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

Quick Facts

• Looking at the national averages for insurance, State Farm offers significantly more affordable rates than Hanover
• State Farm has less expensive premiums for policyholders who haven't received any speeding tickets or been in an accident in the last few years
• State Farm offers more affordable prices for drivers who have less-than-stellar credit

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Hanover vs. State Farm: Which Company has the Cheapest Car Insurance?

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

You might have narrowed it down to Hanover or State Farm for your next policy, but which company will offer you cheaper rates?

Looking at nationwide averages, Hanover is quite a bit more expensive than State Farm, with prices averaging $853 per month compared to just $158 with State Farm.

Even so, State Farm may not be the lowest or best option for every single driver out there. Auto insurance companies use all sorts of complex algorithms to calculate premiums, so depending on how clean your driving record is or how old you are (among a whole range of other factors), you could see wildly different rates from the ones above.

Luckily, we've broken down average prices from both Hanover and State Farm by a variety of different rate factors, so read on to find out which carrier is the best for you.

Hanover or State Farm: Average Car Insurance Rates by State

Hanover and State Farm compete against each other in eight states, with State Farm offering less expensive rates to the average driver in all of them. Illinois has the most noticable difference, where State Farm premiums are over 70% more affordable than insurance rates at Hanover.

But there's more to calculating car insurance premiums than just where you live. Continue reading to see how other factors will affect your rates.

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Which is the Best Company For Young Drivers?

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

But still, even with seemingly sky-high prices, teen drivers can still find ways to save money. For example, 18-year-old drivers pay an average of more than $500 less a month by choosing State Farm over Hanover.

But both carriers will drop premiums by the time you turn 25. For example, average rates for Hanover policyholders reduce over 60% and State Farm's prices lower nearly 60% over that time.

Which is the Best Company for Retired Drivers?

Once you approach retirement age, you'll usually enjoy the most affordable car insurance premiums you'll ever see. You've been on the road for years, and all that experience pays off when it comes to your monthly prices for auto insurance.

But who has the best rates for retired drivers between Hanover and State Farm? State Farm gets the edge, with prices for drivers 65 and older $502 cheaper than the national average for Hanover.

Which is the Best Company for Married Drivers?

Those who are single tend to get offered slightly more expensive insurance rates than married policyholders. That's because policies for married couples typically cover more than one car, which a lot of companies will offer you a discount for.

When it comes to relationship status, State Farm is the clear winner for single policyholders, with premiums about $817 per month less expensive than Hanover, on average. The advantage for married drivers with State Farm is also obvious, where drivers save more than $500 a month.

Hanover vs. State Farm: Average Rates by Gender

Because men are more likely to get into accidents and get speeding tickets, they are more likely to file a claim with insurance. Therefore, insurance carriers will tend to charge men more than women.

Women generally pay around $60 per month less than men with Hanover, while with State Farm, the difference is closer to $12 a month.

Looking at the data for each company specifically, State Farm comes out on top for both men and women. On average, male drivers save about $719 per month and women save about $671 with State Farm compared to the average Hanover policyholder.

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Hanover or State Farm: 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.

For most people, auto insurance isn't the easiest topic to understand. Everyone needs car insurance, but there are so many different terms and coverages that it can be hard to find the right policy.

That being said, most policies end up falling into two different types of coverage -- liability only (which provides property damage and bodily injury coverage for other drivers and their passengers if you cause a collision) and full coverage (which includes two additional coverages -- comprehensive and collision -- alongside what you get with a liability policy).

If you're looking for state minimum limits for liability insurance, State Farm usually offers significantly cheaper prices of $99 compared to Hanover's $509. When it comes to full coverage policies with similar limits, State Farm again has the edge, with policies around $500 a month more affordable than Hanover, on average.

Is Hanover or State Farm Better for Drivers with Spotty Records?

It's no big secret that drivers who are accident-free get better deals on their insurance. But even if you have a spotty record, you can still find plenty of ways to save some cash on your monthly bill.

Accidents and tickets will most likely raise your premiums, but is Hanover or State Farm cheaper for drivers with less-than-perfect records?

Which Company is Best for Drivers with Speeding Tickets?

Hanover policyholders can expect their rates to go up an average of $221 per month if they get a ticket, while State Farm normally raises prices about $21 a month, on average.

However, State Farm tends to offer the best prices for drivers both with clean records and with a speeding ticket. Drivers with a clean record can save around $483 per month and drivers with a ticket can save about $683 a month with State Farm.

Which Company is Best for Drivers After an Accident?

Hanover drivers who get in an accident can expect to see their premiums climb by just under $350, while those who have insurance through State Farm will see around a $30 increase.

