Auto-owners vs. Penn National: Which Company is the Best Fit for You?

Quick Facts

• Looking at the national averages for auto insurance, Auto-owners offers less expensive premiums than Penn National
• Auto-owners has more affordable rates for policyholders who are looking to purchase insurance with a spouse
• Penn National has cheaper prices in MD, NC, NJ, TN, and VA

Auto-owners or Penn National: Which Company has the Cheapest Car Insurance?

So, you're thinking about switching to 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 might have narrowed your search down to Auto-owners or Penn National as your top options, but between the two, which one will offer you more affordable premiums?

As you can see, Auto-owners has average rates that are around 18% a month less expensive than those from Penn National when looking at the national average rates for insurance.

However, that doesn't necessarily mean Auto-owners will be the cheaper option for every single driver. After all, auto insurance carriers can offer drastically different rates to every driver depending on rating factors like your credit score, your driving record, your age, or even where you call home (among other things). So, at the end of the day, rates from each company will differ quite a bit from person to person.

So, if you want to find out which of Auto-owners or Penn National is really the best for you, keep reading to see average premiums for each carrier broken down by a range of different rate factors.

Auto-owners vs. Penn National: Average Car Insurance Rates by State

Auto-owners and Penn National only compete against each other in two states, with Penn National offering more affordable prices to the average driver in all of them. If you live in Virginia, Auto-owners is the less expensive of the two companies when looking at the overall average rates. Penn National is the cheaper option in Tennessee.

That being said, there's a lot more that goes into your car insurance payment than just where you call home. Keep reading to learn more.

Which is the Best Company For Young Drivers?

Young drivers -- especially teens -- typically pay a lot for insurance compared to older drivers. Normally, that's because teen drivers are statistically much more likely to get into accidents since they have less experience on the roads.

But that doesn't mean that teen drivers have to just accept sky-high auto insurance prices. As you can see above, teens who use Auto-owners save 15% per month compared to those who use Penn National.

Even so, both carriers will offer you dramatically lower premiums by the time drivers turn 25. Penn National offers the steepest decrease, with 25-year-olds paying less than a third of what 18-year-old drivers are charged. That being said, Auto-owners still has the lowest rates at $164 per month.

Which is the Best Company for Retired Drivers?

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

When looking at Auto-owners and Penn National specifically, which company is best for retired drivers? Auto-owners gets the edge here, with average rates coming in at about $133 monthly compared to Penn National's $163.

Which is the Best Company for Married Drivers?

You may not be aware, but insurance premiums tend to be more expensive for those who are single than they are for married drivers. That's because policies for married policyholders usually cover several vehicles, which lots of companies will give you a discount for.

For single drivers, the difference in average prices between these two carriers is significant, with Auto-owners rates coming in at around 15% less than Penn National's. The advantage for married couples with Auto-owners is also obvious, where drivers save about $35 a month.

Auto-owners or Penn National: Average Rates by Gender

You may not know, but car insurance is typically more expensive for men than for women. That's because men are more likely to get into accidents and get tickets, which raises the chances of filing a claim with insurance.

With Auto-owners, women usually pay over $10 per month less than men, and around $5 less with Penn National.

Looking at overall affordability, Auto-owners comes out as the cheapest option for both genders, with average premiums 16% less for men and 19% cheaper for women.

Auto-owners vs. Penn National: 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. There are so many different coverages and terms that it can make it pretty confusing to find the right policy for you.

That being said, the most common policies that drivers look at fall into two categories -- liability coverage (that covers property damage and bodily injury 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 liability insurance, Auto-owners has the significant edge, with average monthly rates coming in at $99. If you want a full coverage policy with the same state minimum limits, Auto-owners again has the edge, with policies averaging about $260 a month to Penn National's $292.

Is Auto-owners or Penn National Better for Drivers with Spotty Records?

You've probably seen plenty of commercials from auto insurance companies offering great prices for good drivers, but that doesn't mean people with less-than-perfect driving records can't save money, too.

You'll probably end up paying more with at-fault collisions and speeding tickets on your record, but which of these two carriers offers the lowest rates to drivers with spotty records?

Which Company is Best for Drivers with Speeding Tickets?

Policyholders who use Auto-owners for their car insurance can generally expect their monthly bill to go up around 27% after getting a speeding ticket. Penn National policyholders can expect a less drastic increase of about 22%.

But Auto-owners is normally the more affordable option for drivers both with a ticket and with a clean record -- their rates are around 13% cheaper for drivers with clean records and 8% less expensive for those with a ticket.

Which Company is Best for Drivers After an Accident?

Auto-owners drivers who get in an accident can expect to see their prices increase by over $45, while those who have insurance through Penn National will see around a $65 increase.

At the end of the day, drivers who use Auto-owners end up with the cheaper prices after an accident, with average premiums coming in at $168 compared to Penn National Insurance's $206.

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, Penn National increases average prices by more than $200 per month -- that's nearly a 60% increase.

But if you end up with a DUI charge and are looking for more affordable rates, Auto-owners tends to be cheaper for the average driver, with monthly premiums coming in at about $264 to Penn National's $346.

