Hanover Auto Insurance

by Nikola Djurkovic

Hanover Insurance Groups, Inc.—named after a small town in Germany famous for being a business center hub, not to mention the many fairs it holds—is one of the oldest insurance companies in the US, being founded all the way back in 1852. However, Hanover did not experience quick growth like some other major insurance players and is currently sitting at the fringe of the Fortune 500 list, occupying the 514th place.

The company only operates in 17 US states, which is something that Hanover insurance reviews note as a disadvantage. By looking at their website and comparing it to the top-notch web solutions offered by big players like Geico and Travelers, the company does indeed appear to be a smaller enterprise.

This is also confirmed by Hanover’s practice of selling their products only through insurance agents, meaning that you can’t get a quote online. We did our best to analyze the expert rankings that are available, study customer feedback, Hanover car insurance reviews and collect data on the company so we could present our verdict on Hanover here.

Product Overview

Features

Hanover sells its auto insurance in Arkansas, Connecticut, Georgia, Illinois, Indiana, Louisiana, Maine, Massachusetts, Michigan, New Hampshire, New Jersey, New York, Ohio, Oklahoma, Tennessee, Virginia, and Wisconsin. It can be purchased only through an agent, meaning online quotes are not available. The site can, however, guide you quickly to the nearest agent if you input your zip code. Also, your Hanover insurance claims can be filed online, either via the website or by using the mobile app, which can also be used to download insurance documents, contact roadside assistance or pay bills.

The prices offered by Hanover seem to be among the highest in the market; however, we were not able to verify this first hand, because we couldn’t get a quote online. Their customer service seems to get average reviews although we were only partially able to confirm this, as the company does not appear in the 2018 J.D. Power’s ranking, which is the most relevant study in insurance customer service satisfaction. However, they do appear in customer service satisfaction research on the regional level, and they don’t score very high. Hanover insurance reviews generally praise them for having several options offered when it comes to coverage and bundles.

Signature Features

Hanover’s most significant upside is its three Platinum Auto programs, which all offer a great combination of coverage options, especially the Platinum Auto Essential. While the first Platinum Program is named Essential, there is nothing lacking about the options it offers. It contains an excellent bundle of coverages, such as vehicle key replacement, child seat replacement, custom equipment, and custom electronics coverage, to name a few. Additionally, Hanover auto insurance reviews show that this coverage can be further customized to offer even higher limits.

You can also upgrade to Platinum Auto Advantage or Platinum Auto Elite to get the most out of your car insurance. If we were to choose Hanover for our auto insurance, it would be because one of these three excellent options matches our needs. You can check the “Types of Insurances Offered” section of this review for more details about these options.

Financial Strength

While Hanover is not among the biggest insurers in the US, its financial strength is still good enough that the average customer will not have to worry whether or not the company will be able to pay their claims. Hanover insurance company rating from A. M. Best for the year 2018 was “A” or “Excellent,” which proves their financial strength.

The company is also very close to being on the Fortune 500 list, currently holding the 514th place, which is not a small feat for a company of their size. Overall data indicates Hanover insurance has stable financial operations.

Types of Insurance Offered

In addition to its Platinum Auto programs, Hanover offers options that are widely available in the insurance market, like liability, comprehensive and collision, medical payments, as well as roadside assistance, newer car replacement, transportation expenses, deductible dividends, and OEM part servicing. However, like us, other Hanover auto insurance reviews will note that some notable coverages are missing, like gap coverage, which is offered by most of the insurance companies we’ve reviewed.

Platinum Auto Essential Coverage

Child Passenger Restraint System Replacement Coverage – If a child’s car seat is damaged in an accident, Hanover will cover the expenses for a new one costing up to $300, with no deductible.

Original Equipment Manufacturer (OEM) Parts – This option provides OEM replacement parts for the current and two previous model years of the covered vehicle.

