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

Quick Facts

• Based on national averages for auto insurance, Farmers offers slightly more affordable premiums than Penn National
• Farmers offers less expensive average rates for policyholders who are looking to purchase insurance with a spouse
• Penn National offers more affordable premiums for policyholders who live in rural neighborhoods

Farmers or 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 pretty big savings, but exactly how much money can you save by switching?

You might be considering Farmers or Penn National as your top options, but between the two, which company will save you the most?

As you can see, Penn National is around $15 more a month than Farmers when looking at the national average rates for insurance.

That being said, Farmers may not be the most affordable or best option for each driver out there. Car insurance carriers vary their prices depending on things like how good your credit score is, where you live, how old you are, how clean your driving record is, and all sorts of other factors. So, at the end of the day, premiums from every company will differ quite a bit from person to person.

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

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

Farmers and Penn National only compete against each other in one states, with Penn National offering cheaper prices to the average driver in all of them. Tennessee has the most noticable difference, where Penn National rates are $26 less expensive than insurance premiums at Farmers.

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

Which is the Best Company For Young Drivers?

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

However, that doesn't mean that teen drivers have to just accept sky-high auto insurance prices. For example, 18-year-old drivers pay an average of 10% less per month by choosing Penn National over Farmers.

Even so, both companies will offer you dramatically lower premiums 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, Farmers still has the cheapest prices at $155 monthly.

Which is the Best Company for Retired Drivers?

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

But who has the best prices for retired drivers between Farmers and Penn National? Farmers gets the edge here, with average rates coming in at about $143 a month compared to Penn National's $163.

Which is the Best Company for Married Drivers?

Did you know that car insurance premiums are normally more affordable for married policyholders than they are for single policyholders? This usually boils down to married couples having several vehicles on their policy -- something quite a few insurance carriers will reward with discounts.

For those who are single, the difference in average prices between these two companies is not very significant, with Farmers rates coming in at around 2% less than Penn National's. But for married drivers, the advantage is clear - Farmers offers the cheapest average prices.

Farmers or Penn National: Average Rates by Gender

Because women are less likely to get speeding tickets and get into accidents, they run a lower risk of filing a claim with insurance. So, women tend to pay less for car insurance than men.

Men generally pay about 3% more a month than women with Farmers, and around 2% more with Penn National.

Looking at the data for each company specifically, Farmers offers the lowest average rates for both men and women, with average premiums $13 less for men and $15 cheaper for women.

Farmers 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.

It's no secret that auto insurance can be a complicated subject for most people. There are so many different limits and coverages that it can make it pretty confusing to find the right policy for you.

But most policies end up falling into two different types of coverage -- liability coverage (that covers property damage and bodily injury for other drivers and their 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 limits for liability insurance, Farmers has the edge, with average monthly prices coming in at $126. If you want a full coverage policy with the same state minimum limits, Farmers again has the edge, with policies averaging about $281 per month to Penn National's $292.

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

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

It's no secret secret that speeding tickets and collisions lead to higher rates, but which carrier -- Farmers or Penn National -- has the most affordable prices for drivers with less-than-perfect records?

Which Company is Best for Drivers with Speeding Tickets?

Policyholders who use Farmers for their auto insurance can typically expect their monthly bill to go up around 21% after getting a speeding ticket. Penn National policyholders can expect a bit more drastic of an increase of about 22%.

Even so, Penn National is normally the cheaper option for drivers both with clean records and with a ticket -- their rates are around 14% more affordable for drivers with clean records and 13% less expensive for those with a ticket.

Which Company is Best for Drivers After an Accident?

Farmers 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 around a 35% increase.

At the end of the day, the more affordable premiums come from Penn National, with average rates coming in at $206 compared to Farmers Insurance's $224.

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 premiums by more than $200 a month -- that's nearly a 60% increase.

But if you end up with a DUI charge and are looking for more affordable prices, Farmers tends to be cheaper for the average driver, with monthly premiums coming in at about $221 to Penn National's $346.

How does Credit Score Impact Farmers and Penn National Rates?

Did you know many insurance companies take into account your credit score when determining rates? This isn't true for everyone (for example, Michigan and California are two states that ban the practice entirely), but it might come into play for a lot of policyholders.