How does Credit Score Impact Auto-owners and Penn National Rates?

In many cases, your credit score can come into play when companies determine your monthly bill. This isn't true for everyone (Michigan, for example, has banned the use of credit score as an auto insurance factor) but it will come into play for many policyholders.

Auto insurance carriers argue that those with poor credit scores are less likely to pay their bills on time every month, which raises the risk involved on their end, while the opposite is true for those with good credit.

Looking at Auto-owners and Penn National specifically, which carrier has the cheapest premiums for drivers at different credit levels?

Which Company is Best for Drivers with Good Credit?

If you have great credit, Auto-owners will usually reward you the most. For policyholders with "excellent" credit scores, Auto-owners comes in more than 40.99 less expensive. Drivers with "good" credit scores typically save around 29% with Auto-owners compared to average rates from Penn National.

Which Company is Best for Drivers with Bad Credit?

Auto-owners typically offers lower prices than Penn National when it comes to drivers with less-than-perfect credit. Drivers with "fair" credit pay about 15% a month less with Auto-owners compared to Penn National, and those with "poor" scores normally save an average of around 1% a month.

Is Auto-owners or Penn National Better for Drivers who Work from Home or Have Short Commutes?

The amount of time you spend behind the wheel of your car plays a big role in your monthly premiums. Generally, the more milage you put on your vehicle, 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 Auto-owners, with policyholders who drive the least paying about $1 less each month compared to those who drive 12,000 miles every year. Still, for drivers in both categories, Auto-owners is the more affordable carrier.

Auto-owners or Penn National: 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 substantial impact as well. Normally, if you live in a rural area with fewer cars on the road, you'll pay a little less for car insurance, while the opposite is true for people in urban areas.

Auto-owners tends to offer the cheapest premiums for drivers in every type of area, no matter if it's urban, suburban, or rural.

For drivers in urban ZIP codes, Auto-Owners Insurance's average rates are around 25% less than Penn National Insurance. People who live in suburban areas pay about 20% less with Auto-owners compared to Penn National. Those in rural areas can expect to save around 1% with Auto-owners compared to Penn National.

Auto-owners vs. Penn National Discounts

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

But with what seems like a million different discounts out there, it can be challenging to find all the ones you're eligible for 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 compared all of the different discounts offered by Auto-owners and Penn National so that you can find the company that has the most discounts and, therefore, the largest savings.

Auto-owners blows Penn National away when it comes to the sheer amount of discounts available, offering eight more discounts than Penn National.

There are a couple discounts both companies offer, but Auto-owners also offers discounts for company car, COVID-19 relief, education, and more.

On the other hand, Penn National has a few proprietary discounts of their own for things like added pip option discounts, DRL discounts, mature driver discounts, and more.

Final Thoughts: Is Auto-owners or Penn National Best for You?

So, we've broken down the average prices for many of the variables insurance carriers look at, and walked through the different discounts each company offers, too. That's all well and good, but at the end of the day, which insurance carrier is the best carrier for you and your specific profile and needs?

Auto-owners might be best for you if....

• Your driving record includes a DUI charge.
• You want the most robust protection via a "full coverage" policy.
• You live in an suburban area.

Penn National might be best for you if...

• You're looking for the best rates in MD, NC, NJ, TN, and VA.

Hopefully, this guide helps you get a better idea of the difference between Auto-owners and Penn National. We also hope we've given you the information you need to make the best decision when it comes to your car insurance.

At the end of the day, the sure-fire way to make sure you're getting the best deal on your auto insurance policy is to compare quotes from multiple companies, not just Auto-owners and Penn National. Luckily, sites like Compare.com do all the hard work for you. Just enter your ZIP code below and get free quotes from dozens of the top car insurance carriers in your area, all in just a few minutes.

Auto-owners vs. Penn National FAQs

Is Auto-owners or Penn National cheaper?

Auto-owners is the less expensive of the two companies when looking at national average premiums, with policies averaging $179 per month with Auto-owners and $218 for Penn National. However, that doesn't mean Auto-owners will be the most affordable company for each policyholder, since there are several different factors that are considered when it comes to your insurance cost.

Who is better, Auto-owners or Penn National?

Sadly, the only answer we can give you is "it depends.". Neither carrier is necessarily "better" for everyone -- it all boils down to your unique car insurance profile.

Why do Auto-owners and Penn National offer me different rates?

Insurance carriers use a lot of different variables when determining the prices they charge. Factors like age, your driving record, where you call home, gender, and sometimes even things like your credit score can all be used. Both Auto-owners and Penn National calculate premiums using different variables, so it's likely they'll offer different rates. The best way to determine which company is the lowest for you is by comparing personalized quotes from a bunch of different companies.

How do I know if Auto-owners or Penn National is right for me?

The only way to find the auto insurance carrier that's right for you is by getting quotes from several carriers and finding the one best suited for your individual budget. Luckily, Compare.com does all the hard work for you. Just enter your area information 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 company for you isn't Auto-owners 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.