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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, far above the respective national averages of $1,771 and $545 per year. With high average rates, Philadelphia drivers may be interested in finding affordable coverage while still buying options that fit their needs. Bankrate can help. Our review of the largest car insurance companies by market share in the City of Brotherly Love could 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 are Geico, State Farm and Progressive.
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 in that goal, we ranked each provider with our proprietary Bankrate Score method. This system takes into account average rates, coverage options, available discounts, third-party rankings and digital accessibility tools. 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 the cheapest full coverage car insurance in Philadelphia, on average. With an average rate that is nearly 60% lower than the city’s average, Geico could be a great choice for budget drivers. The company also has one of the longest lists of car insurance discounts on the market. However, Geico does have a lower-than-average J.D. Power customer satisfaction score in the Mid-Atlantic region, which could indicate frustrations with its 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 safe driving programs, Drive Safe & Save for adults and Steer Clear for teens, that could help you lower your rates even more. 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 could 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 could be a good choice. It offers the third-cheapest average full coverage premium 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, though, Progressive has the lowest J.D. Power customer satisfaction score on our list
Learn more: Progressive Insurance review
Westfield is perhaps not as well known as the other companies on our list, but it could 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. 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
Philadelphia insurance requirements
Like nearly every state, Pennsylvania requires all drivers to have a car insurance policy that has at least the state’s minimum required coverage types and limits. In Pennsylvania, these minimum limits are:
- $15,000 bodily injury liability per person
- $30,000 bodily injury liability per accident
- $5,000 property damage liability per accident
- $5,000 personal injury protection (PIP)
PIP may be called “First Party Benefits” in Pennsylvania. Additionally, Pennsylvania car insurance companies are required to offer uninsured and underinsured motorist coverage, although these options can be declined in writing. Pennsylvania is a no-fault state and drivers will also have to select a “tort option” for their car insurance, which changes your ability to sue an at-fault driver for damages. However, in the event of an at-fault accident, you’ll be responsible for the property damage you cause and it is possible you could be sued for bodily injury costs as well. Insurance experts usually recommend that you buy higher coverage limits if you can afford them.
You need full coverage, which adds comprehensive and collision, if you plan to lease or finance your vehicle. This means you’ll likely pay higher premiums than if you had a minimum coverage policy, but you’ll have coverage for damage to your vehicle.
How to get and keep the cheapest car insurance in Philadelphia
When you need cheap car insurance, finding it is the first step. After that, though, you may want to consider ways to keep your rate low for the future. Here are some ways to both 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 could help you find the most competitive price.
- Drive safely: One of the biggest drivers of premium increases is accidents and tickets, which generally create a surcharge on your policy. Practicing safe driving habits and obeying traffic laws could help you maintain a clean driving record, which could keep your rates lower.