Best Cheap Auto Insurance in Philadelphia, Pennsylvania (2023)

It’s illegal to drive without car insurance in Philadelphia.^[1] But that doesn’t mean it’s easy to find the best car insurance policy for your needs.

The best car insurance  in Philadelphia offers a combination of affordable price points, robust coverage options, top-notch customer service, and more. As the driver, you should decide what factors are most important to you while shopping around.

Philadelphia drivers can use the city’s average auto insurance cost of $288 a month as a reference point when comparing quotes.

Best car insurance companies in Philadelphia

The best car insurance in Philadelphia varies based on your individual situation and needs. The breakdown below can help you in your search.

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Best car insurance overall: Erie

Erie earned a 4.4/5 IQ Score and the highest marks for overall customer satisfaction in the mid-Atlantic segment of the J.D. Power 2022 U.S. Auto Insurance Study.^[2] When combined with relatively low rates, Erie Insurance snagged the top spot on this list.

The longstanding company has built a positive reputation among customers. But you won’t find astronomical rates paired with this positive experience. On average, Erie provides average quotes of $153 per month for liability-only insurance coverage.

Best cheap car insurance in Philadelphia: Travelers

Travelers offers Philadelphia drivers a balance between lower-than-average price points and top-notch customer service. The company earned a 4.3 IQ Score and second place in the mid-Atlantic segment of the J.D. Power 2022 U.S. Auto Insurance Study.^[2]

The average cost of a Travelers liability-only policy is unavailable, but its average monthly cost of a full-coverage policy is $184 per month, which is still less than the average car insurance cost for the city.

Most affordable car insurance in Philadelphia: State Farm

On average, State Farm offers the cheapest monthly quotes for car insurance in Philadelphia. The average monthly rate is $132 for a liability-only policy.

You won’t just find cheap coverage — the insurer also boasts an above-average score in the mid-Atlantic segment of the J.D. Power 2022 U.S. Auto Insurance Study and a 4.4 IQ Score.^[2]

Best car insurance for commuters in Philadelphia: Liberty Mutual

As a commuter, you likely spend a lot of time on the road. Even if you’re a safety-focused driver, accidents can happen. With Liberty Mutual, you have the option to build accident forgiveness into your policy. This protection means you won’t see your premium increase after one accident.

However, Liberty Mutual has higher average rates for insurance than its competitors, at $314 a month for full coverage and $206 a month for liability only.

Best car insurance for families in Philadelphia: Progressive

As one of the largest insurance companies in the nation, Progressive offers various coverage options. Most families will find the level of coverage they’re looking for. Families with multiple cars might be especially impressed by the multi-car discount, which leads to an average savings of 12%.

Progressive’s average liability-only insurance rates are much higher than its competitors but still below the city’s average, at $206 a month. You may still find agreeable rates, depending on your family’s driving history and coverage options.

Best car insurance for college students in Philadelphia: GEICO

GEICO offers a mix of affordable rates and attractive discounts for college students. The company has earned a 4.3 IQ Score. On average, Philadelphia drivers pay $205 per month for a liability-only policy through GEICO.

As a college student at many of the universities in Philadelphia, you have an opportunity to save up to 15% on your car insurance costs with GEICO if you maintain average grades of B or better. Furthermore, you may get an additional discount if you’re a member of a sorority, fraternity, or honor society.

Best car insurance for high-risk drivers in Philadelphia: Allstate

Drivers with mistakes on their driving record may find reprieve through Allstate. Even drivers with a speeding ticket or at-fault accident will find rates below the city’s average cost. However, drivers with a DUI may pay more than $400 per month on average for car insurance through Allstate.

The company’s IQ Score of 4.1 and willingness to provide reasonable rates to high-risk drivers might make it the right fit for your situation.

Best car insurance for luxury car owners in Philadelphia: Farmers

Farmers earned a relatively low rank in the mid-Atlantic segment of the J.D Power 2022 U.S. Auto Insurance Study.^[2] But a long list of discounts and a highly rated mobile app make it an easy option for your luxury car insurance needs. Plus, its guaranteed value coverage will pay out an agreed-upon price if Farmers declares your car a total loss, and its new car-replacement coverage will replace your vehicle in the first two years if it has fewer than 24,000 miles on it.

In addition, Farmers earned an above-average score in the J.D. Power 2022 U.S. Auto Claims Satisfaction Study.^[3] If you need to file a claim on your luxury vehicle, you want to work with a company known for delivering on its promises.

How Insurify rates car insurance companies

Data scientists at Insurify analyzed more than 40 million real-time auto insurance rates from our partner providers across the United States to compile the car insurance quotes, statistics, and data visualizations displayed on this page.

The car insurance data includes coverage analysis and details on drivers’ vehicles, driving records, and demographic information. Quotes for Allstate, Farmers, GEICO, State Farm, and USAA are estimates based on Quadrant Information Services’ database of auto insurance rates.

