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

Quick Facts

• Based on national averages for auto insurance, State Farm offers significantly more affordable prices than Penn National
• State Farm offers less expensive average premiums for people who are single and purchasing car insurance by yourself
• State Farm offers more affordable rates for drivers who have an at-fault accident on their record

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

So, you're considering switching your auto insurance. After all, you've seen ads from all sorts of companies offering huge discounts. But exactly how much can you save by switching?

You might be considering Penn National or State Farm, but between the two, which one has cheaper premiums for insurance?

Looking at nationwide averages, Penn National is quite a bit more expensive than State Farm, with prices averaging $218 per month compared to just $158 with State Farm.

But that doesn't mean State Farm will necessarily be more affordable than Penn National for every single driver. After all, auto insurance companies can offer drastically different rates to each driver depending on rating factors like your credit score, where you call home, your age, or even your driving record (among other things), so premiums could differ drastically from person to person.

Wanting to know if Penn National or State Farm 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.

Penn National or State Farm: Average Car Insurance Rates by State

Penn National and State Farm compete against each other in five states, with State Farm offering less expensive rates to the average driver in all of them. Virginia has the most noticable difference, where State Farm prices are over 60% cheaper than car insurance premiums at Penn National.

There's a lot more that goes into your auto insurance payment than just the state you live in. Continue reading to learn more about how other factors will affect your rates.

Which is the Best Company For Young Drivers?

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

However, 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 $100 less a month by choosing State Farm over Penn National.

Even so, with both carriers, you'll see your rates decrease significantly by the time you turn 25. For example, average prices for Penn National policyholders drop nearly 60% and State Farm's rates lower almost 60% over that time.

Which is the Best Company for Retired Drivers?

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

But who has the best premiums for retired drivers between Penn National and State Farm? State Farm gets the edge, with rates for drivers 65 and older $52 less expensive than the national average for Penn National.

Which is the Best Company for Married Drivers?

Single policyholders tend to get offered slightly more expensive insurance premiums than married couples. That's usually because married policyholders tend to own and insure multiple cars, which can often earn you a discount.

When it comes to relationship status, State Farm is the clear winner for those who are single, with prices about $68 per month more affordable than Penn National, on average. For married drivers, the advantage is clear again - State Farm has the edge when it comes to average rates.

Penn National vs. State Farm: Average Rates by Gender

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

On average, women see premiums around 2% a month less with Penn National, and about 7% less with State Farm when compared to their male counterparts.

When it comes to the lowest prices for each gender, State Farm offers the cheapest average rates for both men and women. On average, women save about $63 per month and men save around $56 with State Farm compared to the average Penn National policyholder.

Penn National or State Farm: 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 car insurance can be pretty complicated. Everyone needs insurance, but there are so many different coverages and limits that it can be hard to find the right policy.

That being said, most policies end up falling into two different types of coverage -- liability only (which provides property damage and bodily injury coverage for other drivers and passengers if you cause a collision) and full coverage (which includes comprehensive and collision coverages that protect your own vehicle, alongside liability coverage).

If you're looking for state minimum liability limits, State Farm generally offers significantly cheaper premiums of $99 compared to Penn National's $144. When it comes to full coverage policies with similar limits, State Farm again has the edge, with policies about $75 a month less expensive than Penn National, on average.

Is Penn National or State Farm Better for Drivers with Spotty Records?

It's no big secret that drivers who are accident-free get better deals on their car insurance. But even if you have a spotty record, you can still find plenty of ways to save some cash on your monthly bill.

Tickets and at-fault accidents will most likely raise your prices, but is Penn National or State Farm cheaper for drivers with spotty records?

Which Company is Best for Drivers with Speeding Tickets?

Penn National policyholders can expect their rates to go up an average of $40 per month if they get a ticket, while State Farm typically raises premiums around $21 a month, on average.

However, State Farm has more affordable prices for drivers in both categories -- their rates are around 4% cheaper for drivers with clean records and 13% less expensive for those with a ticket.

Which Company is Best for Drivers After an Accident?

Both companies will increase rates pretty significantly if you get into an at-fault collision with Penn National raising by over $65. State Farm has a less extreme raise, but you can still expect to pay just under $30 more than you were prior to your first accident.

