Auto Insurance in Philadelphia

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Living and driving in Philadelphia is exciting although pretty expensive compared to other cities in Pennsylvania. While most residents own one car, the cost of parking, driving tolls, car payment, and insurance can really add up.

If you want to know more about auto insurance, Philadelphia, read on. This article will provide you with details about the affordable insurance options in this area.

Best Auto Insurance in Philadelphia:

  • Best Overall in Philadelphia: Erie
  • Cheapest Car Insurance in Philadelphia: USAA
  • Best Full Coverage Insurance: NJM Insurance Co.
  • Best for Safe Drivers: Root

Quick Facts: Auto Insurance in Philadelphia

  • Number of vehicles: Less than 1 per household, 2017 average
  • Minimum state insurance requirements
    • $15,000 Bodily Injury Liability, Individual
    • $30,000 Total amount for every person
    • $5,000 Property Damage Liability
    • $5,000 Medical Payments
  • Average annual insurance rate: For those with a clean driving record $2,300, with men having a slightly higher average rate than women.

Pennsylvania Auto Insurance Laws Explained

Pennsylvania law requires each vehicle to have insurance. If law enforcement catches you without an insurance card, you’ll have to pay a $300 fee. On top of that, your Department of Transportation will suspend your driver’s license for three months. You can provide proof of insurance to get your license back earlier.

The minimum liability coverage in the state follows the 15/30/5 rule. This means that your policy needs to have bodily injury liability of $15,000 for one person, while the total bodily injury liability has to be at least $30,000. If you destroy property, your insurer needs to be able to pay compensation of at least $5,000.

You also need to have at least $5,000 to cover medical expenses, which means that the passengers who traveled in your car have their injuries covered to this limit, regardless of who was at fault for the accident.

Philadelphia Auto Insurance Rates Per Vehicle

All the average rates are based on 30-year-old men and women who drive a 2010 Honda Accord. They also assume a clean driving record and an annual mileage of less than 10,000.

However, the rates may vary depending on the type of your vehicle, your age, credit, and other factors. When it comes to the vehicle type, the most important parameters include:

  • The cost of parts that need replacement or repair, the collision coverage rate will be higher in the case of rare parts
  • Frequency of theft for a particular car type, this impacts the comprehensive insurance rate.
  • Horsepower, increasing the liability risks
  • Safety standards

These factors mean that a newer car with easily replaceable parts and less horsepower will cost less to insure. If you have an older, bigger vehicle with a bigger liability risk and parts that are difficult to replace, your rate will be much higher.

In Philadelphia, the most popular cars are 4-door SUVs. Since family members sharing the car is the standard here, it makes sense to buy a big vehicle even if it brings the insurance rate up.

Ford and Chevrolet are easily the most popular brands not only in Philadelphia but in the whole state of Pennsylvania. As of 2015, these two brands alone made up a quarter of total registered cars in the state. Dodge is another domestic brand popular in Philly, with Honda and Toyota rounding up the top five.

Philadelphia Insurance Rates by Insurance Credit Score

Your insurance credit score is another important parameter that determines your insurance fee. Unless you’re in California, Massachusetts, or Hawaii, the insurers are able to check your credit score.

However, Pennsylvania is one of the states that prevent insurance companies to fully use your credit information. The information will be available to the insurers only if you decide to renew your insurance policy or you decide to cancel the insurance.

This table will show you the minimum coverage fees for various types of credit scorers in Philadelphia.

Credit ScoreCheapest ProviderRate For State Minimum Coverage
Poor 300-579Safe Auto $4,786
Fair 580-669GEICO$1,664
Good 670-739USAA $1,474
Excellent 740+Allstate$1,465

Philadelphia Auto Insurance for Drivers with a Clean Record

Having a clean driving record is one of the most important factors for a good insurance rate. Insurance companies will look into your previous driving history and check if you have any delinquencies.

With a clean record, you have the best chances of obtaining cheap liability insurance. This is the minimum required insurance and the bare necessity for any driver. Driving an uninsured car also counts as an infraction. If you’re caught, it will add points to your record, making it even more expensive to get insured.

In Philadelphia, minimum liability insurance includes $15,000 for injuries that you’ve caused, $30,000 per accident for you, and $5000 for car and property damage to others.

Full coverage includes additional coverages besides just liability. Comprehensive insurance will cover car theft and it will also make up for damage to your vehicle from environmental accidents or acts of vandalism.

