Penn Starr Auto Insurance Review

Penn Star Auto Insurance was founded in November, 1996 and is based in Hatboro, PA. Penn Star is part of Penn-America Group which is a subsidiary of Global Indemnity, PLC headquartered in Ireland. The Pennsylvania Department of Insurance classifies Penn Star as a domestic stock casualty company organized in the Commonwealth of Pennsylvania. Read our auto insurance review and find the best car insurance with our ZIP code search!

About Penn Star

Penn Star offers fire, marine and casualty insurance. Penn-America’s website states the company offers “marketing and underwriting of general liability, commercial property and multi-peril insurance for small businesses located in small towns, suburban and rural areas nationwide.”

Products are offered through a select network of wholesale general agents who, in turn, work with local brokers. They are licensed in all fifty states and DC. They maintain an “A” rating (excellent) from A.M. Best. Rating agencies also note that they are a financially stable company with assets of $170.3 million.

Businessweek.com and other insurance marketing sites specifically state that Penn Star is not in the business of writing auto insurance policies. The company is not accredited by the Better Business Bureau.

According to the Global Indemnity website, they began offering commercial automobile coverage in 2009. However, a search of the affiliated company offerings does not show commercial auto coverage as a product offered. Penn Star does not maintain a web presence and Penn-America’s web presence, as well as that of Global Indemnity, PLC, is less comprehensive than that of other carriers.

Coverage Confusion

Various websites state that Penn Star does not offer automobile coverage. In their opinion, the confusion stems from the fact that brokers that sell Penn Star products often broker for other companies that do sell auto insurance. If a business gets a policy through Penn Star that does not mean that their auto coverage is through Penn Star as well.

A search on the claims portion of the Penn-America website indicates that claims can be filed online for commercial automobile coverage. The website lists the glass replacement and rental car company that they utilize for claims. E-mail addresses use the Global Indemnity website.

The United National Group (another subsidiary of Global Indemnity) offers program administration. A search on their website also lists commercial automobile claims coverage under products, but brings up the claims e-mail address for Global Indemnity.

Penn-America does write commercial policies for the following types of businesses:

• Adult Day Care
• Alarm Installers
• Animal Care Professionals
• Apartments
• Beauty/Grooming Professionals
• Dwellings (LRO)
• Builder’s Risk
• Contractor’s Equipment
• Day Care – Commercial
• Equipment Breakdown
• Exercise and Fitness Professionals
• E-Z Rate Artisans
• Healing Arts Professionals
• In-Home Day Care
• Motels/Hotels
• Pre-Cut Christmas Tree Lots
• Restaurants
• Special Events
• Teaching Professionals
• Umbrella Product
• Vacancy Risks

The Future of Penn Starr

Earlier this year, Global Indemnity, PLC retained Morgan Stanley to evaluate possible acquirers of some or all of its companies. In September, Global Indemnity announced that it had decided that it would continue as an insurer and would not sell any of its lines.

The company has also recently decided to repurchase up to $100 million of its ordinary Class A shares of stock. The timing and the amount of repurchase will depend on market conditions.

Whether Penn Starr or Penn-America will sell commercial auto insurance is unknown at this time. They do, however, appear to do claims administration as noted above. You will have to decide if they have the best auto insurance or not.

Thoughts on Penn Starr

According to all reliable sources and rating agencies, Penn Starr is a quality insurance carrier that provides fire, marine and casualty insurance for firms that larger carriers do not write or service. They do not write automobile coverage. Compare auto insurance companies by entering your ZIP code and comparing auto insurance quotes for FREE!