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When it comes to car insurance, drivers in Philadelphia pay an average of $3,300 per year (about $275 per month) for full coverage and $752 per year (about $63 per month) for minimum coverage. This is far above the respective 2022 national averages of $1,771 and $545 per year. With high average rates, Philadelphia drivers may be interested in finding affordable insurance without sacrificing coverage options or great customer service. Bankrate can help. Our review of the largest car insurance companies by market share in the City of Brotherly Love may help you find the best cheap car insurance for your needs.
Best cheap car insurance companies in Philadelphia
To determine the best cheap car insurance companies in Philadelphia, we started by analyzing average premiums from Quadrant Information Services. Based on our research, the cheapest car insurance companies for full coverage in Philadelphia include Geico, State Farm, Erie, Progressive and Westfield.
We know that price isn’t everything, though, and that finding the best car insurance company for your needs is also important. To help you with that goal, we ranked each provider based on our proprietary Bankrate Score. This system takes into account average rates, coverage options, available discounts, customer satisfaction rankings from J.D. Power, digital tools and more. We ranked each company on a scale of 0.0 to 5.0. The higher a company’s Bankrate Score, the more highly that company ranked in the individual rating categories.
|Insurance company||Bankrate Score||J.D. Power score (Mid-Atlantic region)||Average annual premium for minimum coverage||Average annual premium for full coverage|
Geico offers some of the cheapest full coverage car insurance in Philadelphia. With an average rate nearly 60 percent lower than the city’s average, Geico might be a great choice for drivers on a budget. The company also has a long list of car insurance discounts with potential savings for professional affiliation, telematics programs, bundling and good students. However, Geico does have a lower-than-average J.D. Power customer satisfaction score in the Mid-Atlantic region, which could indicate some customers are not satisfied with the level of service.
Learn more: Geico Insurance review
State Farm is the largest insurer of personal autos in the country by market share, so if you want to work with a well-known carrier, it could be a good option. The company offers two telematics programs, Drive Safe & Save for adults and Steer Clear for teens. These may help further bring down your rates with the carrier. State Farm doesn’t offer gap insurance, though, and accident forgiveness coverage cannot be purchased (you can only earn it after a certain number of years of accident-free driving).
Learn more: State Farm Insurance review
If you’re looking for cheap coverage that also comes with a number of add-on options, Erie might be a good choice. The company, which is only available in 12 states, offers plenty of endorsements, like pet coverage and locksmith services. Erie also boasts the highest official J.D. Power customer satisfaction score in the Mid-Atlantic region. However, J.D. Power gave Erie a below-average ranking for digital service experience, which means it might not be the best company if you want to handle your policy online or by mobile.
Learn more: Erie Insurance review
If you want to save time and money, Progressive may be a good choice. It offers one of the cheapest average full coverage premiums on our list and boasts strong digital tools. One standout feature is the Name Your Price option, which allows you to input your car insurance budget and then shows you a range of options that fit. Unfortunately, Progressive has the lowest J.D. Power customer satisfaction score on our list, so it may not be the best option for drivers who value customer service.
Learn more: Progressive Insurance review
Westfield is perhaps not as well known as the other companies on our list, but it may still be worth getting a quote. Westfield sells its products through a network of local independent agents, who may be intimately familiar with the needs of Philadelphia drivers. Although it’s a smaller carrier, it still offers various endorsements, including the ability to insure multiple vehicle types, like RVs, autos and campers, on a single policy. Westfield’s digital tools are lacking functionality, though, so it might not be the best company for those who value a tech-forward approach.
Learn more: Westfield Insurance review
How to get and keep the cheapest car insurance in Philadelphia
Maintaining cheap car insurance rates may be just as important as finding them in the first place. Here are some ways you might find and keep cheap car insurance in Philadelphia:
- Shop around: Getting quotes from several carriers allows you to compare rates, coverage options, discounts and policy features. Taking the time to analyze the quotes from a handful of companies may help you find the most competitive price in Pennsylvania.
- Check for discounts when your policy renews: Most car insurance companies offer at least a handful of discounts to help drivers save. As your circumstances change, you may become eligible for more discounts. Reviewing the discounts your carrier offers when your policy renews may help ensure you’re taking advantage of all potential savings opportunities.
Frequently asked questions
There are a lot of variables to consider when choosing the best car insurance company. Every company uses specific rate factors to determine the cost of your car insurance, including what kind of car you drive, your location, your driving history and, in most states, your age, credit history and gender. Creating a list of car insurance companies that meet your needs and comparing quotes from each could help you find the best car insurance company for your circumstances.
Yes, it is, but no-fault coverage is often misunderstood. No-fault only refers to personal injury protection, called First Party Benefits (or FSB) in Pennsylvania. This coverage is required and means that your policy will initially pay for your medical costs, and those of your passengers, regardless of who was at fault in an accident and up to your policy limits. FSB also pays for lost wages and costs for household services you can’t perform while injured. However, you are always responsible for the property damage you cause in accidents. Additionally, you may still be liable for the bodily injury you cause, although Pennsylvania has various tort options that limit a not-at-fault drivers’ ability to sue.
In addition to your personal rating factors, your location affects your car insurance premium. Philadelphia is the most densely populated city in Pennsylvania; as a result, there might be a greater risk of car accidents and vandalism than in other cities in the state — which might be a reason for higher-than-average auto insurance rates.
Bankrate utilizes Quadrant Information Services to analyze 2022 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. Quoted rates are based on a 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:
- $100,000 bodily injury liability per person
- $300,000 bodily injury liability per accident
- $50,000 property damage liability per accident
- $100,000 uninsured motorist bodily injury per person
- $300,000 uninsured motorist bodily injury per accident
- $500 collision deductible
- $500 comprehensive deductible
To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our base profile drivers own a 2020 Toyota Camry, commute five days a week and drive 12,000 miles annually.
These are sample rates and should only be used for comparative purposes.
Our 2023 Bankrate Score considers variables our insurance editorial team determined impacts policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s product availability, financial strength ratings, online capabilities and customer and claims support accessibility. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories.
Like our previous Bankrate Scores, each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. This year, our 2023 scoring model provides a more comprehensive view, indicating when companies excel across several key areas and better highlighting where they fall short.
- Tier 1 (Cost & ratings): To determine how well auto and home insurance companies satisfy these priorities, 2023 quoted premiums from Quadrant Information Services (if available), as well as any of the latest third-party agency ratings from J.D. Power, AM Best and the NAIC, were analyzed.
- Tier 2 (Coverage & savings): We assessed companies’ coverage options and availability to help policyholders find a provider that balances cost with coverage. Additionally, we evaluated each company’s discount options listed on its website.
- Tier 3 (Support): To encompass the many ways a home insurance company can support policyholders, we analyzed avenues of customer accessibility along with community support. This analysis incorporated additional financial strength ratings from S&P and Moody’s and factored a company’s corporate sustainability efforts.