Based on national averages for auto insurance, Michigan offers significantly more affordable prices than Hanover
• Hanover offers more discounts than Michigan Insurance Company
• Michigan offers more affordable premiums for residents of urban areas

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

So, you're thinking about switching your auto insurance. After all, you've seen ads from all sorts of companies offering huge discounts. But exactly how much can you save by switching?

You might be considering Hanover or Michigan as potential options, but which one will save you the most?

Looking at nationwide averages, Hanover has average rates that are about 45% per month more expensive than those from Michigan.

That being said, Michigan may not be the most affordable or best option for every driver out there. Car insurance companies vary their rates depending on things like how old you are, how clean your driving record is, where you live, how good your credit score is, and all sorts of other factors. So, at the end of the day, prices from each company will differ quite a bit from person to person.

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

Hanover or Michigan: Average Car Insurance Rates by State

Hanover and Michigan only compete against each other in Michigan, where Michigan offers the cheaper average rates. For Michigan residents, Michigan offers auto insurance for $480 monthly on average. Hanover's average prices come out to be over 70% more expensive, at 1164 a month.

But there's more to 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 premiums. Continue reading to learn more about how other factors will affect your rates.

Which is the Best Company For Young Drivers?

You might already know that teen drivers usually 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.

But still, even with seemingly sky-high rates, teen drivers can still find ways to save money. For example, 18-year-old drivers pay an average of more than $500 less a month by choosing Michigan over Hanover.

Even so, with both companies, you'll see your premiums drop significantly once you turn 25. Michigan offers the steepest reduction, with 25-year-olds paying less than a third of what 18-year-old drivers are charged. Hanover's average prices lower over 60% during that same period.

Which is the Best Company for Retired Drivers?

Drivers around retirement age typically enjoy some of the cheapest car insurance rates you'll ever 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.

So, which company offers the best prices to retired drivers? Michigan gets the edge, with premiums for drivers 65 and older more than 45% less expensive than the national average for Hanover.

Which is the Best Company for Married Drivers?

You may not be aware, but auto insurance rates tend to be cheaper for married drivers than they are for those who are single. That's generally because married policyholders tend to own and insure multiple cars, which can often earn you a discount.

When it comes to relationship status, Michigan is the clear winner for single policyholders, with prices around $417 per month more affordable than Hanover, on average. The advantage for married couples with Michigan is also obvious, where drivers save over $300 a month.

Hanover vs. Michigan: Average Rates by Gender

Men are statistically more likely than women to get into collisions and file an insurance claim, which means they'll usually end up paying more for car insurance than women.

Men normally pay about $60 per month more than women with Hanover; and with Michigan, everyone ends up paying the same monthly premiums regardless of gender.

Looking at the data for each carrier specifically, Michigan comes out on top for both men and women, with average prices 46% less for men and 42% cheaper for women.

Hanover or Michigan: 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, insurance can be pretty complicated. Everyone needs auto 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 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 includes comprehensive and collision coverages that protect your own vehicle, alongside liability coverage).

If you're looking for state minimum limits for liability insurance, Michigan typically offers significantly less expensive rates of $312 compared to Hanover's $509. When it comes to full coverage policies with similar limits, Michigan again has the edge, with policies around $500 a month more affordable than Hanover, on average.

Is Hanover or Michigan Better for Drivers with Spotty Records?

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

It's no secret secret that tickets and at-fault accidents lead to higher prices, but which company -- Hanover or Michigan -- has the most affordable rates for drivers with less-than-perfect records?

Which Company is Best for Drivers with Speeding Tickets?

Hanover policyholders can expect their prices to go up an average of $221 per month if they get a ticket, while Michigan generally raises premiums about $205 a month, on average.

But Michigan has cheaper rates for drivers in both categories. Drivers with a clean record can save around $336 per month and drivers with a speeding ticket can save about $352 a month with Michigan Insurance Company.

Which Company is Best for Drivers After an Accident?

Hanover drivers who get in a collision can expect to see their premiums increase by just under $350, while those who have insurance through Michigan will see around a $150 increase.

Overall, the less expensive prices come from Michigan, with monthly rates averaging $431 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 accident or ticket when it comes to your insurance bill. For example, Michigan increases average prices by just under $450 per month -- that's over a 60% increase.

If you have a DUI on your record and are looking for more affordable rates, Michigan tends to be the much more affordable option with average premiums of $723 per month compared to 1013 from Hanover.

How does Credit Score Impact Hanover and Michigan Rates?

Did you know that many auto insurance companies take your credit score into account when calculating rates? This isn't always the case (for example, are two states that ban the practice entirely), but it might come into play for many policyholders.

Car insurance carriers argue that someone with bad credit is less likely to pay their bills on time, which makes them riskier to insure. Because of that, drivers with bad credit will often be forced to pay more.