Mechanical Parts Replacement – Hanover will pay the full replacement cost of damaged parts, not just the actual cash value of parts like tires and batteries.

Ultimate Rental Coverage – This option is among the finest rental car reimbursement offers available in the market, which has been verified in several reviews on Hanover insurance. While you are waiting for your damaged vehicle to be repaired, Hanover will pay the daily rental limit for as long as it is needed costing up to $3,000.

Excess Custom Equipment Coverage This option covers aftermarket devices and equipment, such as rims and spoilers, installed on the vehicle costing up to $1,500. This coverage can be extended all the way up to $40,000.

Vehicle Key Replacement Coverage – If your car keys get stolen, broken, or lost, the Hanover insurance company will cover the replacement costs of up to $250.

Excess Electronic Equipment Coverage If you have installed aftermarket electronic equipment in your vehicle, such as an audio or video system, this option covers equipment costs of up to $1,000. The coverage can be extended all the way up to $20,000 for those who invested heavily in their gear.

Platinum Auto Advantage Additional Coverage

New Car Replacement – If your new car is totaled, and it is not older than a year, or it did not cover more than 15,000 miles, Hanover will pay the full price for a new vehicle of the same make and model.

Newer Car Replacement If your car is a newer vehicle, and it suffers a total loss, Hanover auto insurance will pay the actual cash value of a car that is the same make, model, and equipment of up to one year newer than the destroyed vehicle. They will not pay more than 120% of the actual cash value of the crashed car though. This basically gets you a car that is one year newer than the one you crashed. Not many insurance companies offer this.

Second Chance Accident Forgiveness This option is similar to what many insurance companies in the US offer. If you have been accident-free for 36 months or more, your first at-fault accident will not increase your premium.

Deductible Reduction This option reduces the deductible for collision coverage as soon as it is added to the policy—always a plus, according to the Hanover insurance company reviews. The reduction is $100 per year or $500 maximum.

Platinum Auto Elite Additional Coverage

Pet Injury Protection – If your cat or dog gets injured or killed in an accident, Hanover will pay up to $500 for the veterinarian bills or burial/cremation expenses.

Rental Car Coverage – .If you suffer an accident in a rented vehicle, Hanover will cover the damage to the rented automobile. This also includes any loss of use for you (the renter), the difference in the car’s value after it has been repaired, and any expenses the rental company suffers due to handling claims.

Trip Interruption – If you suffer a covered loss and you are 100+ miles from your home, Hanover Insurance Groups will cover food and lodging, the cost of travel to get home, and the cost of returning the damaged car to your place, all up to $1,000.

Rental Coverage Upgrade – If you are used to traveling in style, this option lets you choose a luxury vehicle or a large SUV, while you are waiting for your car to be repaired.

Home Care Services – If you are injured in an accident, this option will cover the costs of managing your daily tasks at home while you recover, costing up to $2,500 ($500 is the maximum per month). Services include housekeeping, food preparation, transportation services, lawn mowing, and snow removal.

Accidental Airbag Deployment If a factory-installed airbag deploys in an event not related to an accident, Hanover auto insurance will pay for the cost of repairing the airbag, and will not charge a deductible.

Accidental Death Benefit – If the worst happens and a death occurs in a car accident, this coverage pays $10,000 for each insured family member who died in your covered automobile. For this to apply, it is mandatory that they wore their seat belt at the time of the accident.

Customer Service

Hanover is not rated on a global level in J.D. Power’s 2018 ranking of insurance companies based on their customer service. The company only appears in the regional ranking, where, for the New England region, J.D. Power’s Hanover reviews place them in the last place in an overall customer satisfaction study, scoring two out of five stars.  In the North-central region, the company also scores two stars but they are not in the last place.

On the other hand, the Better Business Bureau and the NAIC complaint index are much better. The former is A+, with the average rating of two out five stars, with 22 Hanover insurance BBB customer reviews. However, most of the insurance companies get negative customer reviews, meaning this should not be something that eliminates Hanover by default. The latter is 0.68, which is a better NAIC ratio than the average for a company of Hanover’s size.

