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

So, you're in the market for a new car insurance policy. You may have even narrowed down your search to American National and Penn National. But which of these two companies is the best one for you? Read on to find which carrier has the best rates and biggest discounts.
Newly insured car driving down the road
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Quick Facts

  • Based on national averages for auto insurance, American National offers significantly more affordable prices than Penn National
  • American National has cheaper premiums for policyholders who haven't received any speeding tickets or been in a collision in the last few years
  • Penn National may help you save more money -- they offer more discounts than American National Insurance Company


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

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

You've maybe even narrowed it down to American National or Penn National for your next policy, but which one will save you the most?

American National Penn National
$87$218

Looking at nationwide averages, Penn National is quite a bit more expensive than American National, with prices averaging $218 a month compared to just $87 with American National.

Even so, American National may not be the cheapest or best option for every driver out there. Insurance carriers use tons of complex algorithms to determine rates, so depending on how good your credit score is or where you live (among a whole bunch of other factors), you could see wildly different premiums from the ones above.

Wanting to know if American National or Penn National is really the right company for you? Keep on reading to see how average prices can change based on all of the factors we've mentioned above.

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

State American National Penn National
TN$120$134

American National and Penn National only compete against each other in one states, with American National offering less expensive premiums to the average driver in all of them. Tennessee has the most noticable difference, where American National rates are $14 cheaper than car insurance premiums at Penn National.

There's a lot more that goes into your auto insurance payment than just your home state. Keep reading to learn more.


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Which is the Best Company For Young Drivers?

American National Penn National
18-year-old drivers$197$473
25-year-old drivers$74$193

Young drivers -- especially teens -- typically pay a lot for insurance compared to older drivers. It's normally because teen drivers are statistically much more likely to get into an accident that results in an auto insurance claim, making them much riskier to insure.

But that doesn't mean that teen drivers have to just accept sky-high auto insurance rates. As you can see above, teens who use American National save almost 60% per month compared to those who use Penn National.

However, with both companies, you'll see your prices lower significantly by the time you turn 25. Penn National offers the steepest reduction, with 25-year-olds paying less than a third of what 18-year-old drivers are charged. That being said, American National still has the lowest premiums at $74 monthly.

Which is the Best Company for Retired Drivers?

American National Penn National
65+-year-old drivers$66$163

When it comes to car insurance, patience and experience pay off, with drivers around retirement age paying some of the most affordable prices you'll ever find.

So, which carrier offers the best rates to retired drivers? American National gets the edge, with prices for drivers 65 and older nearly 60% less expensive than the national average for Penn National.

Which is the Best Company for Married Drivers?

American National Penn National
Single$105$251
Married$64$173

You may not be aware, but insurance rates tend to be more expensive for single policyholders than they are for married drivers. That's usually because married couples tend to own and insure more than one vehicle, which can often earn you a discount.

For those who are single, the difference in average premiums between these two carriers is significant, with American National rates coming in at around 60% less than Penn National's. The advantage is also clear for married policyholders - American National offers the cheapest average prices.

American National or Penn National: Average Rates by Gender

American National Penn National
Male$88$220
Female$87$215

Men are statistically more likely than women to get into an accident or get pulled over for speeding, which means they'll generally end up paying more for car insurance than women.

Men normally pay about 1% more a month than women with American National, but with Penn National, the difference is closer to 2% per month.

Looking at overall affordability, American National offers the lowest average premiums for both men and women, with average prices $132 less for men and $128 cheaper for women.


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American National vs. Penn National: Compare State Minimum vs. Full Coverage Rates

American National Penn National
State Minimum*$52$144
Full Coverage**$123$292

*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 auto 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 and passengers if you cause a collision) and full coverage (which includes collision and comprehensive coverages that protect your own car, in addition to what you get with liability).

Looking specifically at state minimum 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 Penn National's $292.

Is American National or Penn National Better for Drivers with Spotty Records?

It's no secret -- drivers with good records end up getting the best deals on their 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 collisions and speeding tickets lead to higher rates, but which company -- American National or Penn National -- has the most affordable prices for drivers with less-than-perfect records?

Which Company is Best for Drivers with Speeding Tickets?

American National Penn National
Clean Record$67$139
1 Speeding Ticket$84$179

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. Penn National policyholders can expect a bit more drastic of an increase of around 22%.

That being said, American National has more affordable rates for drivers in both categories, offering premiums that are $72 and $95 less expensive, respectively, compared to Penn National Insurance.

Which Company is Best for Drivers After an Accident?

American National Penn National
Clean Record$67$139
1 At-Fault Accident$95$206

American National drivers who get in an accident can expect to see their rates climb by just under $30, while those who have insurance through Penn National will see about a $65 increase.

At the end of the day, drivers who use American National end up with the cheaper prices after an accident, with average premiums coming in at $95 compared to Penn National Insurance's $206.

Which Company is Best for Drivers with a DUI?

American National Penn National
Clean Record$67$139
1 DUI$104$346

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. Penn National drivers usually see a 60% raise in their auto insurance prices after a DUI charge, while American National will usually increase rates by around 36%.

But if you end up with a DUI charge and are looking for more affordable premiums, American National tends to be cheaper for the average driver, with monthly premiums coming in at about $104 to Penn National's $346.


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How does Credit Score Impact American National and Penn National Rates?

