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

Quick Facts

• Looking at the national averages for insurance, Njm offers significantly cheaper rates than Hanover
• Hanover may help you save more money -- they offer more discounts than NJM Insurance Group
• Njm offers more affordable prices for policyholders who have a clean record

Hanover or Njm: Which Company has the Cheapest Car Insurance?

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

You've maybe even narrowed your search down to Hanover or Njm as potential options, but which company will offer you more affordable rates?

Looking at nationwide averages, Njm is quite a bit cheaper than Hanover, with prices averaging $137 a month compared to $853 with Hanover.

Even so, that doesn't mean Njm will necessarily be less expensive than Hanover for every driver. Car insurance carriers use all sorts of complex algorithms to determine premiums, so depending on how good your credit score is or how clean your driving record is (among quite a few other factors), you could see wildly different rates from the ones above.

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

Hanover vs. Njm: Average Car Insurance Rates by State

Hanover and Njm only compete against each other in New Jersey, where Njm offers the cheaper average prices. Njm drivers tend to pay about $659 per month less on average compared to drivers who use Hanover for their auto insurance.

That being said, there are plenty of other factors that go into your insurance cost than just where you call home. Continue reading to learn more about how other variables will affect your rates.

Which is the Best Company For Young Drivers?

Teen drivers will almost always have the most expensive auto insurance premiums of any other group of drivers. It's because teen drivers are statistically much more likely to cause collisions and other accidents that will result in an insurance claim.

But still, even with seemingly sky-high rates, teen drivers can still find ways to save money. Just look at the table above -- where 18-year-old drivers who have Njm for their car insurance pay over 85% less than those who use Hanover.

That being said, with both companies, you'll see your prices decrease significantly once you turn 25. For example, average rates for Hanover policyholders drop more than 60% and Njm's premiums reduce over 50% over that time.

Which is the Best Company for Retired Drivers?

Drivers around retirement age typically enjoy some of the lowest insurance prices you can find. After all, they've likely been driving for quite some time, which generally decreases their chances of collisions and other infractions that can raise rates.

When looking at Hanover and Njm specifically, which carrier is best for retired drivers? Njm gets the edge here, with average premiums coming in at around $96 per month compared to Hanover's $613.

Which is the Best Company for Married Drivers?

You may not be aware, but auto insurance prices tend to be cheaper for married couples than they are for single drivers. This usually boils down to married drivers having more than one vehicle on their policy -- something several car insurance carriers will reward with discounts.

For single policyholders, the difference in average rates between these two companies is significant, with Njm premiums coming in at about a quarter of Hanover's. For married policyholders, the advantage is clear again - Njm has the edge when it comes to average prices.

Hanover or Njm: Average Rates by Gender

Because women are less likely to get tickets and get into accidents, they are less likely to file a claim with insurance. So, insurance carriers will tend to offer women more affordable premiums.

Men usually pay around $60 a month more than women with Hanover, but with Njm, the difference is closer to $1 per month.

Looking at the data for each company specifically, Njm comes out on top for both men and women. On average, male drivers save about $746 a month and women save about $687 with Njm compared to the average Hanover policyholder.

Hanover vs. Njm: 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 insurance can be a complicated subject for most people. There are multiple different coverages that account for many different things. Some protect you and your car, while others only provide coverage for other people's property and health if you cause a collision.

However, most policies that drivers look at fall into two categories -- liability coverage (which covers the other party's property damage and injuries if you cause an accident) and full coverage (which normally refers to having collision and comprehensive coverages alongside what you get with a liability policy).

Looking specifically at state minimum liability limits, Njm has the significant edge, with average monthly rates coming in at $92. If you want a full coverage policy with the same state minimum limits, Njm again has the edge, with policies averaging around $181 per month to Hanover's 1196.

Is Hanover or Njm 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.

It's no secret secret that speeding tickets and accidents lead to higher premiums, but which carrier -- Hanover or Njm -- has the cheapest rates for drivers with spotty records?

Which Company is Best for Drivers with Speeding Tickets?

Policyholders who use Hanover for their insurance can typically expect their monthly bill to go up about 26% after getting a speeding ticket. Njm policyholders can expect a less drastic increase of around 19%.

But Njm is usually the more affordable option for drivers both with clean records and with a ticket, offering prices that are $495 and $687 less expensive, 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 rates rise by just under 35%, while those who have insurance through Njm will see about a 0% increase.

At the end of the day, drivers who use Njm end up with the cheaper prices after an accident, with average prices coming in at $122 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 auto insurance bill -- generally a lot more than an accident 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 prices, Njm tends to be more affordable for the average driver, with monthly premiums coming in at around $151 to Hanover's 1013.

How does Credit Score Impact Hanover and Njm Rates?

