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

Quick Facts

• Looking at the national averages for car insurance, Penn National offers significantly cheaper rates than Encompass
• Encompass offers more discounts than Penn National Insurance
• Penn National tends to be a much less expensive option for policyholders who drive a short distance to work everyday

Encompass vs. Penn National: Which Company has the Cheapest Car Insurance?

Are you considering a new insurance policy? You've probably seen commercials and billboards from companies offering big discounts, but exactly how much money can you save by switching?

You might have narrowed it down to Encompass or Penn National, but which one will offer you cheaper prices?

Looking at nationwide averages, Penn National has average rates that are about 55% per month less expensive than those from Encompass.

That being said, Penn National may not be the most affordable or best option for each driver out there. Insurance companies use a ton of complex algorithms to calculate rates, so depending on how good your credit score is or where you live (among a variety of other factors), you could see wildly different prices from the ones above.

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

Encompass or Penn National: Average Car Insurance Rates by State

Encompass and Penn National compete against each other in four states, with Encompass offering more affordable prices to the average driver in all of them. If you live in Maryland, Encompass is the cheaper of the two carriers when looking at the overall average premiums. Penn National is the less expensive option in New Jersey, Tennessee, and Virginia.

But there's more to calculating car insurance rates than just the state you live in. Keep reading to learn more.

Which is the Best Company For Young Drivers?

Teen drivers will almost always have the most expensive insurance premiums of any group out there on the road. The reason is that young, inexperienced drivers are statistically much more likely to get into an accident that results in an insurance claim, making them much riskier to insure.

But that doesn't mean teen drivers can't still save money on their auto insurance. For example, 18-year-old drivers pay an average of more than $500 less a month by choosing Penn National over Encompass.

However, with both companies, you'll see your rates drop significantly by the time you turn 25. For example, average prices for Encompass policyholders decrease over 65% and Penn National's rates reduce nearly 60% over that time.

Which is the Best Company for Retired Drivers?

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

When looking at Encompass and Penn National specifically, which carrier is best for retired drivers? Penn National gets the edge, with rates for drivers 65 and older $172 more affordable than the national average for Encompass.

Which is the Best Company for Married Drivers?

Did you know that car insurance prices are typically more expensive for single policyholders than they are for married drivers? That's usually because married couples tend to own and insure several cars, which can often earn you a discount.

When it comes to relationship status, Penn National is the clear winner for those who are single, with premiums around $321 per month cheaper than Encompass, on average. The advantage for married policyholders with Penn National is also obvious, where drivers save more than $150 a month.

Encompass vs. Penn National: Average Rates by Gender

Men are statistically more likely than women to get into accidents and file an insurance claim. That means when it comes to auto insurance men will normally end up paying a little more.

On average, women see rates almost $25 per month more affordable with Encompass, and about $5 cheaper with Penn National when compared to their male counterparts.

Looking at overall affordability, Penn National offers the most affordable average premiums for both men and women, with average prices 54% less for men and 53% cheaper for women.

Encompass or 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, car insurance isn't the easiest topic to understand. There are so many different coverages and limits that it can make it pretty confusing to find the right policy.

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

If you're looking for state minimum liability insurance, Penn National typically offers significantly less expensive premiums of $144 compared to Encompass's $302. When it comes to full coverage policies with similar limits, Penn National again has the edge, with policies around $350 a month more affordable than Encompass, on average.

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

You've probably seen plenty of commercials from insurance carriers offering great rates 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 collisions and tickets on your record, but which of these two companies offers the lowest prices to drivers with less-than-ideal driving records?

Which Company is Best for Drivers with Speeding Tickets?

Encompass policyholders can expect their premiums to go up an average of $61 per month if they get a ticket, while Penn National usually raises prices about $40 a month, on average.

Even so, Penn National tends to offer the best prices for drivers both with clean records and with a speeding ticket. Drivers with a clean record can save around $88 per month and drivers with a ticket can save about $109 a month with Penn National Insurance.

Which Company is Best for Drivers After an Accident?

Both carriers will increase rates pretty significantly if you get into an at-fault accident with Encompass raising by over $100. Penn National has a less extreme raise, but you can still expect to pay more than $65 more than you were prior to your first collision.

Overall, the cheaper premiums come from Penn National, with monthly rates averaging $206 compared to Encompass Insurance's $328.

Which Company is Best for Drivers with a DUI?

If you get a DUI charge, you can expect some pretty significant increases in your monthly car insurance bill -- normally a lot more than a collision or speeding ticket. For example, Encompass increases average prices by over $500 per month -- that's just under a 80% increase.

If you have a DUI on your record and are looking for more affordable premiums, Penn National tends to be the much less expensive option with average prices of $346 a month compared to 1020 from Encompass.

How does Credit Score Impact Encompass and Penn National Rates?

You may not realized it, but your credit score can come into play when companies determine your monthly bill. This isn't always the case (for example, Hawaii and Massachusetts are two states that ban the practice entirely), but it does affect a lot of drivers out there.