Overall, the more affordable prices come from State Farm, with monthly premiums averaging $163 compared to Penn National Insurance's $206.

Which Company is Best for Drivers with a DUI?

On average, a DUI offense is going to cost you much more than a single collision or speeding ticket when it comes to your auto insurance bill. Penn National drivers usually see a 60% climb in their insurance rates after a DUI charge, while State Farm will usually increase prices by about 25%.

How does Credit Score Impact Penn National and State Farm Rates?

In many cases, your credit score can come into play when carriers calculate your monthly bill. This isn't always the case (for example, Massachusetts and California are two states that ban the practice entirely), but it will come into play for lots of drivers.

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

Looking specifically at Penn National and State Farm, which carrier has the best rates for policyholders at different credit levels?

Which Company is Best for Drivers with Good Credit?

Which Company is Best for Drivers with Bad Credit?

Is Penn National or State Farm 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 car insurance carriers will charge for coverage. That's because the more miles you put on your car each year, the more likely you are to get into an accident and cause 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 premiums for State Farm, with policyholders who drive 6,000 miles yearly paying around $13 less each month compared to those who drive 12,000 miles every year. Still, State Farm is the cheaper option for drivers in both categories.

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

Where your home is can play a pretty big role in how much you pay for auto insurance. Normally, drivers who live in less densely populated rural areas will pay quite a bit less than urban policyholders because of the small number of vehicles that are on the roads in those areas.

State Farm boasts the most affordable average premiums for drivers in all areas, regardless of if they're urban, suburban, or rural.

For drivers in urban ZIP codes, State Farm offers rates about $185 monthly compared to Penn National's $275. People who live in suburban ZIP codes can expect to pay around $161 per month for State Farm and $212 for Penn National. Lastly, those in rural areas tend to get the lowest premiums from both companies, with average monthly prices coming in at $127 and $165 for State Farm and Penn National respectively.

Penn National vs. State Farm Discounts

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

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 can take advantage of.

Below, we've compared all of the different discounts offered by Penn National and State Farm so that you can see which company can save you the most money each month.

State Farm blows Penn National away when it comes to the sheer amount of discounts available, offering seven more discounts than Penn National.

Both carriers offer quite a few of the same discounts -- like anti-theft discounts, distant student discounts, discounts for getting driver training, and mature driver discounts -- but State Farm also offers annual mileage discounts, drive safe & save discounts, farm 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, advance quote discounts, group discounts, and more.

Final Thoughts: Is Penn National or State Farm Best for You?

So, you've seen how different variables 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, which insurance carrier is the best carrier for you and your specific driver profile?

State Farm might be best for you if....

• You have a clean record.
• Your credit score is high.
• You drive often but have a short commute.

Penn National might be best for you if...

• You have a more unique driver profile than those we mentioned above.

We hope this guide has ben a valuable resource as you compare Penn National and State Farm and that you can now make a more informed decision when it comes to 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 multiple companies, not just Penn National and State Farm. Luckily, sites like Compare.com make 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.

Penn National vs. State Farm FAQs

Is Penn National or State Farm cheaper?

Looking just at the national average prices, State Farm is the more affordable of the two companies, offering average rates of $158 a month compared to $218 for Penn National. But State Farm won't necessarily be the most affordable company for each policyholder, since there are several different factors (things like driving record, age, gender, etc.) that play a role in how much you pay.

Who is better, Penn National or State Farm?

Sadly, the answer truly is "it depends.". No single carrier is "better" for every driver -- it all depends on the makeup of your unique auto insurance profile.

Why do Penn National and State Farm offer me different rates?

Insurance carriers take a look at several different variables when calculating the rates they charge policyholders. Factors 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 Penn National and State Farm calculate prices using different formulas, so each one will most likely offer different premiums. The only real way to see which company is the cheapest for you is by comparing personalized quotes from lots of different companies.

How do I know if Penn National or State Farm 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 carriers 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 area information and you'll get free quotes from dozens of the best auto insurance companies in your area. That way, you can guarantee you're getting the best rate. And who knows, the best company for you might not be Penn National or State Farm 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.