The Best Cheap Philadelphia Car Insurance Companies

Erie and State Farm offer auto insurance policies under the average cost for Philadelphia, both for minimum coverage and full coverage.

The average annual cost of minimum coverage auto insurance in Philadelphia is $1,217, or about $101 per month.

That’s $602 per year more than the state average, making it the most expensive city in Pennsylvania for car insurance. Full coverage auto insurance costs $3,738 per year on average, or about $312 a month.

Cheapest auto insurance in Philadelphia: Erie

Erie and State Farm offer our sample driver the cheapest rates in Philadelphia, on average. Erie’s policy costs $844 per year while State Farm’s costs $1,127.

Former and current military members are highly encouraged to check out USAA, which has the overall cheapest annual policy at only $379, or about $32 per month.

The most inexpensive auto insurance you can buy is a minimum coverage policy, which is the least amount of coverage you need to legally drive in the state.

Find Cheap Auto Insurance Quotes in Philadelphia

A minimum coverage policy will cost less up front but only protects you against the cost of damage you cause to others. It doesn’t cover the cost of damage to your own vehicle. If you want to protect against the costs of damage to your own car, you should consider a full coverage policy.

Cheapest full coverage car insurance in Philadelphia: State Farm

State Farm had the cheapest full coverage insurance policy at a rate of $2,658. Erie, the second-cheapest company, is $270 more expensive than State Farm.

Eligible drivers should contact USAA, which has the cheapest coverage overall, at nearly half the rate of State Farm.

Full coverage insurance is more than three times as expensive as a minimum policy in Philadelphia, but it provides a different type of protection than liability insurance.

A full coverage policy meets the minimum coverage requirements of state law while including collision and comprehensive coverage. To summarize collision and comprehensive coverage:

• Collision insurance covers damage caused when you drive into another vehicle or object.
• Comprehensive insurance covers damage caused by something out of your control, including natural disasters, vandalism, theft and terrorism.

A good rule of thumb: Invest in a full coverage policy if your vehicle is fewer than 10 years old or worth more than $3,000. More specifically, you should consider buying full coverage if the cost of adding it is less than the value of your vehicle minus the policy deductible.

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Cheapest full coverage auto insurance for young drivers in Philly: Erie

Drivers under the age of 25 are seen as riskier drivers and will often pay substantially more for insurance. For example, young drivers insured with Allstate pay an average of $11,324 more than the average 30-year-old driver for a full coverage policy in Philly.

The most affordable insurers for young drivers seeking a full coverage policy is Erie and State Farm, which are both under $8,000. The cheapest option, USAA, costs $2,310 but is only available to current and former military personnel.

To get a more affordable rate, shop around and ask about discounts. Many companies offer discounts for safe driving, being a good student or having security devices in your car.

Another option is joining your parents’ policy. It will increase their annual premiums, but a combined policy costs much less than having two separate policies.

The average cost of adding an 18-year-old to a couple’s car insurance policy is about $1,510 every six months, but the average cost of an 18-year-old getting an individual policy is $3,589 per six months.

Cheapest car insurance in Philadelphia with a prior accident

Insurers will often raise your rates if you’ve been at fault in an accident in the past.

The insurance company that raised its annual quotes the least following an accident in Philadelphia was State Farm with an average increase of $517.

If you’re looking for an alternative, Erie increased its price by only $820, compared to an average increase of $1,823 across our sample insurers.

Eligible former and current military members should look into USAA. Its rates increased by $521, only $4 more than State Farm.

Depending on your insurer, your annual rate can increase by as much as $3,500 or as little as $500 following an accident. These differences show how crucial it is that you get free car insurance quotes from multiple insurers and ask about how your own driver profile will affect your quote.

In addition to researching different companies and looking into discounts, you should also ask companies if they have an accident forgiveness policy. Accident forgiveness may cost extra, but it can protect you from a price hike following an accident.

Best auto insurance company in Philadelphia

Nationwide and Progressive tie for having the best customer service of insurers serving Philadelphia, measured by the rate of customer complaints.

Any company with a complaint index less than 1.0 has customer service that is considered better than average compared to other insurers.

Although Nationwide and Progressive have the best customer service in Philadelphia, their rates are higher than the state average. Erie and State Farm, which have some of the cheapest rates, are in the middle when it comes to customer service. When selecting insurers, you should balance the factors that are most important to you.

Average cost of auto insurance by neighborhood and ZIP code

Every neighborhood of Philly is different, with some having higher rates of crimes or accidents. This will result in insurance rates that can vary by the hundreds depending on where you live. Residents in the most expensive area, Tioga, can pay an annual average of $329 more on minimum auto insurance than residents of Pennsport, one of the cheapest neighborhoods.

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Driving in Philadelphia: Minimum car insurance coverage requirements

Minimum auto insurance coverage is determined at the state level. Pennsylvania law sets the car insurance requirements at the following limits:

While these coverages are required for every driver in Pennsylvania, it might not be sufficient to meet your own needs. When shopping for minimum coverage, you should also ask insurance agents about additional coverages they offer. Getting into an accident can cost you hundreds of thousands of dollars if you’re not sufficiently protected.

Methodology

We collected data from seven insurance companies in Philadelphia. Our default driver was a 30-year-old single man who owns a 2015 Honda Civic EX and shopped for a minimum coverage policy, except in instances when we state otherwise. He also has a below-average credit score or no credit history.

When analyzing full coverage, the following limits were used:

• Bodily injury liability: $50,000 per person/$100,000 per accident
• Property damage liability: $25,000 per accident
• Uninsured/underinsured motorist bodily injury: $50,000 per person/$100,000 per accident
• Comprehensive and collision: $500 deductible

ValuePenguin’s analysis used insurance rate data from Quadrant Information Services. These rates were publicly sourced from insurer filings and should be used for comparative purposes only — your own quotes may be different.

Originally Appeared Here