Is Penn National Good for Auto Insurance?
Last Updated on January 13, 2022
Penn National Insurance is a property and casualty insurance company serving 11 states.
Founded in 1919, Penn National Insurance has over 100 years of experience providing home insurance, auto insurance, and other insurance products.
Is Penn National good for car insurance? Should you buy auto insurance through Penn National? Find out everything you need to know about Penn National today in our review.
Table of Contents:
- About Penn National
- Penn National Insurance Products
- How Does Penn National Auto Insurance Work?
- What Makes Penn National Unique?
- Penn National Auto Insurance Discounts
- Penn National Reviews & Ratings: What Do Customers Have to Say?
About Penn National
Penn National was founded in 19019 by a farmers’ trade organization. Farmers gathered together to obtain more affordable workers’ compensation protection for their workers.
Penn National was founded as a mutual insurance company and continues to be a mutual insurance company today. That means policyholders – not shareholders – own the company.
As Penn National’s official website explains: “Our policyholders own us. We work for them, and not for Wall Street investors.”
Today, Penn National sells a range of business insurance, auto insurance, and home insurance. Penn National employs more than 830 people, selling car insurance in 11 states through more than 1,200 independent agency operations.
41% of Penn National’s premiums are written in Pennsylvania. The company also has a strong presence in North Carolina (18% of all written premiums), New Jersey (8%), Maryland (6%), and Alabama (4%), along with smaller presences in Virginia, Tennessee, Wisconsin, and other states.
Penn National is headquartered in Harrisburg, Pennsylvania.
|Penn National Contact Information|
|Address||2 N. Second St.
Harrisburg, PA 17101
Penn National Insurance Products
Penn National is best-known for its personal car insurance, and it’s the company’s biggest line of business. The company is also known for its liability insurance, workers’ compensation insurance, commercial automobile insurance, and homeowners insurance.
Auto: Penn National sells auto insurance in Pennsylvania, New Jersey, Maryland, Virginia, Tennessee, and North Carolina. You can buy full coverage car insurance, basic liability coverage, and other car insurance options through Penn National.
Home: Penn National sells home insurance in the same states listed above. You can buy homeowners insurance, renters insurance, condo insurance, and other insurance products through Penn National.
Umbrella Coverage: Homeowners can extend liability coverage with umbrella coverage. For added protection, you can buy more liability coverage and protect your assets.
Business Insurance: Penn National protects businesses with a range of insurance products and policies. Penn National covers auto parts and supply stores, auto repair and service stores, hotels, barbershops, beauty salons, beverage stores, car washes, contractors, manufacturers, pharmacies, printers, restaurants, and other businesses across its covered areas.
Penn National sells insurance in 11 states, although products and services vary between states. The company sells personal and commercial insurance in Pennsylvania, New Jersey, Maryland, Virginia, Tennessee, and North Carolina.
Penn National also maintains a presence in South Carolina, Alabama, and Delaware, where the company sells commercial insurance only.
Penn National sells insurance in Wisconsin and Iowa through an affiliate, Partners Mutual Insurance (headquartered in Waukesha, Wisconsin).
How Does Penn National Auto Insurance Work?
Penn National provides similar auto insurance products and services to any company in its target markets. You can buy full coverage car insurance, bare minimum liability coverage, roadside assistance, and other types of insurance products.
Liability Coverage: Most states require drivers to carry a specific amount of bodily injury liability coverage and property damage liability coverage.
Collision Coverage: If your car is damaged in an accident, then you can make a claim with your collision coverage to cover the costs of repairs.
Comprehensive Coverage: Comprehensive coverage covers all damage to your vehicle outside of accidents, including theft, vandalism, collisions with animals, hail damage, and more.
Uninsured and Underinsured Motorist Coverage: Millions of drivers in America drive without insurance every day. Some states require uninsured and underinsured motorist coverage, while some drivers buy it for added peace of mind.
Roadside Assistance: For a few extra dollars per month, Penn National adds roadside assistance to your insurance policy. You get free tire changes, fuel deliveries, and towing (up to certain limits) if your vehicle breaks down while driving.
Loan and Lease Coverage: Penn National offers loan and lease coverage, which pays off your remaining loan or lease after a total loss accident. This is also known as gap coverage with some insurers.
