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

Quick Facts

• In general, Vermont Mutual offers significantly cheaper prices than Preferred Mutual
• Vermont Mutual has more affordable rates for single people who will be the only person on the auto insurance policy
• Vermont Mutual offers cheaper average prices for policyholders whose driving record contains an at-fault collision

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

So, you're thinking about switching to a new insurance policy. After all, you've seen ads from all sorts of companies offering large savings. But exactly how much can you save by switching?

You've maybe even narrowed your search down to Preferred Mutual or Vermont Mutual as your top options, but between the two, which one has more affordable premiums for insurance?

As you can see, Preferred Mutual has average rates that are around 70% a month more expensive than those from Vermont Mutual when looking at the national average rates for car insurance.

But Vermont Mutual may not be the cheapest or best option for every driver out there. Insurance carriers vary their rates depending on things like where you live, how good your credit score is, how clean your driving record is, how old you are, and a ton of other factors, so premiums could vary drastically from person to person.

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

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

Preferred Mutual and Vermont Mutual only compete against each other in one states, with Preferred Mutual offering less expensive premiums to the average driver in all of them. Massachusetts has the most noticable difference, where Preferred Mutual prices are $61 cheaper than auto insurance rates at Vermont Mutual.

That being said, there are plenty of other factors that go into your car insurance bill than just the state you live in. Read on to learn more.

Which is the Best Company For Young Drivers?

Teen drivers will almost always have the most expensive auto insurance premiums of any group out there on the road. The reason is that teen drivers are statistically much more likely to get into accidents since they have less experience on the roads.

Even so, that doesn't mean that teen drivers have to just accept sky-high insurance prices. Just look at the table above -- where 18-year-old drivers who have Vermont Mutual for their auto insurance pay over 70% less than those who use Preferred Mutual.

That being said, both companies will reduce rates by the time you turn 25. For example, average premiums for Preferred Mutual policyholders drop about $500 and Vermont Mutual's prices decrease around $200 over that time.

Which is the Best Company for Retired Drivers?

Drivers around retirement age usually enjoy some of the most affordable insurance rates you'll ever find. After all, they've likely been driving for quite some time, which normally reduces their chances of collisions and other infractions that can raise prices.

So, which carrier offers the best rates to retired drivers? Vermont Mutual gets the edge, with premiums for drivers 65 and older $267 less expensive than the national average for Preferred Mutual.

Which is the Best Company for Married Drivers?

Did you know that car insurance rates are generally more expensive for single policyholders than they are for married drivers? This usually boils down to married couples having multiple vehicles on their policy -- something a lot of auto insurance carriers will reward with discounts.

For single drivers, the difference in average premiums between these two companies is significant, with Vermont Mutual prices coming in at about a third of Preferred Mutual's. The advantage is also clear for married policyholders - Vermont Mutual offers the lowest average rates.

Preferred Mutual or Vermont Mutual: Average Rates by Gender

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

Usually, women see premiums around 3% per month less with Preferred Mutual, and about 8% less with Vermont Mutual.

When it comes to the cheapest prices for each gender, Vermont Mutual comes out as the lowest option for both genders, with average premiums $370 less for men and $368 cheaper for women.

Preferred Mutual vs. Vermont 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.

Car insurance can be a complicated subject for most people. There are several 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 (that covers bodily injury and property damage for other drivers and passengers if you cause an accident) and full coverage (which includes collision and comprehensive coverages that protect your own car, in addition to liability coverage).

Looking specifically at state minimum limits for liability insurance, Vermont Mutual has the significant edge, with average monthly prices coming in at $85. If you want a full coverage policy with the same state minimum limits, Vermont Mutual again has the edge, with policies averaging around $261 a month to Preferred Mutual's $850.

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

It's no secret -- drivers with good records end up getting the best deals on their auto insurance. But that's not to say you can't save money if you don't have the best driving record, either.

It's no secret secret that speeding tickets and at-fault accidents lead to higher rates, but which company -- Preferred Mutual or Vermont Mutual -- has the most affordable prices for drivers with spotty records?

Which Company is Best for Drivers with Speeding Tickets?

Policyholders who use Preferred Mutual for their insurance can usually expect their monthly bill to go up about 1% after getting a speeding ticket. Vermont Mutual policyholders can expect a bit more drastic of an increase of around 6%.

Even so, Vermont Mutual is typically the more affordable option for both drivers who have a recent ticket and those with clean records -- their rates are around 70% cheaper for drivers with clean records and 68% more affordable for those with a ticket.

Which Company is Best for Drivers After an Accident?

After an accident, drivers who have their car insurance through Preferred Mutual can expect to see about an $97 -- or around 20% -- rise in their insurance rates. Drivers who use Vermont Mutual for their car insurance will see a monthly bill about $27 (or 19%) more expensive after reporting a collision to their auto insurance carrier.

At the end of the day, drivers who use Vermont Mutual end up with the cheaper prices after an accident, with average premiums coming in at $144 compared to Preferred Mutual's $486.

