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

Quick Facts

• Based on national averages for car insurance, Kemper offers significantly less expensive prices than Preferred Mutual
• Kemper offers more affordable premiums for drivers who have received a ticket within the last few years
• Preferred Mutual offers more affordable prices for residents in Massachusetts and New York

Kemper vs. Preferred Mutual: Which Company has the Cheapest Car Insurance?

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

You've maybe even narrowed your search down to Kemper or Preferred Mutual as your top options, but which one will save you the most?

Looking at nationwide averages, Kemper has average rates that are about 55% per month cheaper than those from Preferred Mutual.

That being said, that doesn't necessarily mean Kemper will be the more affordable option for each driver. After all, insurance companies can offer drastically different rates to each driver depending on rating factors like your credit score, your driving record, where you call home, or even your age (among other things). So, at the end of the day, rates from every carrier will differ quite a bit from person to person.

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

Kemper or Preferred Mutual: Average Car Insurance Rates by State

Kemper and Preferred Mutual only compete against each other in one states, with Preferred Mutual offering less expensive rates to the average driver in all of them. New York has the most noticable difference, where Preferred Mutual prices are over 20% more affordable than car insurance premiums at Kemper.

But there's more to auto insurance than just your home state. As we mentioned above, there's a lot of things that go into how insurance carriers calculate your prices. Continue reading to learn more about how other factors will affect your rates.

Which is the Best Company For Young Drivers?

Young drivers -- especially teens -- generally pay a lot for car insurance compared to older drivers. It's because young, inexperienced drivers are statistically much more likely to get into accidents since they have less experience on the roads.

However, that doesn't mean that teen drivers have to just accept sky-high auto insurance rates. Just look at the table above -- where 18-year-old drivers who have Kemper for their insurance pay more than $500 less than those who use Preferred Mutual. It's worth noting that Kemper offers auto insurance in 15 different states compared to Preferred Mutual's two, which can skew the average prices a bit, but the difference here is still considerable.

But both companies will decrease rates by the time drivers turn 25. Preferred Mutual offers the steepest drop, with 25-year-olds paying less than half what 18-year-old drivers are charged. That being said, Kemper still has the most affordable premiums at $213 monthly.

Which is the Best Company for Retired Drivers?

Once you approach retirement age, you'll normally enjoy the lowest car insurance prices out there. You've been on the road for years, and all that experience pays off when it comes to your monthly rates for insurance.

When looking at Kemper and Preferred Mutual specifically, which carrier is best for retired drivers? Kemper gets the edge here, with average premiums coming in at around $179 per month compared to Preferred Mutual's $398.

Which is the Best Company for Married Drivers?

Did you know that auto insurance prices are typically cheaper for married drivers than they are for single policyholders? That's because policies for married couples usually cover several cars, which several carriers will offer you a discount for.

When it comes to relationship status, Kemper is the clear winner for single drivers, with premiums about $343 a month less expensive than Preferred Mutual, on average. The advantage for married policyholders with Kemper is also obvious, where drivers save nearly 60% per month.

Kemper vs. Preferred Mutual: Average Rates by Gender

Because men are more likely to get into accidents and get speeding tickets, they have a higher chance of filing a claim with insurance. Therefore, men typically pay more for car insurance than women.

Typically, women see rates almost $20 a month more affordable with Kemper, and around $16 less with Preferred Mutual.

Looking at overall affordability, Kemper comes out on top for both men and women, with average prices $306 less for men and $309 cheaper for women.

Kemper or 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.

Insurance isn't the easiest topic to understand. There are a range of different coverages that account for a variety 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.

The two most common policies that many drivers look at fall into two categories -- liability only (that covers bodily injury and property damage for other drivers and passengers if you cause a collision) and full coverage (which includes two additional coverages -- comprehensive and collision -- in addition to liability).

If you're looking for state minimum limits for liability insurance, Kemper normally offers significantly cheaper premiums of $139 compared to Preferred Mutual's $234. When it comes to full coverage policies with similar limits, Kemper again has the edge, with policies about $500 per month less expensive than Preferred Mutual, on average.

Is Kemper 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.

Accidents and tickets will most likely raise your prices, but is Kemper or Preferred Mutual cheaper for drivers with spotty records?

Which Company is Best for Drivers with Speeding Tickets?

Kemper policyholders can expect their rates to go up an average of $45 a month if they get a ticket, while Preferred Mutual usually raises premiums around $3 per month, on average.

Even so, Kemper is generally the more affordable option for drivers both with a speeding ticket and with a clean record, offering rates that are $215 and $173 cheaper, respectively, compared to Preferred Mutual.

Which Company is Best for Drivers After an Accident?

Kemper drivers who get in an accident can expect to see their premiums climb by $85, while those who have insurance through Preferred Mutual will see about a $95 increase.