Replacement Cost Auto Coverage: If you have purchased a car within the last 30 days or are in the process of purchasing a new car, then you may consider replacement cost auto coverage. It covers damage to your new vehicle without considering depreciation costs.
What Makes Penn National Unique?
Drivers in Pennsylvania, North Carolina, and other covered Penn National states have many options for car insurance. Why buy car insurance with Penn National? Here are some of the unique advantages touted by the company:
Auto PennPac: Penn National offers a unique type of auto insurance coverage package called Auto PennPac. It includes pet coverage, death benefit, seat belt and restraint benefits, and other bonus coverages. If you have collision and comprehensive coverage, then Auto PennPac also gives you added coverage for towing and labor, travel interruption, locksmith services, airbag replacement, personal effects, non-owned trailer, sound equipment, and deductible waivers, among other advantages. Coverage varies from state to state.
Mutual Insurance Company: Penn National is a mutual insurance company, which means it’s owned by policyholders like you – not by shareholders. That means Penn National is not committed to cutting costs to serving shareholders: they’re owned by policyholders.
Strong Customer Service & Claims Satisfaction: Penn National is a smaller, regional insurance company. To compete with its larger competitors, Penn National tries to excel in customer service and claims satisfaction. The company holds itself to high standards of integrity and respect while dealing with claims, and Penn National has strong ratings from customers across its covered states.
Founded by Farmers: As the Penn National official website explains, the company was founded by “salt of the earth people joining together for their own mutual protection.” The company serves customers across urban and rural areas of its covered states while remaining committed to customer service and quality.
Penn National Auto Insurance Discounts
Penn National offers a standard range of auto insurance discounts, including all of the following:
Bundling Discounts: If you bundle homeowners insurance with your auto insurance policy through Penn National, then you receive a discount across all policies.
Paid in Full Discounts: By paying your premium in full upfront (say, annually or semi-annually instead of monthly), you could receive a significant discount on car insurance.
Passive Restraint Discount: Passive restraint discounts, including automatic seatbelts and airbags, can get you a discount on your Penn National car insurance policy.
Daytime Running Light Discounts: Penn National is one of the few insurance companies offering a specific discount for daytime running lights. Many new vehicles have daytime running lights, which have been proven to reduce the risk of accidents.
Antilock Brakes: Penn National offers discounts for antilock brakes, which have been required on all new vehicles since the mid-2000s.
Good Student Discount: If any students on your policy have a grade average of B or better, then they can qualify for Penn National’s good student discount.
Student Away at School Discount: If any student on your policy is attending school full time while living more than 100 miles away from home, then they qualify for a student away at school discount.
Driver’s Education Course: Any drivers who have passed an approved driver’s education course can obtain a discount with Penn National.
Multi-Vehicle Discount: If you insure multiple vehicles with Penn National, then you receive a discount across all policies.
Penn National Reviews & Ratings: What Do Customers Have to Say?
Penn National tends to have stronger-than-average ratings with customers across its covered states. Most customers agree that Penn National provides effective car insurance at discount rates while maintaining high standards for claims satisfaction and customer service.
On the review aggregator website Clearsurance, Penn National has an average rating of 4.28 stars out of 5 with 63 reviews. WalletHub is less enthusiastic about Penn National, giving the company 2.5 stars out of 5 with 80 reviews.
On the Better Business Bureau (BBB), Penn National has an average rating of A+ with a total of 13 complaints in the last 3 years.
J.D. Power does not rank Penn National, as the company is not one of the top 20 largest insurers in the United States or in any subregion.
However, A.M. Best does rate Penn National for the company’s financial strength. Penn National has a financial strength rating of A- (Excellent) from A.M. Best, a global organization that analyzes insurers based on assets and liabilities. Although it’s not as strong as competing companies, a rating of A- (Excellent) indicates Penn National should cover most policyholders’ claims in the near future.
Final Word on Penn National
Penn National is a Pennsylvania-based car insurance company offering competitively priced policies across multiple states. The company has a particularly strong presence in Pennsylvania and North Carolina, which account for roughly 60% of all premiums written.
To learn more about Penn National or to request a free estimate today, visit the company online at PennNationalInsurance.com.