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 -- normally a lot more than an accident or speeding ticket. Preferred Mutual drivers usually see a 57% raise in their auto insurance rates after a DUI charge, while Vermont Mutual will generally climb premiums by around 62%.

But if you end up with a DUI charge and are looking for more affordable prices, Vermont Mutual tends to be less expensive for the average driver, with monthly premiums coming in at about $307 to Preferred Mutual's $902.

How does Credit Score Impact Preferred Mutual and Vermont Mutual Rates?

You may not have known, but your credit score can be used as one of the variables to determine your monthly insurance rates. Certain states and carriers do not allow for credit score to be used as an insurance factor, but it might come into play for many drivers.

The reasoning car insurance companies use is that policyholders with bad credit will be less likely to pay their bills on time; so typically, they'll be asked to pay more, while those with good credit will be rewarded with more affordable prices.

Looking at Preferred Mutual and Vermont Mutual specifically, which company has the best premiums for drivers at different credit levels?

Which Company is Best for Drivers with Good Credit?

If you have great credit, Vermont Mutual will usually reward you the most. For policyholders with "excellent" credit scores, Vermont Mutual comes in nearly 79.24 less expensive. Drivers with "good" credit scores generally save around 79% with Vermont Mutual compared to average rates from Preferred Mutual.

Which Company is Best for Drivers with Bad Credit?

Vermont Mutual typically offers lower premiums than Preferred Mutual when it comes to drivers with less-than-perfect credit. Drivers with "fair" credit pay about 75% per month less with Vermont Mutual compared to Preferred Mutual, and those with "poor" scores normally save an average of around 65% a month.

Is Preferred Mutual or Vermont Mutual 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 how much auto insurance carriers will charge for coverage. That's because the more milage you put on your vehicle each year, the more likely you are to be in a collision and file an insurance claim.

As you can see in the table above, annual mileage doesn't have much of an impact on how much Vermont Mutual charges. However, there's a small difference in monthly prices for Preferred Mutual, with drivers who put 6,000 miles on their car annually paying about $2 less every month compared to those who drive 12,000 miles each year. Still, for drivers in both categories, Vermont Mutual is the cheaper company.

Preferred Mutual or Vermont 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 insurance, but the type of area you live in can have a large 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.

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

Those in rural areas can expect to save around 40% with Vermont Mutual compared to Preferred Mutual. People who live in suburban areas pay about 64% less with Vermont Mutual compared to Preferred Mutual. For drivers in urban ZIP codes, Vermont Mutual's average prices are around 78% less than Preferred Mutual.

Preferred Mutual vs. Vermont Mutual Discounts

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

The difficult part is finding all of the discounts you're eligible for, since it can feel sometimes like every carrier has different discounts and each one is advertised differently.

Luckily, we did the hard work for you and looked at all of the different discounts Preferred Mutual and Vermont Mutual offer their customers so that you can find the one that has the most discounts and, therefore, the largest savings.

They both offer great discounts like ABS discounts, anti-theft discounts, mature driver discounts, and paid in full discounts.

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

You've seen the role certain factors have on your car insurance and the different discounts companies offer. But, at the end of the day, which company is the right company for you, your vehicle, and your wallet?

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

• You have an at-fault accident on your record.
• Your credit score is high.
• You want to save money while purchasing insurance for a teenager.

Preferred Mutual might be best for you if...

• You have a more unique driver profile than those we mentioned above.

Hopefully, this guide helps you get a better idea of the difference between Preferred Mutual and Vermont Mutual. We also hope we've given you the information you need to make the best decision about your car 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 carriers, not just Preferred Mutual and Vermont Mutual. Luckily, sites like Compare.com do all the hard work for you. Just enter your ZIP code below and get free quotes from dozens of top car insurance companies in your area, all in just a few minutes.

Preferred Mutual vs. Vermont Mutual FAQs

Is Preferred Mutual or Vermont Mutual cheaper?

Vermont Mutual is the more affordable of the two carriers when looking at national average rates, with policies averaging $173 a month with Vermont Mutual and $542 for Preferred Mutual. But that doesn't mean Vermont Mutual will be the most affordable carrier for everyone, since there are a variety of different variables (things like gender, age, driving record, etc.) that play a role in how much you pay.

Who is better, Preferred Mutual or Vermont Mutual?

Unfortunately, the only answer we can give you is "it depends.". No one company is necessarily "better" for every policyholder -- it all boils down to your unique auto insurance profile.

Why do Preferred Mutual and Vermont Mutual offer me different rates?

Insurance companies use lots of different factors when determining the premiums they charge. Variables such as gender, where you park your vehicle, age, your driving record, and sometimes even things like your credit score can all come into play. Both Preferred Mutual and Vermont Mutual calculate prices using different factors, so it's likely they'll offer different rates. The best way to determine which carrier is the cheapest for you is by comparing personalized quotes from lots of different carriers.

How do I know if Preferred Mutual or Vermont 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 make it easy for you to do just that. Just enter your ZIP code and you'll get quotes from dozens of your local top insurance carriers for free. With those, you can guarantee you're getting the lowest rate. And maybe you'll find that the best carrier for you isn't Preferred Mutual or Vermont 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.