The following table will show you some of the best minimum insurance rates for drivers with a clean record.

Insurance AgencyState Minimum InsuranceStandard CoverageFull Coverage
Erie$1417$1,542$1,921
State Farm$1,346$1,545$1,863
NJM Insurance Co.$1373$1,409$1,757
The Hartford$1,798$1,943$2,100
Nationwide$1,593$1,760$2,136

Philadelphia Auto Insurance Rates With Driving Infractions

Driving infractions will greatly influence your insurance rates.

If you’ve committed a violation while driving, there is a risk that you’ll do it again. When insurers regard you as an unreliable driver, you may have trouble getting an affordable premium, or even receiving insurance in general.

If you are already insured, these offenses will increase your annual insurance rate. With a minor offense like speeding or making an illegal pass, the annual increase in the rate is around $184. But in the case of serious infractions, such as driving under the influence or street racing, the annual insurance rate can increase by up to $1600 a year.

If you had any driving infractions before you got your insurance, the starting rates will be much higher. In the table below, you can see how these offenses can influence your insurance rate.

Insurance Agency At Fault Accident Speed Violation DUI
USAA $1,992$1,612$2,126
GEICO$2,653$2,653$2,569
Nationwide$2,703$2,707$3,769
State Farm$2,976$2,744$2,900
Allstate$4,497$3,813$3,813

Best Auto Insurance Providers in Philadelphia

The information from the tables in previous sections helped us determine some of the best insurance companies in Philly.

compare quotes securely through Erie Insurance’s website
Get Custom Quotes securely through USAA’s website
SR-22 Insurance
Yes
N/A
1 Minute Review

USAA provides insurance, banking, and financial services to U.S. armed forces members, veterans, and qualified family members. Consistently ranked among top insurers for customer satisfaction, this insurer seeks to provide quality coverage at affordable pricing.

USAA offers home, auto and life insurance to members of the armed forces, veterans and their family members. USAA also returned very low coverage rates in our search, and you can save even more when you combine policies.

USAA also consistently maintains strong financial standing and scores highly in J.D. Power’s Auto Insurance Satisfaction Survey. Be sure to get a quote from USAA if you qualify for coverage.

Best For
  • Active military members
  • Veterans
  • Spouses and children of USAA members
Pros
  • Complete line of insurance, banking, and investment services
  • Easy online forms to quote and bind policies
  • Top-rated customer satisfaction
Cons
  • Very few physical locations
  • Only available to select groups, generally tied to military service and the relatives of members
get started securely through Root Insurance’s website
SR-22 Insurance
No
N/A
1 Minute Review

Root’s “user-based insurance” model claims to reward drivers who stay safe on the road and practice good driving habits — and you can save 52% when you switch. However, what defines a “good” driver isn’t clear from Root’s website, and Root reserves the right to drop you from your policy if you get involved in a “series of accidents.” Root is best for infrequent drivers and drivers with a totally clean record.

Best For
  • Infrequent drivers
  • Drivers without accidents on their record
  • Drivers who don’t travel long distances
Pros
  • Many coverage types available
  • Comprehensive mobile app
  • Free roadside assistance included with every policy
  • User-based insurance model means safe and infrequent drivers save more.
Cons
  • Opaque customer service hours
  • No clearly defined discounts
  • Must complete a “test drive,” which lasts up to a month before you get a quote
  • No policies available for “high-risk” drivers
  • Not available in all states
compare quotes securely through NJM Insurance’s website

Choosing the Right Insurance in Philadelphia

When getting insurance in Philadelphia, don’t opt for minimum insurance if you can avoid it.

With minimum coverage, if you cause a car accident, you will need to cover the damage yourself, except for the $5,000 medical coverage.

It is usually best to get at least $100,000 individual bodily injury liability, $300,000 total bodily injury liability, and $100,000 for property damage. This way, you will be covered for almost any type of damage or injury.

However, you can always increase your liability coverage to the next level.Make sure to always drive safely and avoid any infractions. A clean record and a good insurance credit score can drastically decrease your rates if you’re looking for full coverage. Companies such as Erie and USAA offer great deals, so make sure to get a quote and check all these offers yourself.

To find more ways to save on your insurance, check out our guides on how to lower your auto insurance premium and to the best cheap car insurance.

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