You may not have known, but your credit score can be used as one of the variables to calculate your monthly insurance prices. This isn't true for everyone (California, for example, has banned the use of credit score as a car insurance factor) but it will come into play for quite a few policyholders.

Auto insurance companies argue that someone with good credit is more likely to pay their bills on time, which makes them less risky to insure. Because of that, drivers with good credit will often be rewarded with more affordable premiums.

Looking at American National and Penn National specifically, which carrier has the lowest rates for policyholders at different credit levels?

Which Company is Best for Drivers with Good Credit?

American National Penn National
Excellent Credit Score$51$161
Good Credit Score$66$182

If you have solid credit, American National will typically reward you the most. For drivers with "excellent" credit scores, American National comes in nearly 68.32 less expensive. Drivers with "good" credit scores generally save around 64% with American National compared to average prices from Penn National.

Which Company is Best for Drivers with Bad Credit?

American National Penn National
Fair Credit Score$86$208
Poor Credit Score$147$320

American National typically offers lower rates than Penn National when it comes to drivers with bad credit. Drivers with "fair" credit pay about 59% per month less with American National compared to Penn National, and those with "poor" scores normally save an average of around 54% per month.


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

American National Penn National
6,000 Annual Miles$83$218
12,000 Annual Miles$92$218

The amount of time you spend behind the wheel of your car plays a big role in your monthly car insurance cost. Usually, the more milage you put on your vehicle each year, the more you can expect to pay for coverage.

As you can see in the table above, annual mileage doesn't have much of an impact on how much Penn National charges. However, there's a small difference in monthly prices for American National, with drivers who put 6,000 miles on their car annually paying about $9 less every month compared to those who drive 12,000 miles each year. Still, for drivers in both categories, American National is the more affordable carrier.

American National or Penn National: Compare Rates for Urban, Suburban, and Rural Drivers

Where you live can play a considerable role in how much you pay for auto insurance. Typically, policyholders who live in less densely populated rural areas will pay quite a bit less than urban drivers since there are a lot fewer vehicles on the roads where they live.

American National Penn National
Urban Areas$104$275
Suburban Areas$85$212
Rural Areas$73$165

American National tends to offer the most affordable rates for drivers in all areas, regardless of if they're urban, suburban, or rural.

For policyholders in urban ZIP codes, American National Insurance Company's average premiums are around $171 less than Penn National Insurance. People who live in suburban areas pay about $127 less with American National compared to Penn National. Those in rural areas can expect to save around $92 with American National compared to Penn National.

American National vs. Penn National Discounts

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

But where do you even start? With what seems like a million different discounts out there, it may be hard to find all the ones you're eligible for.

Luckily, we did the hard work for you and looked at all of the different discounts American National and Penn National offer their customers so that you can find the company that has the most discounts and, therefore, the largest savings.

American National Penn National
ABS Discount 
Added PIP Option Discount 
Advance Quote Discount 
Anti-Theft Discount
Claim Free Discount 
Covid-19 Relief Discount 
Defensive Driver Discount
Distant Student Discount
Driver Training Discount
DRL Discount 
Excess Vehicle Discount 
Good Student Discount
Group Discount
Mature Driver Discount
Multi-Car Discount 
Multi-Policy Discount
New Business Discount 
Paid In Full Discount 
Passive Restraint Discount
PennID Discount 

Overall, Penn National has a slight advantage when it comes to total number of discounts. American National offers a grand total of 14 discounts, while Penn National has 16.

Both carriers offer several of the same discounts -- like anti-theft discounts, distant student discounts, discounts for being a good student, and multi-policy discounts -- but Penn National also offers discounts for ABS, added pip option , advance quote, 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.


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

You've seen the effect certain factors have on your insurance and the different discounts companies offer. But, at the end of the day, which carrier is the best fit for you?

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

  • You have less-than-stellar credit.
  • Your neighborhood is in a city.
  • You don't spend much time in your car.


Penn National might be best for you if...

  • You want to save extra money with discounts.

Hopefully, this guide has ben a valuable resource as you compare American National and Penn National. We also hope we've given you the information you need to make the best decision about your auto insurance.

But, at the end of the day, there's only one way to know for sure that you're getting the best possible deal on insurance -- comparing quotes from a handful of carriers, not just American National and Penn National. Luckily, sites like Compare.com make 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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American National vs. Penn National FAQs

Is American National or Penn National cheaper?

American National is the cheaper of the two carriers when looking at national average prices, with policies averaging $87 a month with American National and $218 for Penn National. However, that doesn't mean American National will be the cheapest company for every driver, since there are many different variables that come into play when it comes to your insurance bill.

Who is better, American National or Penn National?

Sadly, the answer truly is "it depends.". Neither carrier is "better" for everyone -- it all depends on the makeup of your unique car insurance profile.

Why do American National and Penn National offer me different rates?

Auto insurance companies use many different factors when determining the premiums they charge. Variables like gender, where you park your car, age, your driving record, and sometimes even things like your credit score can all come into play. Both American National and Penn National calculate rates using different formulas, so it's likely they'll offer different premiums. The best way to determine which company is the most affordable for you is by comparing personalized quotes from lots of different carriers.

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

The only way to find the car insurance carrier that's right for you is by getting quotes from multiple companies and finding the one best suited for your individual budget. Luckily, Compare.com makes 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 price. And maybe you'll find that the best company for you isn't American National or Penn National 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.

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