Jane Dotson
Philadelphia is known for its cheesesteaks, the Liberty Bell, and the Philadelphia Orchestra, but its high population and status as a no-fault state also bump up auto insurance rates. The average driver in Philadelphia pays $1,028 per year for car insurance, but rates vary depending on age, address, driving history, and other factors. The biggest variable in insurance cost is often the company you choose, so it's important to shop around and compare quotes to get the best rate.
What You'll Learn
Philadelphia's auto insurance costs compared to Pennsylvania and the US
Philadelphias auto insurance costs compared to Pennsylvania and the US
The average cost of car insurance in Philadelphia is $2,638 per year, or $220 per month, according to Insure.com. This is $1,193 more than the average cost of car insurance in Pennsylvania, and $956 more than the national average. Philadelphia's average auto insurance cost is higher than most other places in the United States.
The cost of car insurance in Philadelphia is influenced by various factors, including the city's dense urban environment, higher rates of traffic accidents, theft, and vandalism, as well as the overall cost of living. The city's highly congested traffic is a significant factor, as accidents are more likely to occur.
The minimum car insurance requirements in Pennsylvania include $15,000 for bodily injury liability per person, $30,000 for bodily injury liability per accident, $5,000 for property damage liability per accident, and $5,000 for medical payments coverage. The average cost of full coverage car insurance in Pennsylvania is $1,280 per year, while the average cost of minimum coverage is $443 per year.
In Philadelphia, the average cost of full coverage car insurance is $2,638 per year, and the average cost of state minimum coverage is $790 per year. The cost of car insurance in the city varies depending on factors such as age, gender, driving record, and credit score. Teenagers face the highest auto insurance prices, with rates decreasing substantially as they enter their 20s.
When comparing insurance rates in Philadelphia to other cities in Pennsylvania, it is important to consider the different factors that can affect rates. For example, Pittsburgh has lower average car insurance rates than Philadelphia, possibly due to its smaller population and less congested roads.
To find affordable car insurance in Philadelphia, it is recommended to shop around and compare quotes from multiple insurance companies. Maintaining a clean driving record, improving credit scores, and taking advantage of available discounts can also help lower insurance costs.
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Cheapest companies for auto insurance in Philadelphia
Philadelphia has a higher average auto insurance cost than most other places in the United States, but there are still some good deals to be found. The cost of car insurance in Philadelphia is influenced by factors such as age, driving record, location, vehicle type, and personal coverage needs.
State Farm
State Farm offers the cheapest full-coverage car insurance in Philadelphia, at $148 per month, and the cheapest liability-only insurance, at $89 per month. State Farm also has the lowest rates for drivers with a DUI, an at-fault accident, or a speeding ticket on their record.
Travelers
Travelers is the second cheapest company for full coverage, at $157 per month, and the cheapest for minimum coverage, at $60 per month. It also has the most affordable insurance for young drivers seeking minimum or full coverage.
Erie
Erie is the third cheapest company for full coverage, at $192 per month. It has excellent customer service and robust coverage options, including the Erie Auto Plus full coverage package.
USAA
USAA has the best customer service of insurance companies serving Philadelphia. However, it is only available to current and former military personnel and their families.
Mile Auto
Mile Auto is the cheapest company for full coverage, at $89 per month. It offers pay-per-mile insurance, which is a good option for residents who don't drive their vehicles often.
Progressive
Progressive has some of the lowest average rates in Philadelphia and offers standard coverage options along with add-ons like custom parts and equipment coverage.
Geico
Geico has the second-lowest rates for full coverage and is a good option for anyone seeking a no-frills policy with low premiums.
Auto-Owners
Auto-Owners has affordable rates for minimum and full coverage and a wider selection of add-on coverage options than Geico.
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Auto insurance for teens in Philadelphia
Philadelphia has a higher average auto insurance cost than most other places in the United States. Teenagers are the drivers who face the highest auto insurance prices in the city. On average, teen drivers pay $4362 more than those in their 20s, which is the largest difference in premiums between any two age groups.
The cheapest car insurance for teens in Philadelphia is offered by Nationwide, with an annual rate of $2,676 for male and female teens. The second cheapest option is Travelers, with an annual rate of $3,015 for male and female teens.
The cheapest car insurance company in Philadelphia overall is State Farm, with rates starting at as little as $89 per month for liability-only coverage. The cheapest company for full coverage is Mile Auto, with rates starting at $89 per month.
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Auto insurance for adults in Philadelphia
Auto insurance in Philadelphia is more expensive than in most other places in the United States. The average cost of car insurance in Philadelphia is $2,446 per year, compared to the national average of $1,543. The cost of car insurance in Philadelphia varies depending on factors such as age, gender, driving record, and credit score.
For adults in Philadelphia, the average car insurance rate is $2,321 per year. The cheapest option for adults is Travelers, with an average annual rate of $1,579. Allstate is the most expensive option, with a sample rate of $3,528 per year.
It is important to note that car insurance rates are highly personalized and can vary based on individual factors. The best way to find affordable car insurance in Philadelphia is to compare quotes from multiple insurance providers and choose the one that best suits your coverage needs and budget.
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How to save on auto insurance in Philadelphia
Auto insurance in Philadelphia is more expensive than in most other places in the United States. However, there are ways to save money on auto insurance in the City of Brotherly Love.
Shop Around
Don't settle for the first quote you receive. Compare rates from multiple companies to find the best deal. State Farm, Erie, and USAA all have cheaper-than-average rates.
Maintain a Clean Driving Record
A history of accidents or traffic violations can increase your rates significantly. A speeding ticket will increase your rates by an average of 13% in Philadelphia, which is a difference of about $370 per year. An at-fault accident can increase your annual rate by as much as $222 per month.
Improve Your Credit Score
Keeping a good credit score can help you get more affordable auto insurance rates. On average, Philadelphia drivers who successfully move up to the "exceptional" credit tier from the "very poor" tier reduce their car insurance premiums by 61%. If you improve your credit rating from "very poor" to "fair", you can save $2,066 on auto insurance each year.
Bundle Policies
Many insurance companies offer discounts for bundling car insurance with other types of policies, such as homeowners or renters insurance.
Increase Your Deductible
Opting for a higher deductible can lower your monthly premiums because you agree to take on more financial responsibility in the event of a claim.
Choose the Right Coverage
While full coverage insurance is more expensive, it is generally recommended if your vehicle is less than 10 years old or worth more than $5,000. If your vehicle is older or worth less, a minimum coverage policy will cost less upfront.
Look for Discounts
Most auto insurance companies offer various discounts. For example, GEICO offers discounts for good students, good drivers, and multi-policies.
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Frequently asked questions
The average cost of car insurance in Philadelphia is $2,446 per year, which is significantly more expensive than the national average of $1,543. The average monthly cost is $204 for full coverage and $43 for state-mandated minimum coverage insurance.
According to multiple sources, State Farm offers the cheapest car insurance rates in Philadelphia, with an average rate of $89 per month for liability-only coverage. However, another source states that Travelers is the cheapest option, with an average annual rate of $1,548.
Foremost, Mile Auto, and State Farm are considered the best car insurance companies in Philadelphia, with strong financial strength ratings and high customer satisfaction scores.
Car insurance in Philadelphia is more expensive due to the city's dense urban environment, higher rates of traffic accidents, theft, and vandalism, as well as the overall cost of living. The city's congested traffic also contributes to higher insurance costs, as accidents are more likely to occur.
