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

Quick Facts

• Looking at the national averages for insurance, Preferred Mutual offers significantly cheaper rates than Hanover
• Hanover may help you save more money -- they offer more discounts than Preferred Mutual
• Preferred Mutual has less expensive premiums for residents of suburban areas

Hanover or Preferred Mutual: Which Company has the Cheapest Car Insurance?

So, you're thinking about switching to a new insurance policy. You've probably seen commercials and billboards from companies offering substantial savings, but exactly how much money can you save by switching?

You've maybe even narrowed your search down to Hanover or Preferred Mutual, but between the two, which one has more affordable rates for car insurance?

As you can see, Hanover has average rates that are around 35% a month more expensive than those from Preferred Mutual when looking at the national average rates for auto insurance.

But that doesn't mean Preferred Mutual will necessarily be cheaper than Hanover for each driver. Car insurance carriers use a ton of complex algorithms to determine prices, so depending on where you live or how clean your driving record is (among a lot of other factors), you could see wildly different premiums from the ones above.

So, if you want to find out which of Hanover or Preferred Mutual is really the best for you, keep reading to see average prices for each carrier broken down by many different rate factors.

Hanover vs. Preferred Mutual: Average Car Insurance Rates by State

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

That being said, there are plenty of other factors that go into your insurance cost than just your home state. 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 group out there on the road. Usually, that's because teen drivers are statistically much more likely to get into an accident that results in an insurance claim, making them much riskier to insure.

However, that doesn't mean teen drivers can't still save money on their insurance. For example, 18-year-old drivers pay an average of over 45% less per month by choosing Preferred Mutual over Hanover.

That being said, both carriers will offer you dramatically lower premiums once you turn 25. For example, average prices for Hanover policyholders decrease about $500 and Preferred Mutual's rates reduce more than $500 over that time.

Which is the Best Company for Retired Drivers?

When it comes to auto insurance, patience and experience pay off, with drivers around retirement age paying some of the most affordable premiums out there.

So, which company offers the best prices to retired drivers? Preferred Mutual gets the edge here, with average premiums coming in at around $398 a month compared to Hanover's $613.

Which is the Best Company for Married Drivers?

Married drivers tend to get slightly cheaper car insurance rates than those who are single. This usually boils down to married policyholders having several vehicles on their policy -- something several auto insurance companies will reward with discounts.

For single drivers, the difference in average prices between these two carriers is significant, with Preferred Mutual premiums coming in at a third less than Hanover's. The advantage is also clear for married couples - Preferred Mutual offers the cheapest average prices.

Hanover or Preferred Mutual: Average Rates by Gender

Men are statistically more likely than women to get into collisions and get tickets, which means they'll typically end up paying more for insurance than women.

With Hanover, women generally pay about 7% a month less than men, and around 3% less with Preferred Mutual when compared to their male counterparts.

When it comes to the lowest rates for each gender, Preferred Mutual comes out as the cheapest option for both genders. On average, women save about $289 per month and men save about $333 with Preferred Mutual compared to the average Hanover policyholder.

Hanover vs. 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.

Auto insurance isn't the easiest topic to understand. There are so many different limits and terms that it can make it pretty confusing to find the right policy for you.

The two most common policies end up falling into two different types of coverage -- liability coverage (which covers the other party's property damage and injuries if you cause a collision) and full coverage (which includes two additional coverages -- collision and comprehensive -- alongside liability coverage).

Looking specifically at state minimum liability limits, Preferred Mutual has the significant edge, with average monthly premiums coming in at $234. If you want a full coverage policy with the same state minimum limits, Preferred Mutual again has the edge, with policies averaging around $850 a month to Hanover's 1196.

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

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

At-fault collisions and speeding tickets will most likely raise your prices, but is Hanover or Preferred Mutual less expensive for drivers with spotty records?

Which Company is Best for Drivers with Speeding Tickets?

Policyholders who use Hanover for their insurance can normally expect their monthly bill to go up about 26% after getting a speeding ticket. Preferred Mutual policyholders can expect a less drastic increase of around 1%.

Even so, Preferred Mutual is typically the cheaper option for drivers both with a ticket and with a clean record, offering rates that are $228 and $446 less expensive, respectively, compared to Hanover Insurance.

Which Company is Best for Drivers After an Accident?

Hanover drivers who get in an accident can expect to see their prices rise by just under 35%, while those who have insurance through Preferred Mutual will see about a 20% increase.

At the end of the day, the more affordable premiums come from Preferred Mutual, with average rates coming in at $486 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 car insurance bill -- usually a lot more than a collision or speeding ticket. Preferred Mutual drivers usually see a 57% raise in their insurance premiums after a DUI charge, while Hanover will normally increase prices by around 39%.

But if you end up with a DUI charge and are looking for more affordable premiums, Preferred Mutual tends to be less expensive for the average driver, with monthly premiums coming in at about $902 to Hanover's 1013.

How does Credit Score Impact Hanover and Preferred Mutual Rates?