Overall, drivers who use State Farm end up with the cheaper prices after an accident, with monthly rates averaging $163 compared to Hanover Insurance's $943.

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 speeding ticket or even a collision. For example, Hanover increases average premiums by just under $400 per month -- that's just under a 40% increase.

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How does Credit Score Impact Hanover and State Farm Rates?

Often times, your credit score can be used as one of the variables to determine your monthly auto insurance rates. This isn't always the case (California, for example, has banned the use of credit score as a rating factor) but it will come into play for several policyholders.

The reasoning car insurance companies use is that drivers 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 specifically at State Farm and Hanover, which carrier has the best premiums for policyholders at different credit levels?

Which Company is Best for Drivers with Good Credit?

Which Company is Best for Drivers with Bad Credit?

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Is Hanover or State Farm 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 substantial impact on how much auto insurance carriers will charge for coverage? Generally, the more miles you put on your vehicle each year, the more you can expect to pay for coverage.

For both drivers who put 6,000 miles on their vehicles yearly, as well as those who average twice that figure, State Farm tends to be the less expensive option. State Farm average prices for drivers with 6,000 annual miles come in over $500 more affordable than Hanover. Those who drive 12,000 miles each year can expect to pay more than $500 less with State Farm over Hanover.

Hanover vs. State Farm: Compare Rates for Urban, Suburban, and Rural Drivers

Where you live can play a big role in how much you pay for car insurance. Usually, drivers who live in less densely populated rural areas will pay quite a bit less than urban policyholders because of the small number of cars that are on the roads in those areas.

State Farm tends to offer the most affordable prices for drivers in all areas, regardless of if they're urban, suburban, or rural.

For drivers in urban ZIP codes, State Farm offers rates about $185 a month compared to Hanover's $966. People who live in suburban ZIP codes can expect to pay around $161 a month for State Farm and $842 for Hanover. Lastly, those in rural areas tend to get the cheapest prices from both companies, with average monthly premiums coming in at $127 and $750 for State Farm and Hanover respectively.

Hanover vs. State Farm 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. That's where auto insurance discounts comes into play.

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

In the section below, we've broken down all of the different discounts offered by both Hanover and State Farm so that you can find the one that has the most discounts and, therefore, the biggest savings.

Overall, State Farm comes out ahead with 23 discounts to Hanover's 21.

A couple of those are overlapping for things like annual mileage discounts, discounts for being a defensive driver, distant student discounts, and discounts for being a good driver. State Farm also offers drive safe & save discounts, farm discounts, goverment employee discounts, and more that Hanover does not.

On the flip side, Hanover has a couple unique discounts of its own -- advance quote discounts, education discounts, EFT discounts, and more.

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Final Thoughts: Is Hanover or State Farm Best for You?

So, you've seen how different factors can affect your insurance rates. We've shown you all the discounts each carrier offers, too. That's all well and good, but at the end of the day, which insurance company is the best carrier for you and your specific driver profile?

State Farm might be best for you if....

• You have a DUI charge on your record.
• You want basic car insurance coverage at the state minimum limits.
• You live in a rural area.

Hanover might be best for you if...

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

We hope this guide has ben a valuable resource as you compare Hanover and State Farm and that you can now make a more informed decision when it comes to your auto insurance.

At the end of the day, the sure-fire way to make sure you're getting the best deal on your insurance policy is to compare quotes from multiple carriers, not just Hanover and State Farm. 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 car insurance companies in your area, all in just a few minutes.

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Hanover vs. State Farm FAQs

Is Hanover or State Farm cheaper?

Looking just at the national average prices, State Farm is the cheaper of the two carriers, offering average rates of $158 per month compared to $853 for Hanover. Even so, State Farm won't necessarily be the lowest carrier for every driver, since there are a bunch of different variables that are considered when it comes to your insurance cost.

Who is better, Hanover or State Farm?

Sadly, the real answer is "it depends.". No single company is "better" for each driver -- it all depends on what your unique auto insurance profile looks like.

Why do Hanover and State Farm offer me different rates?

Car insurance companies take a look at quite a few different factors when calculating the rates they charge policyholders. Things such as where you call home, age, gender, where you park your vehicle, and sometimes even things like your credit score can all be taken into consideration. Both Hanover and State Farm use different formulas, so each one will most likely offer different premiums. The only real way to see which carrier is the most affordable for you is by comparing personalized quotes from many different carriers.

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

The only way to find the insurance company that's right for you is by getting quotes from a handful of 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 area information and you'll get free quotes from dozens of the best car insurance carriers in your area. With those, you can guarantee you're getting the best rate. And who knows, the best carrier for you might not be Hanover or State Farm at all!

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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.