Overall, drivers who use Kemper end up with the cheaper prices after an accident, with monthly prices averaging $259 compared to Preferred Mutual's $486.

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 a collision. Preferred Mutual drivers usually see a 57% climb in their auto insurance rates after a DUI charge, while Kemper will typically increase premiums by around 39%.

Kemper has the overall cheapest prices for drivers with a DUI on their records at $287 a month, but it's worth noting that Kemper's average rates come from 15 states compared to just two for Preferred Mutual, so the data may be skewed slightly.

How does Credit Score Impact Kemper and Preferred Mutual Rates?

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

The reasoning auto insurance companies use is that drivers with good credit will be more likely to pay their bills on time; so they'll reward them with cheaper premiums, while those with poor credit will usually be forced to pay more.

Looking specifically at Preferred Mutual and Kemper, which company has the best prices for policyholders at different credit levels?

Which Company is Best for Drivers with Good Credit?

If you have great credit, you'll usually find a better deal with Kemper. Drivers with "excellent" credit can save over 65% compared to Preferred Mutual, and those with "good" scores can also expect to see savings -- about $361 or 63% more affordable each month.

Which Company is Best for Drivers with Bad Credit?

Kemper typically offers lower premiums than Preferred Mutual when it comes to drivers with bad credit. Drivers with "fair" credit pay around $412 a month less with Kemper compared to Preferred Mutual, and those with "poor" scores normally save an average of about $508 per month.

Is Kemper 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 your monthly insurance payment? That's because the fewer miles you put on your vehicle, the less likely you are to get into an accident and cause an insurance claim.

For both drivers who put 6,000 miles on their vehicles annually, as well as those who average twice that figure, Kemper offers less expensive prices than Preferred Mutual. Preferred Mutual average rates for drivers with 6,000 annual miles come in around $307 more expensive than Kemper. Those who drive 12,000 miles every year can expect to pay about $308 more with Preferred Mutual over Kemper.

Kemper vs. Preferred Mutual: Compare Rates for Urban, Suburban, and Rural Drivers

We've already mentioned how your home state can play a role in how much you pay for car insurance, but the type of area you live in can have a sizable impact as well. Generally, 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.

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

Policyholders in rural ZIP codes see the lowest premiums from both carriers, but Kemper comes out on top with average prices around $182 a month. Kemper also has cheaper average rates for drivers in urban and suburban ZIP codes -- a 67% and 52% per month respective difference when compared to Preferred Mutual policyholders in similar areas.

Kemper vs. Preferred Mutual 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, and the best way to do that is by taking advantage of as many car insurance discounts as you can.

But with what seems like a million different discounts out there, it can be difficult 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.

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

Kemper blows Preferred Mutual away when it comes to the sheer amount of discounts available, offering 24 different discounts to Preferred Mutual's 14.

There are a couple discounts both companies offer, but Kemper also offers AAA discounts, advance quote discounts, continuous insurance discounts, and more that Preferred Mutual does not.

On the flip side, Preferred Mutual has a couple unique discounts of its own -- annual mileage discounts and new business discounts.

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

So, we've broken down the average prices for many of the variables auto insurance carriers look at, and we've shown you all the discounts each company offers. But, at the end of the day, which insurance carrier is the best fit for you?

Kemper might be best for you if....

• You have a DUI charge on your record.
• You have below-average credit.
• You drive fewer than 6,000 miles yearly.

Preferred Mutual might be best for you if...

• You like the personalized touch of a small, regional company.

We hope this guide helps you get a better idea of the difference between Kemper and Preferred Mutual and that you can now make a more informed decision when it comes to your insurance.

At the end of the day, the sure-fire way to make sure you're getting the best deal on your auto insurance policy is to compare quotes from several companies, not just Kemper and Preferred Mutual. Luckily, sites like Compare.com do all the hard work for you. Simply enter your ZIP codes below and get multiple free quotes from some of the best insurance carriers in your area, all in just a few minutes.

Kemper vs. Preferred Mutual FAQs

Is Kemper or Preferred Mutual cheaper?

Looking just at the national average rates, Kemper is the more affordable of the two companies, offering average rates of $235 a month compared to $542 for Preferred Mutual. That being said, Kemper won't necessarily be the cheapest carrier for each driver, since there are several different factors that come into play when it comes to your car insurance cost.

Who is better, Kemper or Preferred Mutual?

Sadly, the answer truly is "it depends.". No single company is "better" for every driver -- it all comes down to what your unique auto insurance profile looks like.

Why do Kemper and Preferred Mutual offer me different rates?

Car insurance carriers take a look at a lot of different variables when determining the premiums they charge drivers. Factors such as where your home is, gender, where you park your car, age, and sometimes even things like your credit score can all be used. Both Kemper and Preferred Mutual calculate prices differently, so each one will most likely offer different rates. The only real way to see which carrier is the lowest for you is by comparing personalized quotes from many different companies.

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

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