American National vs. Encompass: Which Company is the Best Fit for You?

Quick Facts

• Looking at the national averages for car insurance, American National offers significantly cheaper prices than Encompass
• American National offers more affordable premiums for drivers who have below-average credit
• Encompass may help you save more money -- they offer more discounts than American National Insurance Company

American National or Encompass: Which Company has the Cheapest Car Insurance?

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

You might be considering American National or Encompass for your next policy, but which one has less expensive prices for auto insurance?

Looking at nationwide averages, American National is quite a bit cheaper than Encompass, with rates averaging $87 a month compared to $466 with Encompass.

That being said, that doesn't mean American National will necessarily be more affordable than Encompass for each driver. After all, insurance carriers can offer drastically different rates to every driver depending on rating factors like where you call home, your credit score, your age, or even your driving record (among other things), so premiums will differ quite a bit from person to person.

Luckily, we've broken down average prices from both American National and Encompass by a bunch of different rate factors, so read on to find out which company is the best for you.

American National vs. Encompass: Average Car Insurance Rates by State

American National and Encompass compete against each other in four states, with American National offering cheaper rates to the average driver in all of them. Colorado has the most noticable difference, where American National premiums are $634 less expensive than car insurance rates at Encompass.

There are plenty of other factors that go into your auto insurance payment than just your home state. Keep reading to learn more.

Which is the Best Company For Young Drivers?

Young drivers -- especially teens -- usually pay a lot for car insurance compared to older drivers. The reason is that teen drivers are statistically much more likely to cause collisions and other accidents that will result in an insurance claim.

Even so, that doesn't mean that teen drivers have to just accept sky-high insurance prices. As you can see above, teens who use American National save over 85% per month compared to those who use Encompass.

But with both companies, you'll see your rates reduce significantly by the time you turn 25. For example, average prices for American National policyholders lower around $100 and Encompass's premiums decrease more than $500 over that time.

Which is the Best Company for Retired Drivers?

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

When looking at American National and Encompass specifically, which carrier is best for retired drivers? American National gets the edge here, with average premiums coming in at about $66 a month compared to Encompass's $335.

Which is the Best Company for Married Drivers?

Did you know that insurance rates are typically more affordable for married drivers than they are for single drivers? That's because policies for married policyholders normally cover more than one vehicle, which many carriers will give you a discount for.

For single policyholders, the difference in average prices between these two companies is significant, with American National premiums coming in at around a quarter of Encompass's. For married couples, the advantage is clear again - American National has the edge when it comes to average rates.

American National or Encompass: Average Rates by Gender

Did you know women tend to pay less for auto insurance than men? That's because men are more likely to get into collisions and get tickets, which increases the chances of filing a claim with insurance.

Typically, men see prices about 1% a month higher with American National, and around 5% more with Encompass.

Looking at the data for each company specifically, American National comes out on top for both men and women. On average, male drivers save about $389 per month and women save about $367 with American National compared to the average Encompass policyholder.

American National vs. Encompass: 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, insurance isn't the easiest topic to understand. Everyone needs car insurance, but there are so many different terms and limits that it can be hard to find the right policy for you.

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

Looking specifically at state minimum limits for liability insurance, American National has the significant edge, with average monthly premiums coming in at $52. If you want a full coverage policy with the same state minimum limits, American National again has the edge, with policies averaging around $123 a month to Encompass's $629.

Is American National or Encompass 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.

You'll probably end up paying more with speeding tickets and accidents on your record, but which of these two carriers offers the cheapest prices to drivers with less-than-perfect records?

Which Company is Best for Drivers with Speeding Tickets?

Policyholders who use American National for their car insurance can generally expect their monthly bill to go up about 20% after getting a speeding ticket. Encompass policyholders can expect a bit more drastic of an increase of around 21%.

However, American National has less expensive rates for drivers in both categories -- their rates are around 70% cheaper for drivers with clean records and 71% more affordable for those with a ticket.

Which Company is Best for Drivers After an Accident?

American National drivers who get in an accident can expect to see their premiums climb by just under $30, while those who have insurance through Encompass will see about a $100 increase.

At the end of the day, the less expensive prices come from American National, with average rates coming in at $95 compared to Encompass Insurance's $328.