In many cases, your credit score can be used as one of the factors to calculate your monthly insurance premiums. Certain states and carriers do not allow for credit score to be used as a car insurance factor, but it does affect many policyholders out there.

Auto insurance companies argue that those with poor credit scores are less likely to pay their bills on time every month, which raises the risk involved on their end, while the opposite is true for those with good credit.

Looking specifically at Njm and Hanover, which carrier has the best rates for drivers at different credit levels?

Which Company is Best for Drivers with Good Credit?

If you have great credit, Njm will normally reward you the most. For policyholders with "excellent" credit scores, Njm comes in just under 54.55 cheaper. Drivers with "good" credit scores generally save about 78% with Njm compared to average premiums from Hanover.

Which Company is Best for Drivers with Bad Credit?

Njm typically offers lower rates than Hanover when it comes to drivers with less-than-perfect credit. Drivers with "fair" credit pay around 84% per month less with Njm compared to Hanover, and those with "poor" scores normally save an average of about 90% a month.

Is Hanover or Njm 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 car insurance payment. Usually, the more milage you drive, the more you can expect to pay for auto insurance.

Njm tends to be the less expensive option for both remote workers and those taking short commutes. Njm's average prices for drivers with 6,000 annual miles come in around 85% more affordable than Hanover. Those who drive 12,000 miles annually can expect to pay about 83% less with Njm over Hanover.

Hanover or Njm: Compare Rates for Urban, Suburban, and Rural Drivers

Where you park your car can have a big impact on your monthly car insurance bill. Typically, drivers who live in heavily-populated urban areas will pay quite a bit more than rural policyholders since there are a lot more vehicles on the road where they live, which increases the chances of an accident.

Njm boasts the lowest average prices for drivers in every type of area, no matter if it's urban, suburban, or rural.

For drivers in urban ZIP codes, NJM Insurance Group's average premiums are around $805 less than Hanover Insurance. People who live in suburban areas pay about $711 less with Njm compared to Hanover. Those in rural areas can expect to save around $633 with Njm compared to Hanover.

Hanover vs. Njm 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. That's where car insurance discounts comes into play.

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

Luckily, we did the hard work for you and broke down all of the different discounts offered by both Hanover and Njm so that you can find the one that has the most discounts and, therefore, the largest savings.

Hanover knocks Njm out of the park when it comes to the sheer number of discounts available, offering 21 different discounts to Njm's 14.

Both carriers offer many of the same discounts -- like ABS discounts, discounts for being a defensive driver, EFT discounts, and paid in full discounts -- but Hanover also offers discounts for advance quote, annual mileage, distant student, and more.

On the other hand, Njm has a few proprietary discounts of their own for things like employee discounts, full coverage discounts, new business discounts, and more.

Final Thoughts: Is Hanover or Njm Best for You?

So, we've broken down the average rates for many of the variables insurance companies look at, and we've shown you all the discounts each company offers. But, at the end of the day, which carrier is the best carrier for you and your specific profile and needs?

Njm might be best for you if....

• You haven't received any speeding tickets or been in a collision in the last few years.
• Your home is in a busy urban area.
• You live in a rural neighborhood.

Hanover might be best for you if...

• You're looking for the company with the most discounts.

Hopefully, this guide helps you get a better idea of the difference between Hanover and Njm. We also hope we've given you the information you need to make the best decision when it comes to your auto 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 car insurance -- comparing quotes from a handful of carriers, not just Hanover and Njm. Luckily, Compare.com makes it easy for you to do just that. Just enter your ZIP code below and get free quotes from dozens of top auto insurance companies in your area, all in just a few minutes.

Hanover vs. Njm FAQs

Is Hanover or Njm cheaper?

Njm is the cheaper of the two carriers when looking at national average premiums, with policies averaging $137 a month with Njm and $853 for Hanover. However, that doesn't mean Njm will be the cheapest carrier for each policyholder, since there are a bunch of different factors that come into play when it comes to your insurance payment.

Who is better, Hanover or Njm?

Sadly, the real answer is "it depends.". Neither company is "better" for everyone -- it all depends on what your unique auto insurance profile looks like.

Why do Hanover and Njm offer me different rates?

Car insurance companies use quite a few different variables when determining the prices they charge. Factors like where you live, age, where your home is, gender, and sometimes even things like your credit score can all come into play. Both Hanover and Njm calculate premiums differently, so it's likely they'll offer different rates. The best way to determine which carrier is the most affordable for you is by comparing personalized quotes from several different carriers.

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

The only way to find the insurance company that's right for you is by getting quotes from multiple 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 quotes from dozens of your local top car insurance carriers for free. That way, you can guarantee you're getting the best rate. And maybe you'll find that the best carrier for you isn't Hanover or Njm 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.