The words “affordable” and “insurance” really don’t belong together, specifically when trying to find the cheapest coverage for drivers under 25. To help control this cost, let’s start off by going over some of the factors that have an impact on car insurance prices, and find out if you can lower the price of your next policy.
Deciding which companies quote the best car insurance rates for drivers under 25 requires a little more sweat in order to find the most economical policy. Each insurance company has a different formula to set premium rates, so we will examine the most competitive car insurance companies in Philadelphia.
It’s important that you understand Philadelphia, PA car insurance rates are impacted by many things that control the policy price. Improving your credit score, buying a different home, or getting a speeding ticket can cause premium changes that can cause some rates to be cheaper in comparison to the competition.
Find the Best Cheap Insurance for Young Drivers
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | General Casualty | $740 |
| 2 | Erie | $792 |
| 3 | USAA | $793 |
| 4 | Travelers | $811 |
| 5 | Penn National | $816 |
| 6 | Amica | $992 |
| 7 | Auto-Owners | $993 |
| 8 | Atlantic States | $1,036 |
| 9 | Donegal Mutual | $1,102 |
| 10 | GEICO | $1,145 |
| 11 | State Farm | $1,174 |
| 12 | Allied | $1,179 |
| 13 | California Casualty | $1,222 |
| 14 | State Auto | $1,241 |
| 15 | Encompass | $1,344 |
| 16 | Harleysville | $1,396 |
| 17 | Mutual Benefit Group | $1,439 |
| 18 | Progressive | $1,472 |
| 19 | Nationwide | $1,477 |
| 20 | Chubb | $1,598 |
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General Casualty has some of the lowest car insurance rates in Philadelphia at around $740 a year. Erie, USAA, Travelers, and Penn National also make the cut as some of the cheapest Philadelphia, PA car insurance companies.
As shown in the rates above, if you currently buy coverage from USAA and switched to General Casualty, you could earn an annual savings of in the neighborhood of $53. Drivers with Travelers may save as much as $71 a year, and Penn National insureds might reduce rates by $76 a year.
These rates are averaged across all drivers and vehicles in Pennsylvania and and are not calculated with an exact zip code location for drivers under 25. So the company that can offer the best rates for your situation may not even be in the top 30 companies in the list above. That illustrates why you need to get rate quotes from many companies using your own driver data and vehicle information.
For drivers age 25 and younger, one of the big criteria that are looked at to help calculate the price you pay for insurance is where your car is garaged in Philadelphia. Areas with a lot of weather claims or more people tend to have more expensive car insurance rates, whereas areas with lower vehicle theft rates and fewer weather claims have the enjoyment of a little cheaper coverage.
The information below ranks the highest-priced places in Pennsylvania for drivers under 25 to buy auto insurance in. Philadelphia comes in at #1 having an annual price of $1,977 for the average insurance policy, which is about $165 per month.
| Rank | City | Premium Per Year |
|---|---|---|
| 1 | Philadelphia | $1,977 |
| 2 | Drexel Hill | $1,549 |
| 3 | Chester | $1,421 |
| 4 | Levittown | $1,365 |
| 5 | Norristown | $1,281 |
| 6 | Erie | $1,115 |
| 7 | Allentown | $1,108 |
| 8 | Easton | $1,102 |
| 9 | Reading | $1,099 |
| 10 | Plum | $1,079 |
| 11 | Pittsburgh | $1,063 |
| 12 | Municipality of Monr | $1,059 |
| 13 | Wilkes-Barre | $1,057 |
| 14 | Hazleton | $1,056 |
| 15 | Scranton | $1,049 |
| 16 | Bethlehem | $1,045 |
| 17 | New Castle | $1,015 |
| 18 | Bethel Park | $1,009 |
| 19 | Lancaster | $1,005 |
| 20 | Altoona | $1,002 |
| 21 | Williamsport | $996 |
| 22 | Harrisburg | $985 |
| 23 | Lebanon | $960 |
| 24 | York | $916 |
| 25 | State College | $878 |
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Prices are estimated as zip code location can increase or decrease premium rates considerably.
Insuring your vehicle with a highly-rated insurance company is hard considering how many companies are available to choose from in Philadelphia. The ranking information in the next section could help you analyze which coverage providers you want to consider when buying insurance for drivers under 25.
The ratings below include the largest companies in America, so companies that have a smaller presence are not factored into this list. To check prices from the insurers below and more, click here.
Top 10 Major Auto Insurers in Philadelphia Ranked by A.M. Best Rating
- USAA – A++
- GEICO – A++
- Travelers – A++
- State Farm – A++
- Allstate – A+
- Nationwide – A+
- Esurance – A+
- Erie Insurance – A+
- Progressive – A+
- Titan Insurance – A+
Top 10 Major Auto Insurers in Philadelphia Ranked by Customer Satisfaction
- Titan Insurance – 93%
- The Hartford – 93%
- The General – 91%
- Progressive – 90%
- 21st Century – 89%
- USAA – 87%
- Erie Insurance – 87%
- State Farm – 87%
- Travelers – 87%
- Safeco Insurance – 86%
Cost difference between full coverage and liability
Paying less for car insurance is the goal of the majority of people, and an easy way to buy cheap insurance for drivers under 25 is to not buy full coverage. The information below compares insurance costs with liability coverage only compared to full coverage. The information is based on no accidents, no driving violations, $100 deductibles, single marital status, and no additional discounts are factored in.
If the expense is averaged for all age categories, comp and collision coverage costs $1,889 per year more than just insuring for liability. That is a significant amount which raises the question when is it safe to stop buying full coverage. There is no written rule that is best for determining when to drop physical damage coverage, but there is a general guideline. If the annual cost of comprehensive and collision coverage is more than about 10% of the vehicle’s replacement cost less your deductible, then it may be the right time to buy liability only.
There are some circumstances where only buying liability is not in your best interest. If you have an outstanding loan on your vehicle, you must maintain physical damage coverage in order to satisfy the requirements of the loan. Also, if you cannot afford to purchase a different vehicle in case of an accident, you should keep full coverage.
Tips for finding the cheapest auto insurance for drivers under 25
Here are many money-saving suggestions that can help you get more affordable auto insurance.
- Drive attentively and avoid accidents
- Save money by obeying traffic laws and keeping a clean driving record
- Insure your home and auto with the same company
- Pay less by remaining claim-free
- Drive a car with a high safety rating
- Compare prices as often as possible
The last item on the list is incredibly vital, as we stressed in this piece. Auto insurance rates fluctuate constantly, so you should be ready to buy a different policy if a better deal can be had. Staying with the same company for years is fine, but it’s not a good idea if that loyalty ends up costing major coinage every year. Take a few minutes and compare rates to find cheaper auto insurance for drivers under 25 in Philadelphia.