The reasoning insurance carriers use is that policyholders with bad credit will be less likely to pay their bills on time; so generally, they'll be asked to pay more, while those with good credit will be rewarded with more affordable rates.

Looking at Encompass 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 a solid credit score, you'll usually find a better deal with Penn National. Policyholders with "excellent" credit can save nearly 55% compared to Encompass, and those with "good" scores can also expect to see savings -- around $214 or 54% less expensive each month.

Which Company is Best for Drivers with Bad Credit?

Penn National typically offers lower rates than Encompass when it comes to drivers with bad credit. Drivers with "fair" credit pay about $262 a month less with Penn National compared to Encompass, and those with "poor" scores usually save an average of around $327 monthly.

Is Encompass 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 how much auto insurance companies will charge for coverage. Generally, those who drive less will end up with cheaper prices since there's less of a chance of getting into an accident and causing an insurance claim.

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 rates for Encompass, with drivers who put 6,000 miles on their car every year paying about $2 less each month compared to those who drive 12,000 miles annually. Still, Penn National is the more affordable option for drivers in both categories.

Encompass vs. Penn National: Compare Rates for Urban, Suburban, and Rural Drivers

Where your home is can play a large role in how much you pay for car insurance. Normally, drivers who live in heavily-populated urban areas will pay quite a bit more than rural policyholders because there are a lot more vehicles on the road in those areas, which increases the chances of an accident.

Penn National boasts the cheapest average premiums for drivers in all types of areas, no matter if they're urban, suburban, or rural.

Drivers in rural ZIP codes see the most affordable prices from both carriers, but Penn National comes out on top with average premiums around $165 per month. Penn National also has cheaper average rates for policyholders in urban and suburban ZIP codes -- a 51% and 51% per month respective difference when compared to Encompass drivers in similar areas.

Encompass vs. Penn National Discounts

Regardless of why you might be in the market for a new insurance policy, you're always going to want to save as much money as possible, and the best way to do that is by utilizing as many auto insurance discounts as you can.

The difficult part is finding all of the discounts you can take advantage of, since it can feel sometimes like every carrier has different discounts and each one is advertised differently.

In the table below, we've broken down all of the different discounts offered by both Encompass and Penn National so that you can easily see which company offers the most discounts and see which ones you might be able to take advantage of.

Encompass knocks Penn National out of the park when it comes to the sheer number of discounts available, offering 10 more discounts than Penn National.

Both companies offer quite a few of the same discounts -- like advance quote discounts, discounts for being a defensive driver, distant student discounts, and discounts for being a good student -- but Encompass also offers EFT discounts, employee discounts, fire/fisher discounts, and more that Penn National does not.

On the flip side, Penn National has a couple unique discounts of its own -- added pip option discounts, mature driver discounts, pennid discounts, and more.

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

So, you've seen how different factors can affect your car insurance premiums. We've broken down the different discounts each company offers, too. That's all well and good, but when it comes down to it, is Encompass or Penn National the best one for you, your vehicle, and your wallet?

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

• You have a clean driving record, free of accidents, tickets, or DUIs.
• You have below-average credit.
• You're buying auto insurance for a teen and looking for a wallet-friendly option.

Encompass might be best for you if...

• You're thinking about moving to another state -- Penn National Insurance is only available in five states.
• You're looking for discounts -- Encompass has the most.

We hope this guide helps you get a better idea of the difference between Encompass and Penn National and that you can now make a more informed decision when it comes to your 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 several carriers, not just Encompass and Penn National. Luckily, Compare.com does all the hard work for you. Simply enter your ZIP code below and get free quotes from dozens of the top car insurance companies in your area, all in just a few minutes.

Encompass vs. Penn National FAQs

Is Encompass or Penn National cheaper?

Looking just at the national average rates, Penn National is the less expensive of the two carriers, offering average rates of $218 a month compared to $466 for Encompass. But Penn National won't necessarily be the cheapest carrier for every driver, since there are lots of different variables (things like driving record, age, gender, etc.) that play a role in how much you pay.

Who is better, Encompass or Penn National?

Sadly, the real answer is "it depends.". No single company is "better" for each driver -- it all depends on what your unique insurance profile looks like.

Why do Encompass and Penn National offer me different rates?

Auto insurance companies take a look at many different factors when calculating the prices they charge policyholders. Variables like where you park your car, age, where you live, gender, and sometimes even things like your credit score can all be taken into consideration. Both Encompass and Penn National calculate rates using different formulas, so each one will most likely offer different prices. The only real way to see which carrier is the most affordable for you is by comparing personalized quotes from a variety of different carriers.

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

The only way to find the insurance company that's right for you is by getting quotes from a handful of companies and finding the one best suited for your individual budget. Luckily, sites like Compare.com do all the hard work for you. Just enter your ZIP code and you'll get free quotes from dozens of the best car insurance carriers in your area. With those, you can guarantee you're getting the best premium. And who knows, the best carrier for you might not be Encompass or Penn National at all!

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.