Who Has the Cheapest Car Insurance Rates in Philadelphia?

Do you currently live in Philadelphia, Pennsylvania? Or maybe you are planning to move there in the near future? Whatever your situation, it is absolutely imperative that you become familiar with the state’s driving laws. You will also need to secure auto insurance, as driving without it can result in a $300 fine and the suspension of your driver’s license, registration, and license plate for up to three months. Auto insurance rates can vary drastically from city to city, so it is worth thoroughly researching all your options. Factors that tend to impact premiums include population density, average worker commute times, and theft reports.

Typically, cities with lower population densities have cheaper insurance premiums. This varies, of course, but the cost of coverage in locations with fewer than 5,000 people per square mile does tend to be lower than in areas with more residents. Philadelphia, Pennsylvania, for example, had a population of just over 11,379 per square mile in 2010 and is known to be a city with some of the most expensive car insurance in the state.

Commute time for workers age 16 and older in the city are also likely impacting the high cost of car insurance in Philadelphia, Pennsylvania. Between the years of 2014 and 2018, the mean travel time to work was over 33 minutes. Insurance companies often keep this in mind when establishing prices, as increased travel time means more opportunities for accidents to occur. And those who live in Philadelphia commute more than five hours every week in a single-vehicle household and over 10 hours in a 2-vehicle household.

Fortunately, auto thefts in the region are relatively low considering the size of the city. The National Insurance Crime Bureau (NICB) ranked Philadelphia, Pennsylvania, #193 on their theft 2018 Hot Spots Report Map.

How Much Car Insurance Coverage Do I Need in Philadelphia

All Pennsylvania drivers are required to have at least the minimum amounts of coverage for their vehicles when it is on the road. New residents have a limited number of days to comply after establishing residency, so you need to be acutely aware of this if you have just moved or are planning to soon.

Coverage expectations include:

  • Bodily Injury Liability Coverage

    Drivers must have a minimum of $15,000 of coverage per person and $30,000 of coverage per accident.

  • Property Damage Liability Coverage

    Drivers must have a minimum of $5,000 coverage.

  • First Party Benefits

    Drivers must have a minimum of $5,000 coverage.

First Party Benefits provides a variety of medical benefits. The state also wants drivers to have Uninsured and Underinsured Motorist Coverage of $15,000 per person and $30,000 per accident. Drivers can, however, request to reject these coverages.

Most Expensive and Least Expensive Insurance Rates by Zip Code

Cheap Car Insurance in Philadelphia by Insurer

Philadelphia, Pennsylvania may have some of the highest auto insurance rates in the state, but some coverage options are cheaper than others. While individual premiums will vary, Nationwide Property and Appraisal Services LLC offers drivers some of the least expensive rates for both minimum and full coverage. GEICO and State Farm Mutual Auto Insurance Company may also provide reasonably priced solutions.

Use this guide to compare auto insurance quotes from the best companies.

Low Cost Auto Insurance for Bad Credit in Philadelphia

Insurance companies in Pennsylvania are allowed to use driver credit scores when determining individual auto insurance premiums. If you have bad credit, this does not necessarily mean you will be stuck paying more per month. It does, however, mean you should research each option carefully before finalizing your coverage. On average, GEICO tends to offer the best rates for drivers in this situation.

Learn how a bankruptcy affects your credit and auto insurance rates.

Full Coverage Vs. Liability, Which is Best For You?

Liability Only Insurance Coverage

Liability-only coverage is the cheapest option for automobile insurance. This coverage level only covers vehicles that are not at fault in an accident. Thus, if you carry liability-only coverage and cause an accident, the other driver will be covered by your policy. Any damage done to your car must be covered out of pocket, if at all.

Another way to think of liability insurance is that it protects you from claims made by another driver. Without the protection of insurance, you might be sued if you were to collide with another vehicle.

What Full Coverage Covers

Full Coverage is a commonly used term which covers more than just the damage you might cause in an accident, or the coverage you are liable for. If your policy covers your liability to another vehicle, the damage done to your vehicle (collision insurance), and any incidental damage done to your car by any non-auto elements (comprehensive coverage), then you have a policy that is indeed full coverage. If you have a new car, you may wish to cover it with such a policy, as you might want the peace of mind that any damage will be covered by insurance.

Key Differences Between Full Coverage and Liability Only

Liability coverage kicks in when you back up and hit a kid on a skateboard you did not see. It will also pay for a gate you run into and damage.

Collision insurance pays out when you back into a large rock at a campground, denting your pickup’s tailgate. It will pay to get the tailgate repaired.

Comprehensive coverage will pay for the repair costs when something flies out of the back of a semi-truck and you end up with a cracked windshield.

Average Annual Car Insurance Rates in Pennsylvania by City

Additional cities in Pennsylvania you can check out.




Ways to Lower Your Auto Insurance Rates

Save on Your Insurance Policy Rates With These Discounts in Philadelphia:

Of course, the best way to keep your auto insurance rates down is to drive safely and avoid accidents. The better your driving record, the lower your rates. However, there are also other ways to lower your rates.

Shop Around for the Best Price

Prices can vary significantly between insurance agencies so you will need to get a quote from each one. To prevent having to go to each site and put all your information in dozens of times, there are some sites where you can compare the rates of several agencies at once that you should take advantage of.

Bundle with other insurance plans

Most insurance agencies offer you a chance to bundle and get many of your insurance needs from one place; such as renters’ insurance, homeowners’ insurance, auto insurance, and more. You can also save when insuring more than one vehicle.

Reduce the Number of Miles you drive

Reducing the number of miles you drive will reduce your risk for accidents and therefore, your insurance rates. Besides that, it could do your body and your health good to walk sometimes.

Check the Insurance Costs for a Car Before Buying it

Before you buy a car, it is important that you check insurance costs first, as some car types can raise your insurance rates much more than others. Some of the things your premiums may be based on include the cars overall safety record, costs of parts and repairs, the price of the car, and theft likelihood.

Increase your Deductibles

The higher the price of the deductibles the less your rates will be. For example, if you were to increase your deductible from $200 to $500 it would reduce your comprehensive coverage and collision rates by 15-30%.

Watch your Credit Score

Did you know that many people check their credit report only to find several mistakes that can be fixed? Check your credit report often, because the higher your credit score the lower your insurance rates will be.

Use our guide to find discounts and lower your insurance premium costs.

Common Factors that Affect Your Philadelphia Vehicle Insurance Rates

Your car insurance rate in Philadelphia, PA is based upon many factors. You will be charged more or less on your policy based upon your age, marital status, and your number of moving violations and accidents. You will also be charged by the carrier based upon the type of vehicle you drive, whether it is paid for or not, and whether you decide that it is cost effective and prudent to have collision insurance or not. Also, insurance agency rates are highly variable, based upon the company and what area of the country you live in. Those in rural areas often pay less, while people in large, metropolitan cities often pay more. Armed with knowledge and by shopping around, you overcome some of these factors and save substantial money each year on auto insurance.

How to tickets and accidents affect your driving record and insurance?

Helpful Philadelphia, Pennsylvania Vehicle Resources:

Live Traffic Accidents by City

DMV (Find Locations, Vehicle Registration, Titles and Insurance Info)


Get a quote1.855.283.2631