The Best Cheap Philadelphia Car Insurance Companies

The Best Cheap Philadelphia Car Insurance Companies

Find Cheap Auto Insurance Quotes in Philadelphia

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The average annual cost of minimum-coverage auto insurance in Philadelphia is $1,217, or about $101 per month.

That's $602 per year more than state average, making it the most expensive city in Pennsylvania for car insurance.

Full-coverage auto insurance costs $3,738 per year on average, or about $312 a month. Despite the high prices of insurance in the City of Brotherly Love, it's still possible to find affordable policies by comparing quotes from several insurers.

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Our sample driver's minimum coverage policy varied by as much as $900 depending on the company he chose, demonstrating the importance of comparing rates from multiple companies.


Cheapest auto insurance in Philadelphia: Erie

Erie and State Farm offer our sample driver the cheapest rates in Philadelphia, on average. Erie's policy costs $844 per year while State Farm's costs $1,127.

Former and current military members are highly encouraged to check out USAA, which has the overall cheapest annual policy at only $379, or about $32 per month.

The most inexpensive auto insurance you can buy is a minimum-coverage policy, which is the least amount of coverage you need to legally drive in the state.

The graph shows which companies are the cheapest for car insurance in Philadelphia PA

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A minimum-coverage policy will cost less upfront, but in the event you are at fault for a major accident, you may find yourself paying more in injury and property damage costs above the policy's limits.

A minimum-coverage policy protects you against the cost of damage you cause to others, but it doesn't protect the cost of damage to your own vehicle. If you drive into a tree, for example, the price of the damage will not be covered under a minimum policy.

If you're looking for more financial protection against potential liability costs, you may want to increase the limits above a minimum-coverage policy. If you want to protect against the costs of damage to your own car, you should consider a full-coverage policy.

Rank
Company
Average annual premium
1Erie$844
2State Farm$1,127
3Nationwide$1,407
4Geico$1,471
5Progressive$1,522
6Allstate$1,769
N/A*USAA$379

Most affordable full-coverage policy: State Farm

State Farm had the cheapest full-coverage insurance policy at a rate of $2,658. Erie, the second-cheapest company, is $270 more expensive than State Farm.

Eligible drivers should contact USAA, which has the cheapest coverage overall, at nearly half the rate of State Farm.

Rank
Company
Average annual rate
1State Farm$2,658
2Erie$2,928
3Nationwide$3,476
4Geico$4,591
5Allstate$5,333
6Progressive$5,801
N/A*USAA$1,379

Full-coverage insurance is more than three times as expensive as a minimum policy in Philadelphia, but it provides a different type of protection than liability insurance.

A full-coverage policy meets the minimum-coverage requirements of state law while including collision and comprehensive coverage. To summarize collision and comprehensive coverage:

  • Collision insurance: covers damage caused when you drive into another vehicle or object.
  • Comprehensive insurance: covers damage caused by something out of your control, including natural disasters, vandalism, theft and terrorism.

A good rule of thumb: Invest in a full-coverage policy if your vehicle is fewer than 10 years old or worth more than $3,000. More specifically, you should consider buying full coverage if the cost of adding it is less than the value of your vehicle minus the policy deductible.

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Cheapest full-coverage auto insurance for young drivers in Philly: Erie

Drivers under the age of 25 are seen as riskier drivers and will often pay substantially more than older drivers. For example, young drivers insured with Allstate pay an average of $11,324 more than the average 30-year-old driver for a full-coverage policy in Philly.

The most affordable insurers for young drivers seeking a full-coverage policy is Erie and State Farm, which are both under $8,000. The cheapest option, USAA, costs $2,310 but is only available to current and former military personnel.

Rank
Company
Average annual rate
1Erie$6,504
2State Farm$7,474
3Nationwide$8,571
4Geico$9,637
5Progressive$13,040
6Allstate$16,657
N/A*USAA$2,310

These costs might be outside your budget, but if you need to get your own policy, the best option is shopping around and asking about discounts. Many companies offer discounts for safe driving, being a good student or having security devices in your car. These discounts can add up to large savings.

Another option is joining your parents' policy. It will increase their annual premiums, but a combined policy costs much less than having two separate policies.

The average cost of adding an 18-year-old to a couple's car insurance policy costs about $1,510 every six months, but the average cost of an 18-year-old getting an individual policy is $3,589 per six months.

Cheapest car insurance in Philadelphia with a prior accident

Insurers will often raise your rates if you've been at fault in an accident in the past.

The insurance company that raised its annual quotes the least following an accident in Philadelphia was The cheapest option, State Farm with an average increase of $517.

If you're looking for an alternative, Erie increased its price by only $820, compared to an average increase of $1,823 across our sample insurers.

