Shopping around for the best cheap car insurance in Philadelphia can present a challenge because it’s a bit more expensive than the rest of the country. Currently, the average driver in Philadelphia pays about $778 for minimum coverage and $3,194 for full coverage. You may find coverage less than this, but it might not be enough coverage for peace of mind.
Almost 9 million people in Pennsylvania are licensed to drive. With so many people on the road, it should come as no surprise then that in 2019 Penndot reports that there were 125,267 crashes, 76,243 injuries from car related accidents and 1,059 deaths from car related accidents.
Clearly drivers in Philadelphia don’t just need affordable car insurance–they need car insurance that will protect them financially in the event of an accident. To narrow down the best car insurance companies in Philadelphia we looked at a variety of factors, including customer satisfaction scores and the average cost for both minimum and full coverage.
Best car insurance companies in Philadelphia
We used a lot of criteria to narrow down our top five car insurance companies in Philadelphia. These included J.D. Power ratings, average prices for both minimum and full coverage and available discounts.
Here are the companies we believe represent the best car insurance in Philadelphia:
|Insurance company||J.D. Power customer satisfaction score||Average annual premium for minimum coverage||Average annual premium for full coverage|
|Erie||850 / 1,000||$521||$2,220|
|Geico||841 / 1,000||$371||$1,299|
|Progressive||828 / 1,000||$499||$1,936|
|State Farm||855 / 1,000||$503||$1,878|
|USAA||890 / 1,000||$388||$1,819|
Many drivers argue that Erie offers the best car insurance in Philadelphia. Though it’s not the cheapest on the list, Erie offers a lot of coverage options such as pet coverage and personal item coverage. With pet coverage, if your pet gets hurt while riding in your car, Erie will cover up to $500 for its medical expenses (with a total of $1,000 if multiple pets are injured). With personal item coverage, Erie will insure your personal belongings up to $350 if they are damaged or stolen from your vehicle.
Geico is one of the cheapest providers in Philadelphia. Not only does it offer great rates, but it also offers a whole host of discounts to get your premium down even further. Moreover, many of the discounts Geico offers can save you significant money. For example, you can save 25% on your policy by insuring two or more cars, and you can save up to 23% for driving a car that has air bags installed.
Progressive makes it easy to get car insurance quotes in Philadelphia. In fact, if you go to its website, it’s one of the first things you’ll see. Progressive is also one of the few companies that lets you shop around for coverage options based off of your budget. Not only will it show you the type of policy you could get with them at your price, but it will also show you the types of policies you could get with other companies. Simply put, Progressive is one of the few progressive companies out there.
State Farm scores top marks year after year for its customer service. State Farm has all of the major discounts you would expect a national carrier to have, but it also has a few more. Our favorite is the Drive Safe & Save discount. With this discount, State Farm looks at your driving habits and uses that data to help you save even more if it likes what it sees.
USAA is nationally recognized as being one of the best insurance carriers on the market. If you haven’t heard of it, there’s a good reason for that. USAA currently only serves both current and retired military as well as their family members. However, if you qualify, USAA offers exceptional customer service as well as naturally low rates. USAA even offers a few unique discounts, such as its garage discount. Should you be overseas or away from your vehicle for an extended period of time and need to store your car, USAA will give you a 60% discount on your premium.
Cheapest car insurance in Philadelphia
The cheapest car insurance in Philadelphia often just so happens to be the best, which is obviously great news.
Compared to the rest of Pennsylvania, Philadelphians pay significantly more. For minimum coverage, the average cost most drivers pay in Pennsylvania is $371 for minimum and $1,606 for full (meaning Philadelphians pay $407 more for minimum and $1,588 more for full coverage). Therefore, finding the cheapest provider is a must.
Each company below recently received standout scores with J.D. Power (the company that measures customer satisfaction). USAA came in first whereas State Farm came in second, but they all scored extremely well compared to other insurance providers on the market.
Financial strength is no different. Here’s how each company rated with AM Best:
- Geico: A++ (Best)
- USAA: A++ (Best)
- Progressive: A+ (Superior)
- State Farm: A++ (Best)
- Erie: A+ (Best)
You want your car insurance provider to be financially strong because that means they’ll be less likely to fight with you over claims because they have the ability to pay them.
Each company also has a great mobile app for filing claims, paying your bill, or checking the status of your claim. Each company has a great list of discounts you can take advantage of. In short, Geico, USAA, Progressive, State Farm, and Erie are each a great provider. They have different pricing algorithms, however, so it’s worth your time to get a quote from each before deciding which provider to go with.
|Insurance company||Average annual premium for minimum coverage||average annual premium for full coverage|
Philadelphia insurance requirements
Pennsylvania requires all drivers to have, at minimum, at 15/30/5 policy. This means that insurance carriers must provide up to:
- $15,000 for medical payments per person per accident
- $30,000 for medical payments per accident
- $5,000 for property damage
Even though Pennsylvania is a no-fault state, that does not mean you can’t be sued should any damages you cause be deemed excessive. You should strongly consider opting for a full coverage plan.
You also need full coverage if you plan to lease or finance your vehicle because the auto-dealer will require it. This means that when you’re shopping around, you can’t simply look for the lowest number for minimum coverage. You’ll have to do more digging to see who is the cheapest provider for you.
Car insurance discounts in Philadelphia
The amount you’ll save with each discount listed below varies company by company. However, each offers Philadelphia drivers significant savings well worth investigating:
- Defensive driving discount: You can often qualify for this discount by taking a course online, but if you prefer in person that can easily be done too. Philadelphia has multiple locations to choose from.
- Multiple vehicle discount: With most insurance providers, insuring multiple vehicles with a company will get you a pretty sizable discount on your premium. Falling under the ‘customer loyalty’ category, can easily be paired with other discounts to help you save even more such as using the same company for either renters, condo, or homeowners insurance.
- Pay-in-full: Many companies offer discounts up to 10% for paying your premium in full. If you opt for full coverage and have an annual premium around $2,000, that’s a savings of $200
- Anti-theft: Philadelphia drivers can make their insurance provider sleep a little easier at night by installing anti-theft devices. How much you’ll save really depends on your provider.
- Usage-based discount: Many providers are offering discounts based off of driving behavior. Therefore, the amount you might save each month varies depending on the type of driver you are. If you’re fine going the speed limit and thoroughly observing all traffic laws, this discount may save you a significant amount of money as the months and years go by.
Frequently asked questions
What is the best car insurance company?
We consider the best overall insurance company to be Amica Mutual. However, there are a lot of variables to consider when choosing among so many carriers. For more information on how we chose, as well as other top contenders in the industry, please read our Best Car Insurance Companies article.
Does Philadelphia have a lot of underinsured/ uninsured drivers?
Information for Philadelphia on its own doesn’t exist. However, at the state level, Pennsylvania is actually one of the lowest states for uninsured drivers. As of the Insurance Information Institute’s latest study, Pennsylvania only has about a 7.6% uninsured rate.
Is Pennsylvania a no-fault state?
Yes, it is. This means that each person is expected to have enough insurance to cover their own medical and property damage costs. However, people may still seek compensation via the court if the damages are excessive.
Bankrate utilizes Quadrant Information Services to analyze rates for all ZIP codes and carriers in all 50 states and Washington, D.C. 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 coverages that meet each state’s requirements. Our sample drivers own a 2018 Honda Accord, commute five days a week and drive 12,000 miles annually.
These are sample rates and should be used for comparative purposes only. Your quotes may be different.