Finding budget insurance is not always easy, and finding out which companies offer the lowest-priced insurance rates for a school permit calls for even more rate comparisons. Each auto insurance company has their own unique process for determining prices, so first we will examine the insurance companies with the overall best prices in Philadelphia, PA.
It’s important to understand that Philadelphia, PA insurance rates are calculated based on many things which can substantially change the price you have to pay. Improving your credit score, getting married, or getting a few speeding tickets may cause policy rate changes that can make some companies more expensive than before.
Cheapest Insurance Rates for Students
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| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | General Casualty | $718 |
| 2 | USAA | $785 |
| 3 | Travelers | $803 |
| 4 | Erie | $816 |
| 5 | Penn National | $832 |
| 6 | Amica | $992 |
| 7 | Auto-Owners | $1,003 |
| 8 | Atlantic States | $1,005 |
| 9 | Donegal Mutual | $1,069 |
| 10 | Allied | $1,144 |
| 11 | GEICO | $1,157 |
| 12 | State Farm | $1,162 |
| 13 | California Casualty | $1,186 |
| 14 | State Auto | $1,279 |
| 15 | Encompass | $1,385 |
| 16 | Harleysville | $1,396 |
| 17 | Mutual Benefit Group | $1,411 |
| 18 | Progressive | $1,429 |
| 19 | Nationwide | $1,491 |
| 20 | Chubb | $1,551 |
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General Casualty generally has some of the best car insurance rates in Philadelphia at around $718 annually. USAA, Travelers, Erie, and Penn National would also be considered some of the lowest-priced Philadelphia, PA auto insurance companies.
As the example above demonstrates, if you currently have coverage with Erie and switched to USAA, you may realize yearly savings of around $31. Customers with Penn National may save as much as $47 a year, and Amica customers might reduce prices by as much as $207 a year.
To compare your rates to other Pennsylvania insurance companies, click here to start your free quote or quote prices from the following companies.
Understand that those premium estimates are averages across all drivers and vehicles and and are not figured with a specific location for a school permit. So the company that is most affordable for your situation may not even be in the top 30 companies shown above. That point stresses why you need to quote rates from as many companies as possible using your own driver information and specific vehicle type.
The vehicle requiring insurance is a significant factor when looking for cheaper auto insurance for a school permit. Vehicles with lower acceleration and performance, good crash test ratings, or a low likelihood of having liability claims will cost significantly less to insure than fast, unsafe models. The next list illustrates car insurance prices for some of the most economical automobiles to insure.
| Vehicle | Estimated Cost for Full Coverage |
|---|---|
| Honda Accord EX 4-Dr Sedan | $17,431 |
| Honda CR-V LX 4WD | $17,440 |
| Ford Escape XLT 4WD | $17,613 |
| Volkswagen Jetta S 2.5 Station Wagon | $18,757 |
| Hyundai Elantra SE Touring Station Wagon | $18,762 |
| Toyota Prius | $18,939 |
| Honda Odyssey LX | $19,366 |
| Jeep Wrangler Sahara 4WD 2-Dr | $19,549 |
| Ford Explorer XLT AWD | $19,555 |
| Ford Edge SE AWD | $20,509 |
| Chevrolet Impala LS | $20,518 |
| Toyota Tacoma 2WD | $20,509 |
| Chevrolet Equinox LT 2WD | $20,692 |
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Table data assumes single male driver age 17, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Pennsylvania minimum liability limits. Discounts applied include safe-driver, and claim-free. Rate quotes do not factor in vehicle location which can decrease or increase premium rates substantially.
Looking at the data, you can infer that models like the Honda Accord, Honda CR-V, and Ford Escape are most likely going to be the most affordable vehicles to insure for a learners permit. Prices will trend higher just due to the fact that there is more exposure for a school permit, but overall those specific models will most likely have the least expensive rates that you are likely to find.
For a learners permit, one of the big factors that are looked at to help calculate car insurance rates is where you call home. More densely populated places tend to pay slightly more, whereas areas that tend to be more rural have the gratification of cheaper auto insurance rates.
The illustration below lists the most expensive places in Pennsylvania for a school permit to purchase a policy in. Philadelphia makes the list at #1 with an annual rate of $2,037 for coverage, which is around $170 per month.
| Rank | City | Annual Premium |
|---|---|---|
| 1 | Philadelphia | $2,037 |
| 2 | Drexel Hill | $1,489 |
| 3 | Chester | $1,421 |
| 4 | Levittown | $1,379 |
| 5 | Norristown | $1,268 |
| 6 | Erie | $1,115 |
| 7 | Allentown | $1,108 |
| 8 | Easton | $1,102 |
| 9 | Reading | $1,099 |
| 10 | Hazleton | $1,088 |
| 11 | Municipality of Monr | $1,081 |
| 12 | Bethlehem | $1,077 |
| 13 | Scranton | $1,071 |
| 14 | Pittsburgh | $1,063 |
| 15 | Wilkes-Barre | $1,047 |
| 16 | Plum | $1,047 |
| 17 | Harrisburg | $1,015 |
| 18 | New Castle | $1,015 |
| 19 | Lancaster | $1,005 |
| 20 | Altoona | $1,002 |
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Premium costs are approximated as the specific geographic location can decrease or increase rates greatly.
