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

Quick Facts

• Looking at the national averages for insurance, Penn National offers significantly more affordable rates than Hanover
• Hanover offers more discounts than Penn National Insurance
• Penn National tends to be a much cheaper option for drivers who have received a ticket within the last few years

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

Are you considering a new insurance policy? You've probably seen commercials and billboards from companies offering huge discounts, but exactly how much money can you save by switching?

You've maybe even narrowed your search down to Hanover or Penn National as potential options, but which company will save you the most?

Looking at nationwide averages, Hanover is quite a bit more expensive than Penn National, with prices averaging $853 per month compared to just $218 with Penn National.

However, that doesn't mean Penn National will necessarily be less expensive than Hanover for every driver. Auto insurance companies vary their premiums depending on things like where you live, how good your credit score is, how old you are, how clean your driving record is, and a variety of other factors, so rates could change drastically from person to person.

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

Hanover or Penn National: Average Car Insurance Rates by State

Hanover and Penn National only compete against each other in one states, with Penn National offering cheaper rates to the average driver in all of them. New Jersey has the most noticable difference, where Penn National prices are over 70% less expensive than car insurance premiums at Hanover.

There are plenty of other factors that go into your insurance bill than just where you live. Read on to find out more.

Which is the Best Company For Young Drivers?

Teen drivers will almost always have the most expensive car insurance rates of any other group of drivers. The reason is that young, inexperienced drivers are statistically much more likely to cause collisions and other accidents that will result in an insurance claim.

Even so, that doesn't mean teen drivers can't still save money on their insurance. Just look at the table above -- where 18-year-old drivers who have Penn National for their auto insurance pay more than $500 less than those who use Hanover.

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

Which is the Best Company for Retired Drivers?

When it comes to car insurance, patience and experience pay off, with drivers around retirement age paying some of the lowest rates you'll ever see.

So, which carrier offers the best prices to retired drivers? Penn National gets the edge here, with average rates coming in at about $163 per month compared to Hanover's $613.

Which is the Best Company for Married Drivers?

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

When it comes to relationship status, Penn National is the clear winner for single policyholders, with prices around $749 a month more affordable than Hanover, on average. The advantage for married couples with Penn National is also obvious, where drivers save almost 75% per month.

Hanover vs. Penn National: Average Rates by Gender

Men tend to pay more for insurance than women. This is because men are statistically more likely than women to cause a collision and get into accidents, which leads to increased risk for insurers and, therefore, higher rates.

On average, men see prices about 7% a month higher with Hanover, while with Penn National, the difference is closer to 2% per month.

When it comes to the most affordable premiums for each gender, Penn National comes out on top for both men and women. On average, male drivers save about $663 a month and women save around $608 with Penn National compared to the average Hanover policyholder.

Hanover or Penn National: 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 a variety of different coverages that account for a bunch of 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.

That being said, most policies end up falling into two different types of coverage -- liability only (that covers bodily injury and property damage for other drivers if you cause a collision) and full coverage (which usually refers to having comprehensive and collision coverages in addition to what you get with liability).

If you're looking for state minimum liability insurance, Penn National normally offers significantly cheaper rates of $144 compared to Hanover's $509. When it comes to full coverage policies with similar limits, Penn National again has the edge, with policies about $500 per month more affordable than Hanover, on average.

Is Hanover or Penn National Better for Drivers with Spotty Records?

You've probably seen plenty of commercials from car insurance companies 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 at-fault accidents and tickets lead to higher prices, but which company -- Hanover or Penn National -- has the cheapest premiums for drivers with spotty records?

Which Company is Best for Drivers with Speeding Tickets?

Hanover policyholders can expect their prices to go up an average of $221 a month if they get a ticket, while Penn National generally raises rates around $40 per month, on average.

However, Penn National is normally the less expensive option for both drivers who have clean records and those with a recent speeding ticket. Drivers with a clean record can save about $478 a month and drivers with a ticket can save around $659 per month with Penn National Insurance.

Which Company is Best for Drivers After an Accident?

Hanover drivers who get in an accident can expect to see their premiums increase by just under $350, while those who have insurance through Penn National will see about a $65 increase.