Many customers complained that the premium payments were not processed on time by the company, thus interrupting their insurance. Additionally, a lot of complaints regarding low settlements and lousy customer service when filing a claim can be found on websites like Yelp. This information alone should not disqualify Hanover, given that people are very likely to rant about negative experiences online and stay silent when the experiences are positive.

However, judging by Hanover insurance reviews and J.D. Power ratings, we have to conclude that the company does not among the best auto insurance companies when it comes to customer service.

Discounts

Hanover does offer a couple of valuable discounts on their website; however, there is one problem with them: there is no information on how much they reduce the premium, or how they work exactly. For us, reviewers, this information is vital. We understand that every reader is unique, meaning they qualify for different discounts, something we emphasize in not just Hanover, but all car insurance reviews. That’s why we like to recommend a company where the discount you are eligible for is the highest.

For example, Travelers’ program for tracking how safely you drive can reduce your premium up to 20%. However, riskier drivers may get their premium increased if they drive recklessly. On the other hand, Nationwide’s same program can reduce your premium up to 40%, and there’s no penalty if your results are below their standards. Since both companies offer detailed information, all things being equal, we would recommend Nationwide to someone who wants to enroll in this type of program. We know discounts may vary by state, but we would still have liked to see some general information provided.

Since Hanover does not provide us with details on their discounts, we advise a customer potentially interested in their insurance to contact an agent, get a Hanover quote and see what their offer is. Discounts you may get include:

Pay in Full Discount – This discount is available for those who pay their premium all at once.

Anti Theft Device Discount – If your vehicle is equipped with anti-theft devices, you can get a reduction on your premium.

Multi-Car Discount – If you insure multiple vehicles with Hanover, you can get a discount.

Accident Prevention Course Discount – If you pass a certified driving course, you can get a discount.

One Bill – If you have multiple policies with Hanover car insurance, you can choose that all of them to go on one bill, and save money by paying only one service fee instead of several.

Good Student Discount – Similar to the competition, Hanover is eager to reward good students. The standard among the competition is to offer a discount of anywhere from 5% to 10% for students who are averaging B grades or higher.

Student Away at School Discount – If you have a student on your policy who goes to a school that is far away (competitors usually list 100 miles here) and won’t be driving your car, you can get a discount.

Affinity Groups – If you work in a company associated with Hanover car insurance, or if you belong to a club or a civil organization connected to the company, you can get a discount. MetLife offers the best option here, since it is associated with many organizations, and it offers up to a 50% discount in this case.

No Fee EFT – If you enroll in Electronic Fund Transfers, you can save up to $60 yearly on fees. You can sign up for this option online.

About Insurance Rates

Since we were unable to get a quote online to help us come to our verdict, we had to rely on other Hanover auto insurance reviews to find out about the company’s rates. In the state of New Jersey, where we conducted the insurance rate comparison, the company was one of the most expensive options. Only for a single 23 year old female driver was Hanover a cheaper option than Geico, but still more costly than 21st Century Insurance. In all other cases, Hanover was the single most expensive option, costing more than double what 21st Century charged in some cases.

Prices may vary from state to state and from customer to customer, however, based on our Hanover auto insurance rate comparison, we must conclude that Hanover should not be the first choice for those on the budget.

Hanover vs Their Top Competitors

Hanover vs Allstate

According to our data, Allstate seems to be in the middle of the pack when it comes to prices, meaning that it is likely that Hanover is a more expensive option. Allstate also scores better than Hanover when it comes to customer satisfaction, being average in J.D. Power rankings for claims handling, while the same Hanover insurance claims reviews show the company scoring below the average.

Additionally, Allstate has guaranteed claims satisfaction, meaning you will get a refund if you are not pleased with the way your claim was processed, which is a great benefit. All things considered, we would choose Allstate, unless there was a specific coverage or bundle that Hanover offered and Allstate didn’t.