Eligible former and current military members should look into USAA. Its rates increased by $521, only $4 more than State Farm.

Depending on your insurer, your annual rate can increase by as much as $3,500 or as little as $500. These differences show how crucial it is that you compare multiple insurers and ask about how your own driver profile will affect your quote.

Rank
Company
Rates before accident
Rates after accident
Difference
1State Farm$2,658$3,175$517
2Erie$2,928$3,748$820
3Nationwide$3,476$5,417$1,941
4Geico$4,591$8,127$3,536
5Allstate$5,333$7,601$2,268
6Progressive$5,801$8,961$3,159
N/A*USAA$1,379$1,900$521

Driver history is one of the biggest factors that influences your quote. If you have a history of multiple accidents, your rates will reflect that you're a higher risk.

In addition to researching different companies and looking into discounts, you should also ask companies if they have an accident forgiveness policy. Accident forgiveness may cost extra, but it can protect you from a price hike following an accident.


Best auto insurance company in Philadelphia, by customer service

It's not enough for insurers to just have the best prices for drivers; they must also have exceptional customer service. You don't want to deal with slow response times, rude agents or limited service hours after an accident.

Nationwide and Progressive tie for having the best customer service of insurers serving Philadelphia, measured by the rate of customer complaints.

Any company with a Complaint Index less than 1.0 has customer service that is considered better than average compared to other insurers.

Rank
Insurer
Complaint Index
1 (tie)Nationwide0.36
1 (tie)Progressive0.36
3State Farm0.57
4Allstate0.69
5Erie Insurance0.79
6USAA1.09
7Geico1.21

Although Nationwide and Progressive have the best customer service in Philadelphia, their rates are higher than the state average. Erie and State Farm, which have some of the cheapest rates, are in the middle when it comes to customer service. When selecting insurers, you should balance your desire for better customer service against the cost of switching insurers.


Average cost of auto insurance, by neighborhood and ZIP code

Every neighborhood of Philly is different, with some having higher rates of crimes or accidents. This will result in insurance rates that can vary by the hundreds depending on where you live. We found that residents in the most expensive area, Tioga, can pay an annual average of $329 more on minimum auto insurance than residents of Pennsport, one of the cheapest neighborhoods.

ZIP code
Neighborhood
Average annual car insurance rate
19102Logan Circle/Center City West/Center City$1,051
19103Rittenhouse/Center City West/Center City$1,044
19104Belmont$1,142
19106Olde City/Center City East/Center City$1,025
19107Market Street Department Stores/Washington Square/Center City East/Center City$1,026
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Car insurance agents and agencies in Philadelphia

Most companies require you to purchase a policy through an agent. You may start your quote online and get a price, but ultimately it gets passed onto an agent for review. If you prefer to visit an agent to start your policy, you can find a few below.

Agent/Agency
Address
1Pa Auto Insurance Outlet4901 Frankford Ave, Philadelphia, PA 19124, United States
2Freedom Insurance Group, Inc3308 Grant Ave, Philadelphia, PA 19114, United States
3AAA South Philadelphia Car Care Insurance Travel Center1601 S Christopher Columbus Blvd, Philadelphia, PA 19148, United States
4Titan Auto Tags & Insurance533 Spring Garden St, Philadelphia, PA 19123, United States
5Nationwide Insurance: Dennis Charles O Neill850 W Allegheny Ave, Philadelphia, PA 19133, United States
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Driving in Philadelphia: Minimum car insurance coverage requirements

Minimum auto insurance coverage is determined at the state level. Pennsylvania law sets the car insurance requirements at the following limits:

Coverage
Limits
Bodily injury (BI)$15,000 per person/$30,000 per accident
Property damage (PD)$5,000 per accident
Medical payments coverage$5,000 per accident

The coverages listed above are required for every driver in Pennsylvania, but they might not be sufficient to meet your own needs. When shopping for minimum coverage, you should also ask insurance agents about additional coverages they offer. Getting into an accident can cost you hundreds of thousands of dollars if you're not sufficiently protected.

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Methodology

We collected data from seven insurance companies in Philadelphia. Our default driver was a 30-year-old single man who owns a 2015 Honda Civic EX and shopped for a minimum-coverage policy, except in instances when we state otherwise. He also has a below-average credit score or no credit history.

When analyzing full coverage, the following limits were used:

  • Bodily injury liability: $50,000 per person/$100,000 per accident
  • Property damage liability: $25,000 per accident
  • Uninsured/underinsured motorist bodily injury: $50,000 per person/$100,000 per accident
  • Comprehensive and collision: $500 deductible

ValuePenguin's analysis used insurance rate data from Quadrant Information Services. These rates were publicly sourced from insurer filings and should be used for comparative purposes only — your own quotes may be different.

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.