You have probably watched the ads from companies like The General, Farmers, and Progressive that promise the cheapest price, so you should just pick the company with the best ad, right?
It’s just not that easy, however, as there are many unknown elements such as when you were born, what coverage limits you need, your annual mileage driven, and whether you are male or female, that all factor into the price you pay. We will try to teach you about some of these topics and hopefully give you enough understanding to have a jump start in finding the best auto insurance in Pennsylvania.
Deciding which insurers offer the cheapest insurance rates for 16 year olds may require a bit more effort in order to find coverage that fits your budget. Each company has their own formula to set their prices, so let’s take a look at the most budget-friendly insurance companies in Pennsylvania.
It’s important to know that Philadelphia insurance rates are determined by lots of factors which can substantially change your annual premium. Improving your credit rating, buying another vehicle, or getting a DUI may generate price changes that can now make some companies affordable when they were higher priced.
Best Insurance Companies for Teens
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | General Casualty | $748 |
| 2 | Erie | $792 |
| 3 | Travelers | $803 |
| 4 | Penn National | $816 |
| 5 | USAA | $817 |
| 6 | Auto-Owners | $973 |
| 7 | Amica | $1,022 |
| 8 | Atlantic States | $1,047 |
| 9 | Donegal Mutual | $1,102 |
| 10 | GEICO | $1,123 |
| 11 | Allied | $1,144 |
| 12 | State Farm | $1,210 |
| 13 | State Auto | $1,229 |
| 14 | California Casualty | $1,234 |
| 15 | Encompass | $1,357 |
| 16 | Mutual Benefit Group | $1,411 |
| 17 | Harleysville | $1,452 |
| 18 | Progressive | $1,457 |
| 19 | Nationwide | $1,477 |
| 20 | Chubb | $1,598 |
| Get a Custom Quote Go | ||
General Casualty has some of the lowest car insurance rates in Philadelphia at around $748 each year. Erie, Travelers, Penn National, and USAA are also some of the best Philadelphia, PA auto insurance companies.
As shown in the table above, if you are a policyholder with Erie and switched to General Casualty, you may see annual savings of around $44. Policyholders with Travelers might save as much as $55 a year, and Penn National insureds might cut rates by $68 a year.
It’s important to note that these estimates are averages for all types of insureds and vehicles and and are not calculated with a specific vehicle garaging location for 16 year olds. So the insurer that is best for you may not even be in the top 30 companies shown above. That illustrates why you need to compare rates from multiple companies using your own personalized driver profile and vehicle information.
The make and model of vehicle needing coverage is a significant factor when comparing the most affordable auto insurance for 16 year olds. Vehicles with higher performance characteristics, a lack of safety features, or high incidents of liability claims will cost more to insure than safer models. The table below estimates coverage prices for a number of the cheaper vehicles to buy insurance for.
| Vehicle Make and Model | Estimated Cost for Full Coverage |
|---|---|
| Honda CR-V EX 2WD | $16,985 |
| Hyundai Elantra SE Touring Station Wagon | $18,186 |
| Ford Escape Limited 4WD | $18,193 |
| Toyota Prius | $18,349 |
| Ford Explorer XLT 4WD | $19,095 |
| Ford F-150 XLT Regular Cab 4WD | $19,101 |
| Dodge Grand Caravan CV | $19,095 |
| Ford Edge SEL AWD | $19,977 |
| Chevrolet Impala LS | $19,983 |
| Chevrolet Malibu LS | $20,136 |
| Volkswagen Jetta LE 4-Dr Sedan | $20,144 |
| Chevrolet Equinox LT 2WD | $20,136 |
| Toyota RAV4 4WD | $20,144 |
| Toyota Tacoma Double Cab 4WD | $20,300 |
| Chevrolet Silverado LS Regular Cab 2WD | $20,635 |
| Toyota Corolla XLE | $21,173 |
| Toyota Camry SE | $21,182 |
| Honda Odyssey EX-L W/Rear Entertainment | $21,173 |
| Nissan Altima 2.5 S 4-Dr Sedan | $21,181 |
| Jeep Wrangler Unlimited Sport 4WD 4-Dr | $21,315 |
| Get a Custom Quote Go | |
Data rating is based on single male driver age 16, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Pennsylvania minimum liability limits. Discounts applied include safe-driver, and claim-free. Table data does not factor in specific zip code location which can impact price quotes considerably.