Hanover vs State Farm

While we were unable to get a direct comparison between State Farm and Hanover, our data and other insurance reviews confirm that State Farm is among the more expensive options in the insurance market. They are, however, a good option for riskier drivers, though Hanover insurance reviews confirm that the company offers excellent Platinum programs overall.

In addition, State Farm has a reputation for excellent customer service per some reviewers. This is not confirmed by J.D. Power’s rating, where State Farm scores an average 3 out of 5 stars in its claims satisfaction and shopping study, while Hanover is only ranked regionally, scoring 2 out of 5 stars. If you are looking for ordinary coverage and reliable customer service and you are willing to pay extra, we would lean towards recommending State Farm. Otherwise, we would recommend Hanover, or explore some other options.

Progressive vs Hanover

In our analysis, Progressive prices its auto insurance very aggressively, coming in as the cheapest option. This likely means that Progressive offers auto insurance that is far more budget-friendly than the Hanover insurance company. Progressive also has an advantage when it comes to customer service according to J.D. Power, scoring 3 out 5 in both claims satisfaction and shopping studies, while Hanover scores 2 out of 5 stars in regional studies.

Progressive also offers competitive rates to drivers who have a previous record of traffic violations. Overall, we would lean towards Progressive because of the slightly better customer service and significantly better rates. However, if any specific combination of coverages offered in Platinum Auto options seems appealing, it is worth getting a quote.

Best Alternatives

There are many good alternatives to Hanover insurance according to the best auto insurance reviews. For example, Amica Mutual and Geico scored excellent in J.D. Power’s study compared to Hanover, and Travelers offered more discounts in our comprehensive study.

American Family also offers superb discounts, while MetLife provides terrific opportunities for those working in associated companies. Nationwide is an excellent option for safe drivers, due to their SmartRide program, while Progressive seems like a solid choice for the riskier drivers. And if you are a former or a current US Army member or close family, USAA might me the top choice.

The best course of action is to explore all of our insurance reviews, find a couple of companies that seem like a good fit for your needs, get a quote from them, and then choose the one that meets your requirements best.

Expert Thoughts

The best auto insurance reviews and industry experts award the Hanover company with average or below average ratings. J.D. Power gives the company 2 stars out of 5 for customer service satisfaction in the New England region and North-Central region, which is below average. Better Business Bureau, on the other hand, awards the company with a substantially better score of A+.

Most Hanover car insurance reviews rank the company in the middle of the US insurance market. The consensus among the critics is that Hanover offers excellent coverage options but it also has patchy customer service and high prices.

Frequently Asked Questions

1. Is Hanover good insurance for cars?

Based on our research we cannot recommend Hanover as a number one choice unless you are interested in what Platinum programs have to offer. Prices seem to be high, customer service is in the lower tier, and there is no way to get a quote or find out more about their discounts online.

The company does offer some unique coverages and special bundles, but in the competitive car insurance market, this effort is not sufficient to put Hanover near the top. However, if you really like what is mixed in the Platinum programs, feel free to get a Hanover insurance quote.

2. How do you receive Hanover discounts?

Hanover offers the following discounts: Paid-in-Full discount, Anti-theft devices discount, Multi-car discount, Accident prevention courses discount, Good student discount, Student away at school discount, Affinity groups discount, No fee EFT discount, and One bill discount. Check the “Discounts” section in this review to learn more and find out how to qualify.

3. What is the Hanover Insurance A. M. Best rating?

Hanover Insurance has an A. M. Best rating equal to A or “Excellent.” While this is not the best rating possible, Hanover insurance reviews stress that it is still strong enough that an average customer has nothing to worry about when it comes to their ability to pay claims.

0 comment
0

Leave a Comment

* By using this form you agree with the storage and handling of your data by this website.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Privacy & Cookies Policy