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. On average, Encompass will climb your premiums around 78% after a DUI, while American National's average rates increase by more than 35%.

How does Credit Score Impact American National and Encompass Rates?

Did you know many insurance companies take into account your credit score when determining prices? This isn't true for everyone (Michigan, for example, has banned the use of credit score as an insurance factor) but it will come into play for several policyholders.

Auto insurance carriers argue that those with good credit scores are more likely to pay their bills on time each month, which lowers the risk involved on their end, while the opposite is true for those with bad credit.

So, which carrier offers the lowest premiums for drivers with good, average, or poor credit?

Which Company is Best for Drivers with Good Credit?

Which Company is Best for Drivers with Bad Credit?

Is American National or Encompass Better for Drivers who Work from Home or Have Short Commutes?

How much you drive can have a big impact on your monthly car insurance bill. Usually, the more milage you drive, the more you can expect to pay for coverage.

For both remote workers and those taking short commutes, American National offers cheaper prices than Encompass. American National's average premiums for drivers with 6,000 annual miles come in over 80% more affordable than Encompass. Those who drive 12,000 miles every year can expect to pay more than 80% less with American National over Encompass.

American National or Encompass: 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 considerable impact as well. Typically, policyholders who live in heavily-populated urban areas will pay quite a bit more than rural drivers due to the number of vehicles that are on the roads where they live.

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

Those in rural areas can expect to save about 82% with American National compared to Encompass. People who live in suburban areas pay around 80% less with American National compared to Encompass. For policyholders in urban ZIP codes, American National Insurance Company's average prices are about 81% less than Encompass Insurance.

American National vs. Encompass Discounts

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

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.

Luckily, we did the hard work for you and broke down all of the different discounts offered by both American National and Encompass so that you can find the company that has the most discounts and, therefore, the largest savings.

Encompass knocks American National out of the park when it comes to the sheer number of discounts available, offering 26 different discounts to American National's 26.

Both companies offer several of the same discounts -- like distant student discounts, discounts for getting driver training, and multi-policy discounts -- but Encompass also offers discounts for ABS, advance quote, DRL, and more.

On the other hand, American National has a few proprietary discounts of their own for things like claim free discounts, COVID-19 relief discount, excess vehicle discounts, and more.

Final Thoughts: Is American National or Encompass Best for You?

You've seen the effect certain variables have on your insurance and the different discounts carriers offer. That's all well and good, but at the end of the day, which insurance company is the best carrier for you, your vehicle, and your wallet?

American National might be best for you if....

• You will be the only person on the car insurance policy.
• You're looking for the best premiums on liability only coverage.
• You're of retirement age and want to take advantage of lower prices.

Encompass might be best for you if...

• You already have plans to move to another state -- undefined is only available to residents.
• You're looking for discounts -- Encompass has the most.

Hopefully, this guide helps you get a good idea of the differences between American National and Encompass 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 companies, not just American National and Encompass. Luckily, Compare.com makes it easy for you to do just that. Just enter your ZIP code below and get multiple quotes from some of the best car insurance carriers in your area, all for free.

American National vs. Encompass FAQs

Is American National or Encompass cheaper?

American National is the cheaper of the two companies when looking at national average rates, with policies averaging $87 per month with American National and $466 for Encompass. But that doesn't mean American National will be the lowest carrier for each driver, since there are many different factors that are considered when it comes to your auto insurance cost.

Who is better, American National or Encompass?

Unfortunately, the answer truly is "it depends.". No one company is necessarily "better" for everyone -- it all depends on what your unique car insurance profile looks like.

Why do American National and Encompass offer me different rates?

Insurance carriers use a lot of different variables when calculating the premiums they charge. Factors such as gender, where you park your car, your driving record, age, and sometimes even things like your credit score can all come into play. Both American National and Encompass use different formulas, so it's likely they'll offer different prices. The best way to determine which carrier is the cheapest for you is by comparing personalized quotes from a range of different companies.

How do I know if American National or Encompass is right for me?

The only way to find the auto insurance company that's right for you is by getting quotes from a handful of carriers 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 information once and you'll get quotes from dozens of your local top insurance companies for free. With those, you can guarantee you're getting the most affordable price. And maybe you'll find that the best carrier for you isn't American National or Encompass 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.