Introduction
Paying too much for car insurance? You’re not alone. The average American driver spends over $2,000 annually on auto insurance, but American National Car Insurance customers pay less than half that amount. With average rates of just $970 per year, American National has earned recognition as one of the cheapest car insurance companies in the United States.
But is cheaper always better? In this comprehensive review, we’ll examine everything about American National Car Insurance – from their rock-bottom rates to their customer service record – to help you decide if it’s the right choice for your needs.
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The Problem: Why Car Insurance Costs Keep Rising
American drivers face a perfect storm of rising insurance costs. According to industry data, the national average for full coverage auto insurance has reached $2,012 annually, driven by:
- Increased vehicle repair costs due to advanced technology in modern cars
- Rising medical expenses from accident-related injuries
- More frequent severe weather events causing comprehensive claims
- Inflation affecting everything from parts to labor costs
This makes finding affordable coverage more critical than ever – and it’s where American National Car Insurance potentially shines.
American National Car Insurance: Company Overview
Founded in 1905 and headquartered in Galveston, Texas, American National Insurance Company has been serving customers for over 115 years. The company operates nationwide, offering coverage in all 50 states, Washington D.C., and Puerto Rico.
Key Company Facts:
- Founded: 1905
- Headquarters: Galveston, Texas
- Coverage Area: All 50 states, DC, and Puerto Rico
- AM Best Rating: A (Excellent)
- Ownership: Brookfield Reinsurance (acquired in 2022 for $5.1 billion)
American National isn’t just an auto insurer – they offer a full range of insurance products, including home, life, business, and specialty coverage, making them attractive for bundling opportunities.
How American National Car Insurance Rates Compare
The Numbers That Matter
American National’s average annual rate is $970, which is substantially lower than the national average rate of $2,012 – that’s a savings of over $1,000 per year for the average driver.
| Coverage Type | American National | National Average | Savings |
| Full Coverage | $1,166 | $2,386 | $1,220 |
| Liability Only | $321 | $780 | $459 |
| Teen Drivers | $2,750 | $6,898 | $4,148 |
| After DUI | $1,477 | $3,737 | $2,260 |
Rate Breakdown by Driver Category
Teen Drivers (Biggest Savings)
- 17-year-old female: $2,608 (vs. $6,475 national average)
- 17-year-old male: $2,892 (vs. $7,321 national average)
Young Adults
- 25-year-old female: $1,139 (vs. $2,309 national average)
- 25-year-old male: $1,183 (vs. $2,459 national average)
Seniors
- 60-year-old female: $824 (vs. $1,724 national average)
- 60-year-old male: $812 (vs. $1,765 national average)
American National Coverage Options and Features
Standard Coverage Options
American National offers all the standard auto insurance coverage types:
- Liability Insurance (bodily injury and property damage)
- Collision Coverage
- Comprehensive Coverage
- Uninsured/Underinsured Motorist Protection
- Medical Payments (MedPay)
- Personal Injury Protection (PIP)
Unique Features and Add-Ons
Gap Insurance American National offers gap insurance, which pays the difference between your car’s actual cash value and the amount you owe on your car loan if your vehicle is totaled or stolen.
ACE Insurance ACE insurance stands for “added coverage endorsement” and is used when you need to replace parts on a damaged vehicle.
Free Rental Car Coverage For customers with collision and/or comprehensive coverage on their policy, car rental coverage is included at no extra charge.
Custom Equipment Coverage Up to $2,000 worth of customized equipment coverage is included with comprehensive and collision insurance.
READ ALSO: How to Save on Car Insurance in 2025 (Even If You’re a New Driver)
American National Car Insurance Discounts (Limited but Valuable)
Available Discounts
American National offers fewer discounts than many competitors, but the ones available can provide meaningful savings:
Multi-Policy Bundling
- Save by combining auto, home, and life insurance policies
Deductible Waiver
- If you’re in an accident with another American National customer, you may pay a lower deductible or none at all
Single Deductible
- If your vehicle and home are both insured with the company and are damaged by the same event, you’ll only need to pay one deductible
Claims-Free Cash Back
- Earn cash back for remaining claims-free for three years
Customer Service and Claims Experience
What Customers Say
In customer surveys, American National received generally positive feedback from consumers regarding customer service and claims. Key findings include:
Customer Service Satisfaction:
- 44% completely satisfied with ease of contacting customer service
- 50% completely satisfied with customer service quality
- 33% somewhat satisfied with contact experience
Claims Handling:
- 41% completely satisfied with ease of filing claims
- 55% completely satisfied with claim resolution
- 27% somewhat satisfied with claim resolution
Industry Ratings and Complaints
Financial Strength Ratings:
- AM Best: A (Excellent)
- S&P: A (Stable)
- Fitch: A (Stable)
- Weiss: B
Complaint Record: American National had far fewer than the expected number of complaints about auto insurance to state regulators relative to its size, according to NAIC data. Their NAIC Complaint Index score is 0.56, which is below average (meaning fewer complaints).