Did you know many auto insurance carriers take into account your credit score when determining rates? Certain states and companies do not allow for credit score to be used as an auto insurance factor, but it might come into play for a lot of policyholders.

Insurance carriers argue that someone with good credit is more likely to pay their bills on time, which makes them less risky to insure. Because of that, drivers with good credit will often be rewarded with cheaper prices.

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

Which Company is Best for Drivers with Good Credit?

If you have solid credit, Hanover will generally reward you the most. For drivers with "excellent" credit scores, Hanover comes in more than 56.09 more affordable. Drivers with "good" credit scores normally save around 8% with Hanover compared to average prices from Preferred Mutual.

Which Company is Best for Drivers with Bad Credit?

Preferred Mutual typically offers lower premiums than Hanover when it comes to drivers with bad credit. Drivers with "fair" credit pay about 24% per month less with Preferred Mutual compared to Hanover, and those with "poor" scores typically save an average of around 56% per month.

Is Hanover 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 considerable impact on how much car insurance companies will charge for coverage? Generally, the more milage you drive, the more you can expect to pay for auto insurance.

Preferred Mutual tends to be the cheaper option for both remote workers and those taking short commutes. Preferred Mutual's average prices for drivers with 6,000 annual miles come in about $311 less expensive than Hanover. Those who drive 12,000 miles every year can expect to pay around $310 less with Preferred Mutual over Hanover.

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

Where you park your car can have a sizable impact on your monthly car insurance bill. Usually, those who live in rural areas will pay less than policyholders in urban areas since there are a lot fewer vehicles on the road where they live, which reduces the chances of an accident.

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

If you live in a rural area, you can expect to pay about $253 monthly with Preferred Mutual and $750 with Hanover. Drivers in suburban ZIP codes pay a monthly price of around $472 with Preferred Mutual compared to $842 with Hanover. In urban areas, Preferred Mutual's average premiums are about $902 while Hanover offers rates around $966.

Hanover vs. Preferred Mutual Discounts

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

But with what seems like a million different discounts out there, it can be challenging to nail down the company that has the most discounts for your unique driver profile and to find all the discounts you're eligible for.

Luckily, we did the hard work for you and looked at all of the different discounts Hanover and Preferred Mutual offer their customers so that you can easily see which company offers the most discounts and see which ones you might be able to take advantage of.

Hanover blows Preferred Mutual away when it comes to the sheer amount of discounts available, offering 21 different discounts to Preferred Mutual's 14.

There are a couple discounts both carriers offer, but Hanover also offers discounts for advance quote, distant student, driver training, and more.

On the other hand, Preferred Mutual has a proprietary discount of their own -- a new business discounts.

Final Thoughts: Is Hanover or Preferred Mutual Best for You?

You've seen the role certain variables have on your auto insurance and the different discounts companies offer. But, at the end of the day, is Hanover or Preferred Mutual the best fit for you?

Preferred Mutual might be best for you if....

• You don't have any speeding tickets, DUIs, or at-fault accidents on your record.
• You're looking for the best prices on liability only coverage.
• You live in a rural area.

Hanover might be best for you if...

• You already have a great credit score.
• You care about discounts (Hanover offers the most).

Hopefully, this guide helps you get a better idea of the difference between Hanover and Preferred Mutual. We also hope we've given you the information you need to make the best decision about your insurance.

At the end of the day, the best way to make sure you're getting the best deal on your car insurance policy is to compare quotes from several carriers, not just Hanover and Preferred Mutual. Luckily, Compare.com does all the hard work for you. Just enter your ZIP code below and get free quotes from dozens of the top auto insurance companies in your area, all in just a few minutes.

Hanover vs. Preferred Mutual FAQs

Is Hanover or Preferred Mutual cheaper?

Preferred Mutual is the more affordable of the two carriers when looking at national average premiums, with policies averaging $542 a month with Preferred Mutual and $853 for Hanover. That being said, that doesn't mean Preferred Mutual will be the most affordable carrier for everyone, since there are a range of different factors that come into play when it comes to your car insurance payment.

Who is better, Hanover or Preferred Mutual?

Unfortunately, the only answer we can give you is "it depends.". No one company is necessarily "better" for each policyholder -- it all depends on what your unique auto insurance profile looks like. For example, Hanover is less expensive for drivers with excellent credit, while Preferred Mutual offers cheaper prices for drivers with a recent DUI.

Why do Hanover and Preferred Mutual offer me different rates?

Insurance companies use lots of different variables when calculating the rates they charge. Things such as your driving record, gender, where you call home, age, and sometimes even things like your credit score can all come into play. Both Hanover and Preferred Mutual use different formulas, so it's likely they'll offer different premiums. The best way to determine which carrier is the lowest for you is by comparing personalized quotes from a bunch of different carriers.

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

The only way to find the car 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 information once and you'll get quotes from dozens of your local top auto insurance carriers for free. With those, you can guarantee you're getting the best rate. And maybe you'll find that the best carrier for you isn't Hanover or Preferred Mutual 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.