Car insurance carriers argue that someone with bad credit is less likely to pay their bills on time, which makes them riskier to insure. Because of that, drivers with bad credit will often be forced to pay more.

So, which company offers the best prices for policyholders with poor, average, or good credit?

Which Company is Best for Drivers with Good Credit?

If you have a solid credit score, Penn National will usually reward you the most. For drivers with "excellent" credit scores, Penn National comes in NaN less expensive. Drivers with "good" credit scores typically save around 2% with Penn National compared to average premiums from Farmers.

Which Company is Best for Drivers with Bad Credit?

If you have a below average credit score, it can be somewhat of a toss-up as far as which company offers you the best rates. Drivers with "fair" credit pay about 0% less with Penn National than Farmers, but those whose credit is considered "poor" have it flipped -- saving around 20% per month with Farmers.

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

Did you know that the amount of time you spend in your car have a sizable impact on how much auto insurance companies will charge for coverage? Generally, those who drive less will end up with cheaper premiums since there's less of a chance of causing an accident and filing an insurance claim.

In this case, neither Farmers or Penn National report increasing prices for drivers with higher annual mileage figures. Still, Farmers comes out as the cheapest for drivers at both intervals, whether they put 6,000 or 12,000 miles on their vehicle yearly, with average premiums of $203 a month for both.

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

Where you call home can play a considerable role in how much you pay for insurance. Usually, those who live in urban areas will pay more than policyholders in rural areas since there are a lot more cars on the roads where they live.

Farmers boasts the most affordable average rates in urban and suburban areas, while Penn National wins in rural areas.

Those in rural areas can expect to save about $5 with Penn National compared to Farmers. People who live in suburban areas pay around $23 less with Farmers compared to Penn National. For drivers in urban ZIP codes, Farmers Insurance's average prices are about $24 less than Penn National Insurance.

Farmers 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 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 looked at all of the different discounts Farmers and Penn National offer their customers so that you can see which one can save you the most money each month.

Farmers blows Penn National away when it comes to the sheer amount of discounts available, offering 28 different discounts to Penn National's 16.

Both carriers offer quite a few of the same discounts -- like advance quote discounts, discounts for being a defensive driver, distant student discounts, and group discounts -- but Farmers also offers discounts for alternative fuel, EFT, ESC, 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, pennid discounts, and more.

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

You've seen the role certain variables have on your auto insurance and the different discounts companies offer. But, when it comes down to it, is Farmers or Penn National the best company for you and your specific profile and needs?

Farmers might be best for you if....

• You will be the only person on the insurance policy.
• You're looking for the best rates on liability only coverage.
• You drive fewer than 6,000 miles annually.

Penn National might be best for you if...

• You live in one of the following states: Maryland, North Carolina, New Jersey, Tennessee, and Virginia.
• You want to save money on your car insurance after a collision.
• You want to save money while purchasing insurance for a teenager.

Hopefully, this guide helps you get a better idea of the difference between Farmers and Penn National and that you can now make a more informed decision when it comes to your car 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 auto insurance -- comparing quotes from multiple carriers, not just Farmers 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 insurance companies in your area, all in just a few minutes.

Farmers vs. Penn National FAQs

Is Farmers or Penn National cheaper?

Farmers is the more affordable of the two carriers when looking at national average premiums, with policies averaging $203 per month with Farmers and $218 for Penn National. However, that doesn't mean Farmers will be the lowest company for everyone, since there are several different factors that are considered when it comes to your auto insurance payment.

Who is better, Farmers or Penn National?

Sadly, the only answer we can give you is "it depends.". No one carrier is necessarily "better" for each policyholder -- it all boils down to your unique car insurance profile. For example, Penn National is less expensive for drivers with excellent credit, while Farmers offers more affordable prices for drivers with a recent DUI.

Why do Farmers and Penn National offer me different rates?

Insurance companies use many different variables when calculating the premiums they charge. Things like your driving record, age, gender, where you park your vehicle, and sometimes even things like your credit score can all be used. Both Farmers and Penn National use different formulas, so it's likely they'll offer different prices. The best way to determine which company is the cheapest for you is by comparing personalized quotes from many different carriers.

How do I know if Farmers 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 a handful of 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 auto insurance carriers for free. That way, you can guarantee you're getting the best premium. And maybe you'll find that the best company for you isn't Farmers 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.