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American Family vs The Hanover: which is better for car insurance in 2026?

American Family
The Hanover

Across our six scoring categories, American Family comes out ahead in 3, The Hanover in 0, with 3 too close to call. American Family edges the weighted overall score by 0.9 of a point, on the strength of price, discounts, digital experience. That is not a reason to skip The Hanover: it scores higher on none of our categories, though it may still quote you less, and a quote that comes in lower beats a review that scores higher. American Family is the safer default; The Hanover is worth a quote if you are among drivers whose independent agent recommends it for a specific reason.

American Family vs The Hanover, side by side

Category
American FamilyRead the full review
The HanoverRead the full review
Overall scoreWeighted across the six categories below
Better
PriceAverage annual full-coverage premium · 25% of score
2.5$2,785/yr
Average full coverage vs. $2,356 national average
Better
1.5$4,038/yr
Average full coverage vs. $2,356 national average
Claims satisfactionJ.D. Power 2025 claims study, out of 1,000 · 20% of score
3.5702/1,000
J.D. Power 2025 claims study, segment average 700
Not rated
Below the sampling frame of the J.D. Power claims study, which covers only the largest insurers
Complaint recordComplaints relative to company size · 15% of score
4.5Fewer than expected
Complaints relative to company size, NAIC data 2022–2024
4.5Fewer than expected
Complaints relative to company size, NAIC data 2022–2024
Financial strengthAM Best Financial Strength Rating · 10% of score
4.0A
AM Best Financial Strength Rating
Not published
No AM Best rating we could verify — see the review
DiscountsBreadth of published discounts · 15% of score
5.014 published
Discounts on the carrier's own pages · Telematics: DriveMyWay and MilesMyWay
Better
4.012 published
Discounts on the carrier's own pages · No branded telematics program found
Digital experienceApp ratings and self-service depth · 15% of score
3.54.72 iOS / 3.0 Android
App Store (91K ratings) and Google Play (10.7K ratings), August 2026
Better
2.01.99 iOS / 3.0 Android
App Store (154 ratings) and Google Play (173 ratings), August 2026
Availability
19 states, mostly the Midwest and West
19 states, through independent agents only
Best suited to
Midwest drivers who bundle and use telematics
drivers whose independent agent recommends it for a specific reason

Sources: average premiums from NerdWallet's August 2026 rate analysis (Quadrant Information Services), for a 35-year-old driver with a clean record and good credit in a 2023 Toyota Camry LE at 12,000 miles a year, 100/300/50 limits with $1,000 deductibles — national average $2,356. Claims satisfaction from the J.D. Power 2025 U.S. Auto Claims Satisfaction Study (segment average 700). Complaint record from NerdWallet's analysis of NAIC complaint data, 2022–2024. Financial strength from AM Best. Discounts and app data from each carrier's published pages and the Apple App Store / Google Play, retrieved August 2026. Updated August 2026.

American Family vs The Hanover across all six categoriesScored 1–5. Longer is better in every category — the price bar already accounts for cheaper being better.
American FamilyThe Hanover
12345Price2.51.5Claims satisfaction3.5not publishedComplaint record4.54.5Financial strength4.0not publishedDiscounts5.04.0Digital experience3.52.0

Category by category

Price

American Family ahead

American Family averages $2,785/yr for full coverage against The Hanover's $4,038/yr — about $1253 a year, or 104.4 dollars a month, in American Family's favor for this profile.

American Family

$2,785 a year for full coverage, 18% above the national average. American Family is priced above the market.

The Hanover

$4,038 a year for full coverage — 71% above the national average, and the highest figure of any carrier we review.

Claims satisfaction

Too close to call

Neither pulls ahead on claims satisfaction: American Family posts 702/1,000 and The Hanover Not rated, a difference too small to choose on.

American Family

702 out of 1,000, two points above the segment average. Essentially average.

The Hanover

Not in the J.D. Power claims study, which samples only the largest insurers.

Complaint record

Too close to call

Neither pulls ahead on complaint record: American Family posts Fewer than expected and The Hanover Fewer than expected, a difference too small to choose on.

American Family

Fewer complaints than expected for its size — its strongest measure.

The Hanover

Fewer complaints than expected for its size, which is genuinely to its credit.

Financial strength

Too close to call

Neither pulls ahead on financial strength: American Family posts A and The Hanover Not published, a difference too small to choose on.

American Family

AM Best A (Excellent).

The Hanover

We could not verify an AM Best rating from any page we could read. AM Best blocks automated access and Hanover's rating is not published by the secondary sources we checked.

Discounts

American Family ahead

American Family takes discounts on 14 published against The Hanover's 12 published.

American Family

Fourteen published discounts, including several unusual ones — a loyalty discount that rewards a parent's tenure, and a young-volunteer discount.

The Hanover

Twelve published discounts, several aimed specifically at households with teenage drivers — including one for keeping a teen off a particular vehicle.

Digital experience

American Family ahead

American Family takes digital experience on 4.72 iOS / 3.0 Android against The Hanover's 1.99 iOS / 3.0 Android.

American Family

4.72 on the App Store but 3.0 on Google Play. That Android score is among the lowest in this review and hard to overlook.

The Hanover

1.99 on the App Store and 2.98 on Google Play. That iOS score is the lowest of any carrier in this review by a wide margin.

So which one?

Pick American Family if…

  • You are among midwest drivers who bundle and use telematics.
  • Price is your first filter — American Family averages $2,785/yr for full coverage on our benchmark profile.
  • You expect to stack discounts — American Family's lineup is the broader of the two.
  • You would rather handle everything in an app than on a phone call.
Read the full American Family review →

Pick The Hanover if…

  • You are among drivers whose independent agent recommends it for a specific reason.
  • Availability fits: 19 states, through independent agents only.
Read the full The Hanover review →

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