American National Pros and Cons
Advantages
Significantly Lower Rates
- American National is the cheapest car insurance company in comprehensive industry ratings
- Exceptional savings for high-risk drivers (teens, DUI, poor credit)
Nationwide Coverage
- Available in all 50 states, DC, and Puerto Rico
- Consistent service across the country
Strong Financial Stability
- A (Excellent) AM Best rating indicates strong ability to pay claims
- Over 115 years in business
Bundling Opportunities
- Multiple insurance products available for additional savings
- Single deductible for combined claims
Disadvantages
Limited Discounts
- Very few discounts compared to competitors
- Fewer opportunities to reduce premiums beyond base rates
No Online Quotes
- Must contact an agent to get a quote
- Less convenient than competitors offering instant online quotes
Below Average Digital Experience
- Website doesn’t offer much information about discounts
- Limited self-service options
How to Get the Best American National Rates
Money-Saving Strategies
1. Bundle Your Policies Combine auto, home, and life insurance for maximum savings.
2. Maintain a Clean Driving Record American National already offers competitive rates for drivers with violations, but clean records get the best prices.
3. Consider Higher Deductibles Raising your deductible can significantly lower your premium.
4. Review Coverage Annually Your insurance needs change – make sure you’re not over-insured.
5. Ask About All Available Discounts While limited, American National may have additional discounts not widely advertised.
Common Mistakes to Avoid
Don’t Fall Into These Traps
Choosing Coverage Based on Price Alone While American National offers low rates, ensure the coverage meets your needs.
Skipping the Fine Print Understand exactly what’s covered and what’s not, especially with unique features like ACE insurance.
Not Comparing Multiple Quotes Even with American National’s low rates, shop around to confirm you’re getting the best deal.
Overlooking Customer Service Consider how important phone support and claims handling are to your peace of mind.
American National vs. Top Competitors
Head-to-Head Comparison
| Company | Average Annual Rate | NerdWallet Rating | Pros | Cons |
| American National | $970 | 3.0/5 | Lowest rates, nationwide coverage | Few discounts, no online quotes |
| USAA | $1,279 | 4.7/5 | Excellent service, military focus | Military members only |
| Travelers | $1,549 | 4.8/5 | Great features, good service | Higher rates |
| Geico | $1,669 | 4.5/5 | Good digital experience | Average customer service |
When American National Makes Sense
Ideal Candidates
High-Risk Drivers
- Teen drivers and their parents
- Drivers with DUI convictions
- Those with poor credit scores
- Drivers with recent accidents or tickets
Budget-Conscious Consumers
- Drivers prioritizing low premiums over extensive features
- Those comfortable with agent-based service model
Multi-Policy Households
- Families needing auto, home, and life insurance
- Those who value bundling simplicity
Check If You Qualify for Low Rates →
How to Get Started with American National
Step-by-Step Process
Step 1: Find a Local Agent Use American National’s agent locator tool on their website to search by ZIP code.
Step 2: Gather Your Information
- Driver’s license information
- Vehicle details (VIN, make, model, year)
- Current insurance information
- Driving history
Step 3: Get Your Quote Discuss your coverage needs and get a personalized quote.
Step 4: Compare and Decide Consider the quote alongside competitors before making your decision.
Step 5: Purchase and Activate Complete the application and arrange payment to activate coverage.
Contact Information
- Phone: (800) 899-6519
- Hours: Monday-Friday 7:30 AM – 6:30 PM CST
- Email: Servicecenter@americannational.com
- Claims: (800) 333-2860
Frequently Asked Questions
Is American National legitimate?
Yes, American National is a legitimate, established insurance company with over 115 years of experience and strong financial ratings.
Why are American National rates so low?
The company focuses on efficient operations and has a conservative approach to risk, allowing them to offer competitive rates while maintaining profitability.
Can I get quotes online?
No, American National requires you to work with an agent for quotes, which some customers find less convenient than online options.
What’s the claims process like?
Most customers report satisfaction with the claims process, with 55% completely satisfied with claim resolution.
Do they offer coverage in my state?
American National operates in all 50 states, Washington D.C., and Puerto Rico.
The Bottom Line: Should You Choose American National?
American National Car Insurance stands out primarily for one compelling reason: dramatically lower rates. With average annual premiums of $970 compared to the national average of $2,012, the savings potential is substantial.
Choose American National if:
- You prioritize low rates above all else
- You’re a high-risk driver facing expensive premiums elsewhere
- You want to bundle multiple insurance types
- You’re comfortable working with agents rather than online tools
Look elsewhere if:
- You want extensive discount opportunities
- Online quoting and policy management are important to you
- You prioritize premium customer service features
- You need specialized coverage options
Get Your American National Quote Today →
Take Action: Start Saving Today
Insurance rates change frequently, and the best time to shop is now. American National’s low rates could save you over $1,000 annually compared to the national average, but you won’t know your specific savings until you get a quote.
Next Steps:
- Get a Quote: Contact an American National agent for your personalized rate
- Compare: Shop around with 2-3 other insurers to confirm the best deal
- Decide: Choose the policy that offers the best value for your specific needs
- Switch: Don’t delay – start saving on your next policy period
Remember, the cheapest insurance isn’t always the best insurance, but American National’s combination of low rates, strong financial stability, and nationwide coverage makes it worth serious consideration for many drivers.
Start Your Quote Comparison Now →
Insurance rates and availability vary by state and individual circumstances. This review is based on publicly available information and industry data as of 2025. Always verify current rates and coverage details with American National directly.
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