When it comes to car insurance, Philadelphia drivers pay an average of $3,300 a year (about $275 a month) for full coverage and $752 a year (about $63 a month) for minimal coverage, although 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 purchasing options that meet 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 price isn’t everything, though, and finding the best car insurance company for your needs is also important. To help you with this goal, we have ranked each provider with our proprietary Bankrate Score method. This system takes into account average rates, coverage options, available discounts, third-party ratings 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 higher that company ranks in individual rating categories.
Geico offers, on average, the cheapest comprehensive car insurance in Philadelphia. With an average rate nearly 60% lower than the city average, Geico could be a great choice for drivers on a budget. The company also has one of the longest lists of car insurance discounts on the market. However, Geico has a below-average JD 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 personal auto insurer in the country, by market share, so if you want to work with a well-known carrier, this might be a good option. The company offers two safe driving programs, Drive Safe & Save for adults and Steer Clear for teens, that could help lower your rates even further. State Farm does not offer gap insurance, however, 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 inexpensive coverage that also includes a number of add-on options, Erie might be a good choice. The company, which is only available in 12 states, offers many endorsements, such as pet coverage and locksmith services. Erie also has the highest official JD Power customer satisfaction score in the Mid-Atlantic region. However, JD Power gave Erie a below-average rating for digital services experience, which means it may not be the best company if you want to manage your policy online or via mobile.
Learn more: Erie Insurance Review
If you want to save time and money, Progressive might be a good choice. It offers the third cheapest average full coverage premium on our list and has powerful digital tools. A standout feature is the Name Your Price option, which lets you enter your car insurance budget and then shows you a range of options that suit you. Unfortunately, Progressive has the lowest JD Power customer satisfaction score on our list.
Learn more: Progressive Insurance Review
Westfield might not be as well-known as the other companies on our list, but it might still be worth getting a quote. Westfield sells its products through a network of local independent agents, who may know the needs of Philadelphia drivers intimately. Westfield’s digital tools lack functionality though, so it might not be the best company for those who appreciate a forward-thinking approach.
Learn more: Westfield Insurance Review
Philadelphia Insurance Requirements
Like almost all states, Pennsylvania requires all drivers to have an auto insurance policy that has at least the minimum coverage types and limits required by the state. In Pennsylvania, these minimum limits are:
- Civil liability of $15,000 in bodily injury per person
- $30,000 bodily injury liability per accident
- Civil liability of $5,000 in property damage per accident
- $5,000 Personal Injury Protection (PIP)
The PIP may be called “First Party Benefits” in Pennsylvania. Additionally, Pennsylvania auto insurance companies are required to offer coverage to uninsured and underinsured motorists, 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 auto insurance, which changes your ability to sue an at-fault driver for damages. However, in the event of an at-fault accident, you will be responsible for the property damage you cause and you may also be sued for bodily injury. Insurance experts generally recommend buying higher coverage limits if you can afford it.
You need comprehensive coverage, which adds comprehensive and collision coverage, if you plan to lease or finance your vehicle. This means you will likely pay higher premiums than if you had a minimum coverage policy, but you will have coverage for damage to your vehicle.
How to Get and Keep the Cheapest Auto Insurance in Philadelphia
When you need cheap auto insurance, finding it is the first step. After that, however, you might want to consider ways to keep your rate low going forward. Here are some ways to find and keep cheap car insurance in Philadelphia:
- Compare the prices: Getting quotes from multiple carriers lets you compare rates, coverage options, discounts, and policy features. Taking the time to analyze quotes from a handful of companies could help you find the most competitive price.
- Drive carefully: One of the biggest contributors to increased premiums is accidents and traffic tickets, which typically add extra to your policy. Adopting safe driving habits and obeying traffic laws could help you maintain a good driving record, which could lower your rates.