Overall, drivers who use Penn National end up with the cheaper prices after an accident, with monthly rates averaging $206 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 insurance bill -- usually a lot more than a collision or speeding ticket. For example, Hanover increases average prices by just under $400 a month -- that's just under a 40% increase.

If you have a DUI on your record and are looking for more affordable premiums, Penn National tends to be the much more affordable option with average rates of $346 a month compared to 1013 from Hanover.

How does Credit Score Impact Hanover and Penn National Rates?

In many cases, your credit score can be used as one of the factors to calculate your monthly car insurance prices. This isn't always the case (for example, are two states that ban the practice entirely), but it does affect lots of policyholders out there.

Auto 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.

So, which carrier offers the best rates for policyholders with poor, average, or good credit?

Which Company is Best for Drivers with Good Credit?

If you have a solid credit score, you'll usually find a better deal with Penn National. Drivers with "excellent" credit can save over 25% compared to Hanover, and those with "good" scores can also expect to see savings -- around $344 or 65% cheaper each month.

Which Company is Best for Drivers with Bad Credit?

Penn National typically offers lower prices than Hanover when it comes to drivers with less-than-perfect credit. Drivers with "fair" credit pay about $648 per month less with Penn National compared to Hanover, and those with "poor" scores generally save an average of around 1584 monthly.

Is Hanover or Penn National 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 insurance cost. Typically, 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.

As you can see in the table above, annual mileage doesn't have much of an impact on how much Penn National 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, Penn National is the cheaper option for drivers in both categories.

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

Where you park your vehicle can have a substantial impact on your monthly car insurance payment. Generally, if you live in a rural area with fewer cars on the road, you'll pay a little less for insurance, while the opposite is true for people in urban areas.

When comparing these two companies side-by-side, Penn National typically comes out as the lowest option for drivers in every type of area, no matter if it's urban, suburban, or rural.

Policyholders in rural ZIP codes see the cheapest prices from both carriers, but Penn National comes out on top with average premiums around $165 per month. Penn National also has more affordable average rates for drivers in urban and suburban ZIP codes -- a 72% and 75% a month respective difference when compared to Hanover policyholders in similar areas.

Hanover vs. Penn National Discounts

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

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

Below, we've taken a look at all of the different discounts Hanover and Penn National offer their customers so that you can easily see which company offers the most discounts and, therefore, the biggest savings.

Overall, Hanover has the advantage when it comes to total number of discounts. Penn National offers a grand total of 16 discounts, while Hanover has 21.

There are a couple discounts both companies offer, but Hanover also offers annual mileage discounts, education discounts, EFT discounts, and more that Penn National does not.

On the flip side, Penn National has a couple unique discounts of its own -- added pip option discounts, pennid discounts, and renewal discounts.

Final Thoughts: Is Hanover or Penn National Best for You?

You've seen the role certain variables have on your car insurance and the different discounts carriers offer. That's all well and good, but at the end of the day, which carrier is the right fit for you?

Penn National might be best for you if....

• You have a DUI charge on your record.
• You have above-average credit.
• You live in a rural area.

Hanover might be best for you if...

• You're looking for discounts -- Hanover has the most.

We hope this guide helps you get a good idea of the differences between Hanover and Penn National. 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 best way to make sure you're getting the best deal on your insurance policy is to compare quotes from multiple companies, not just Hanover and Penn National. Luckily, Compare.com makes it easy for you to do just that. Just enter your ZIP code below and get multiple free quotes from some of the best auto insurance carriers in your area, all in just a few minutes.

Hanover vs. Penn National FAQs

Is Hanover or Penn National cheaper?

Looking just at the national average prices, Penn National is the less expensive of the two companies, offering average rates of $218 per month compared to $853 for Hanover. But Penn National won't necessarily be the lowest company for every driver, since there are a range of different factors (things like age, gender, driving record, etc.) that play a role in how much you pay.

Who is better, Hanover or Penn National?

Sadly, the only answer we can give you is "it depends.". Neither carrier is "better" for everyone -- it all depends on what your unique insurance profile looks like.

Why do Hanover and Penn National offer me different rates?

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

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

The only way to find the auto insurance carrier that's right for you is by getting quotes from several carriers 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 car insurance companies in your area. That way, you can guarantee you're getting the lowest premium. And who knows, the best company for you might not be Hanover or Penn National 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.