Looking specifically at Michigan and Hanover, which carrier has the cheapest prices for policyholders at different credit levels?

Which Company is Best for Drivers with Good Credit?

Michigan is one of a small number of states that bans insurance companies from using credit scores to determine premiums. And since Michigan is only available in Michigan, there is no data available on how credit score impacts rates because it's not a factor at all. This may be a good thing, since Hanover and other carriers tend to raise prices quite a bit in other states if you don't have excellent credit.

Which Company is Best for Drivers with Bad Credit?

If you have less-than-stellar credit and live in Michigan, the good news is it won't cost you extra when it comes to auto insurance. As you can see, poor credit can really cost Hanover drivers in other states, but no need to worry if you live in Michigan.

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

How much you drive can have a large impact on how much car insurance companies will charge for coverage. That's because the fewer miles you drive, the less likely you are to get into an accident and cause an insurance claim.

Michigan tends to be the less expensive option for both drivers who put 6,000 miles on their vehicles every year, as well as those who average twice that figure. Hanover's average premiums for drivers with 6,000 annual miles come in more than 45% more expensive than Michigan. Those who drive 12,000 miles yearly can expect to pay over 40% more with Hanover over Michigan.

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

Where your home is can have a substantial impact on your monthly auto insurance bill. Normally, drivers who live in heavily-populated urban areas will pay quite a bit more than rural policyholders because there are a lot more cars on the road in those areas, which increases the chances of an accident.

Michigan boasts the cheapest average premiums for drivers in all areas, regardless of if they're urban, suburban, or rural.

For drivers in urban ZIP codes, Michigan offers rates about $493 a month compared to Hanover's $966. People who live in suburban ZIP codes can expect to pay around $488 a month for Michigan and $842 for Hanover. Lastly, those in rural areas tend to get the most affordable premiums from both carriers, with average monthly prices coming in at $460 and $750 for Michigan and Hanover respectively.

Hanover vs. Michigan Discounts

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

But where do you even start? With so many discounts out there, it may seem challenging to find all the of the ones you qualify for.

Below, we've broken down all of the different discounts offered by both Hanover and Michigan so that you can easily see which company offers the most discounts and see which ones you might be able to take advantage of.

Overall, Hanover has the advantage when it comes to total number of discounts. Michigan offers a grand total of 17 discounts, while Hanover has 21.

There are a couple discounts both companies offer, but Hanover also offers annual mileage discounts, distant student discounts, driver training discounts, and more that Michigan does not.

On the flip side, Michigan has a couple unique discounts of its own -- COVID-19 relief discount, family car discounts, family discounts, and more.

Final Thoughts: Is Hanover or Michigan Best for You?

So, you've seen how different variables can affect your car insurance rates. We've shown you all the discounts each company offers, too. That's all well and good, but at the end of the day, is Hanover or Michigan the right company for you and your specific profile and needs?

Michigan might be best for you if....

• You have received a ticket within the last few years.
• You live in an urban area.
• You have a short commute.

Hanover might be best for you if...

• You want to save extra money with discounts.

We hope this guide helps you get a better idea of the difference between Hanover and Michigan. We also hope we've given you the information you need to make the best 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 insurance policy is to compare quotes from multiple carriers, not just Hanover and Michigan. Luckily, Compare.com makes it easy for you to do just that. Simply enter your ZIP codes below and get multiple quotes from some of the best auto insurance companies in your area, all for free.

Hanover vs. Michigan FAQs

Is Hanover or Michigan cheaper?

Looking just at the national average premiums, Michigan is the cheaper of the two carriers, offering average rates of $480 per month compared to $853 for Hanover. However, Michigan won't necessarily be the lowest carrier for each driver, since there are a variety of different factors that come into play when it comes to your car insurance cost.

Who is better, Hanover or Michigan?

Unfortunately, the real answer is "it depends.". One company is not necessarily "better" for everyone -- it all comes down to what your unique insurance profile looks like. For example, Michigan offers more affordable prices for drivers with a recent DUI, while Hanover is less expensive for drivers with excellent credit.

Why do Hanover and Michigan offer me different rates?

Auto insurance companies take a look at several different variables when determining the premiums they charge policyholders. Things such as gender, age, your driving record, where you live, and sometimes even things like your credit score can all be taken into consideration. Both Hanover and Michigan calculate rates using different formulas, so each one will most likely offer different prices. The only real way to see which carrier is the cheapest for you is by comparing personalized quotes from many different carriers.

How do I know if Hanover or Michigan 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, sites like Compare.com make it easy for you to do just that. Just enter your ZIP code and you'll get free quotes from dozens of the best car insurance carriers in your area. With those, you can guarantee you're getting the most affordable price. And who knows, the best carrier for you might not be Hanover or Michigan 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.