With these insights, Insurify is able to offer drivers insight into how companies price their car insurance premiums. The data included on this page represent averages across driver ages, genders, credit scores, and driver profiles for Pennsylvania drivers.

How to shop for the best car insurance in Philadelphia

As a driver in Philadelphia, you have access to various reputable insurance companies. But the right car insurance choice will vary based on your unique needs.

When looking around, focus on what considerations matter most to you. A few things to keep in mind include:

• Company’s reputation

• Policy and coverage options

• Average premiums

• Customer ratings

• Financial stability

As you shop, see how a potential insurer stacks up on your list. 

How to get the cheapest car insurance in Philadelphia

Cheap car insurance may be a priority for many drivers. If you’re looking for affordable car insurance, consider the following tips:

• Shop around. Every insurance company has a slightly different method of determining rates, and shopping around can help you find the most affordable rate. Take a few minutes to get multiple quotes before choosing a policy.

• Control what you can. While some factors insurers consider are out of your control — like your age and gender — you can control others. Take time to improve your credit score, make sure you drive safely, and even revisit your coverage options and policy limits to reduce rates where you can.

• Ask for a discount. Many insurers offer discounts to customers. For example, you might get a discount for being a safe driver or a good student. Don’t hesitate to ask about any discounts you might qualify for.

Learn More: Why is My Car Insurance So High?

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Liability-only vs. full-coverage insurance in Philadelphia

It’s illegal to drive without a minimum amount of liability coverage anywhere in Pennsylvania.^[1] As a driver, minimum liability auto insurance helps pay for damages and injuries you cause to another driver during an accident. 

The limits for liability car insurance in Pennsylvania are as follows:

• $15,000 per person for bodily injury liability

• $30,000 per accident for bodily injury liability

• $5,000 per accident for property damage liability

Since a liability-only policy won’t pay for you to repair or replace your vehicle after an accident, this kind of policy isn’t right for everyone.^[4] Drivers who can comfortably afford to repair or replace their vehicle might opt for liability-only insurance.

However, you may want a higher level of protection, which a full-coverage insurance policy provides. A full-coverage policy includes both collision and comprehensive coverage. After an accident or other incident, collision and comprehensive coverage will help you pay to repair or replace your vehicle.^[4]

Here’s a look at the cheapest auto insurance in Philadelphia by policy type. Some companies have significantly higher average auto insurance rates. For example, the average monthly cost of car insurance for a liability-only policy is $132, but the same type of policy costs an average of $445 with CSAA.

Philadelphia car insurance rates by driving and accident history

A clean driving record tends to result in lower car insurance costs.^[5] But if you have any speeding tickets, at-fault accidents, or driving under the influence convictions, your car insurance rates will likely increase.^[6]

Insurance companies tend to reward drivers with clean drivers with lower rates. After all, a clean driving record might indicate a lower chance of a future accident, which means potentially fewer costs for the insurance company.

A DUI on your record will raise your rates by an average of 100% in Philadelphia, while an at-fault accident or speeding ticket will increase your costs by 43% and 33%, respectively. Here’s a look at average monthly quotes for the cheapest car insurance in Philadelphia based on driving and accident history.

Philadelphia car insurance rates by credit tier

Insurance companies can use your credit history when determining insurance premiums. The practice is allowed in the state of Pennsylvania.^[7]

With that, your credit score can have a big impact on your insurance costs. In general, drivers with excellent or good credit scores tend to have lower insurance premiums than drivers with poor credit scores.^[5]

Philadelphia car insurance rates by driver age

With age comes more experience in the driver’s seat. Insurance companies tend to view teens and drivers younger than 25 as higher risk than older drivers. However, rates can drop as you age, if you keep a clean driving record.^[5]

In Philadelphia, young drivers find higher insurance rates than older drivers. Teenage drivers in the city pay an average of $504 per month for car insurance. In contrast, drivers in their 70s enjoy the lowest rates at an average of $191 per month.

Below, you’ll find a breakdown of average rates by age group.

Is car insurance more expensive in Philadelphia?

Drivers in Pennsylvania tend to experience the most expensive car insurance in Philadelphia. Other cities, like Scranton and Lancaster, come with 40% lower car insurance rates than Philadelphia.

Within the state, Philadelphia drivers might find higher rates due to the cost of living in a metropolitan area. For example, a larger number of commuters on the road and higher crime rates than smaller cities may be part of the reason for higher rates in Philly.^[5]

“Rates within Philadelphia are impacted by the ZIP code where the vehicle is parked overnight,” says Jesse Cunningham, licensed insurance agent and owner of insurance platform Bauple. “This ties into accident and traffic data for the area, as well as crime rates for the specific area of the city. Insurance companies will consider how many cars are stolen or vandalized in an area. Lots of this data comes from claims filed by policyholders in the area.”

When compared to other major cities around the country, Philadelphia drivers face relatively average rates. For example, drivers in Chicago tend to pay around 35% less than Philadelphia drivers, while drivers in Tampa tend to pay 100% more for premiums. 

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