The diagram below illustrates how your deductible choice can affect annual premium costs when searching for cheap insurance for a school permit. The premium estimates are based on a married male driver, full physical damage coverage, and no discounts are applied.
A 40-year-old driver could pocket $230 a year by switching from a $100 deductible to a $500 deductible, or save $346 by using a $1,000 deductible. Youthful drivers, like the Age 20 category, could reduce their rates as much as $762 each year by selecting a higher deductible.
When increasing deductibles, it is a good idea to have enough savings to allow you to cover the extra out-of-pocket expense that comes with higher deductibles.
Cost of full coverage
Lowering the price of insurance is important to the majority of drivers, and one of the fastest ways to reduce the cost of insurance for a school permit is to buy only liability coverage. The diagram below shows the comparison of insurance premiums with and without physical damage coverage. The rates are based on no violations or accidents, $100 deductibles, single status, and no discounts are factored in.
If the expense is averaged for all age categories, full coverage costs $1,889 per year more than carrying just liability coverage. At some point, about every driver wonders when is it a good idea to stop buying full coverage. There is no clear-cut formula for eliminating comprehensive and collision coverage on your policy, but there is a general guideline you can use. If the yearly cost of comp and collision coverage is more than around 10% of replacement cost minus your deductible, then you might want to consider buying only liability coverage.
For example, let’s assume your vehicle’s claim settlement value is $10,000 and you have $1,000 physical damage deductibles. If your vehicle is damaged in an accident, the most you would get paid by your company is $9,000 after paying the physical damage deductible. If you are paying in excess of $900 a year to have full coverage, then it may be the right time to buy liability only.
There are some conditions where dropping full coverage is not advised. If you still owe money on your vehicle, you have to keep full coverage to satisfy the loan requirements. Also, if your finances do not allow you to purchase a different vehicle in case of an accident, you should not eliminate full coverage.
Why you should be shopping around
Philadelphia, PA insurance rates are influenced by many factors that may substantially change the price you have to pay. Simply having another birthday, getting divorced, or getting a driving violation may cause policy rate changes resulting in some rates now being more affordable than competitors. Not only that, but insurance companies amend premium rates at least once a year to adjust for gains or losses. A period of increased losses may cause a rate increase, while lower claim expenses may produce cheaper Philadelphia car insurance rates.
To help illustrate this point, the chart below demonstrates which company has the cheapest car insurance in Philadelphia, PA for a 45-year-old female driver with no accidents or violations, and good financial standing. When quoting prices based on her current risk profile, General Casualty might quote the cheapest car insurance rates in Philadelphia at $1,752 each year. This is $95 more than the average rate paid by Pennsylvania drivers of $1,657. Travelers, USAA, Penn National, and Erie are the rest of the cheapest Philadelphia, PA auto insurance companies.
Now we will give the driver from the first set of rates a couple of claims, a lower credit rating, and a speeding citation. Since each auto insurer has a unique formula to set their prices, comparing prices most likely will result in a substantially altered list of affordable Philadelphia car insurance companies as shown below.
Atlantic States now has the lowest car insurance rate in Philadelphia, PA with Amica, Donegal Mutual, USAA, and GEICO completing the list. This example illustrates why it is so important to compare lots of rates to find affordable car insurance rates for a school permit.
Rates are made up of many factors and can change substantially, so the most affordable company the last time you shopped around may now be one of the more expensive options.
How to find budget-friendly auto insurance for a school permit
It is possible to find better rates, and here are many money-saving solutions that can help drivers quote lower-cost car insurance.
- Avoid filing excessive claims
- Keep your driving record clean
- Drop full coverage on older vehicles
- Raise comprehensive and collision coverage deductibles
- Avoid accidents and claims
- Look for cheaper rates once a year by shopping around
The last tip is especially necessary, as we noted in the prior information. Auto insurance prices adjust often, so don’t be unwilling to change to a new company if you can save money.
Being loyal to a particular company is commendable, but it isn’t a good idea if that loyalty results in overpaying a small fortune. Take a few minutes and compare prices and find cheaper auto insurance for a school permit in Philadelphia.