By looking at the data, we can expect models like the Honda CR-V, Hyundai Elantra, and Ford Escape are a few of the most affordable vehicles to insure for new drivers. The price for an auto insurance policy will trend higher because of the fact that there is more liability risk for 16 year olds, but overall those specific models will tend to have the lowest insurance prices compared to all other vehicles.
The example below shows how different deductible levels can increase or decrease yearly insurance costs when getting quotes for cheap insurance for 16 year olds. The prices are based on a married female driver, comprehensive and collision coverage, and no discounts are applied to the premium.
A 40-year-old driver could cut expenses by $226 a year by switching their comprehensive and collision coverages from a $100 deductible up to a $500 deductible, or save $340 by switching to a $1,000 deductible. Youthful drivers, like the Age 20 category, have the ability to save up to $558 each year by selecting a higher deductible.
When raising deductibles, it is a good idea to have enough spare savings to be able to cover the extra out-of-pocket expense, which is the main drawback of higher deductibles.
How to get discounts on Philadelphia insurance rates
Insurers that provide policies for 16 year olds may additionally offer discounts that can lower rates by 25% or more if you meet eligibility requirements. Popular insurance companies and some of the discounts are shown below.
- Progressive has savings for continuous coverage, multi-vehicle, homeowner, good student, online quote discount, and multi-policy.
- Farmers Insurance has discounts for early shopping, youthful driver, electronic funds transfer, pay in full, good student, distant student, and teen driver.
- Farm Bureau offers premium reductions for safe driver, good student, multi-vehicle, renewal discount, driver training, youthful driver, and 55 and retired.
- State Farm offers discounts including good student, good driver, safe vehicle, passive restraint, student away at school, multiple policy, and Steer Clear safe driver discount.
- GEICO includes discounts for military active duty, membership and employees, five-year accident-free, air bags, multi-policy, daytime running lights, and federal employee.
- SAFECO offers discounts for teen safety rewards, multi-car, bundle discounts, anti-lock brakes, safe driver, and homeowner.
- Liberty Mutual discounts include newly married, preferred payment discount, multi-policy, new move discount, new graduate, and teen driver discount.
The chart below visualizes the comparison of insurance costs with and without some available policy discounts. The information is based on a female driver, no accidents or driving violations, Pennsylvania state minimum liability limits, comprehensive and collision coverage, and $250 deductibles. The first bar for each age group shows premium with no discounts. The second bar shows the rates with paperless filing, paid-in-full, good student, continuous coverage, vehicle safety, and passive restraint discounts applied. With discounts applied, theaverage yearly reduction on insurance for 16 year olds is 28% or $585.
How to find low-cost insurance for 16 year olds
The list below shows a few money-saving ideas that can help Philadelphia drivers get more affordable car insurance.
- Pay lower rates with good credit
- Keep your driving record clean
- Prevent price hikes by avoiding at-fault accidents
- Higher deductibles mean lower rates
- Older vehicles may not need full coverage
- Buy a vehicle with excellent safety ratings
- Compare rates once a year for cheaper prices
That last tip is particularly crucial, as we emphasized in this article. Rates in Philadelphia change a lot, so drivers shouldn’t be resistant to buy a policy from a new company if a better deal can be had. Having a favorite company is fine, but it’s not a great idea if it’s costing you money that could be used for better things. If you have a few minutes, now is a great time to compare prices to find cheaper car insurance for 16 year olds.
If you aren’t sure which coverage to buy and prefer to get some professional advice when shopping for the best coverage for 16 year olds, the agencies below can probably provide answers to your questions and help you determine which insurance coverage you need.
To locate a Philadelphia auto insurance agent near you, click the link after the list or click here to get price quotes now.
Nigro Insurance Agency
35 Letitia St – Philadelphia, PA 19106 – (215) 278-9633
The Perzel Agency, Inc.
7338 Frankford Ave – Philadelphia, PA 19136 – (215) 335-6878
Jeff Gottesman – State Farm Insurance Agent
9551 Bustleton Ave – Philadelphia, PA 19115 – (215) 725-1000
Kevin Lowber – State Farm Insurance Agent
1347 E Hunting Park Ave – Philadelphia, PA 19124 – (215) 533-9010