The words “bargain” and “insurance” really shouldn’t be used together, especially when comparison shopping for the cheapest car insurance for a learners permit. Because it’s so expensive, let’s introduce you to some of the things that have an effect on insurance prices, and figure out some ideas to reduce the price of the next policy you buy.
Deciding which company offers the lowest-priced car insurance rates for a learners permit takes a little more work than just picking a company at random. Each company uses different criteria to set premium rates, so we’ll take a look at the lowest cost car insurance companies in Philadelphia.
It’s a good idea to know that Philadelphia car insurance rates are influenced by many factors which can substantially change the policy premium. Simply turning a year older, having a teen driver, or having an at-fault accident may cause policy rate changes resulting in some companies being affordable when they were higher priced.
Find the Cheapest Car Insurance in Pennsylvania
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | General Casualty | $740 |
| 2 | Travelers | $779 |
| 3 | USAA | $793 |
| 4 | Erie | $824 |
| 5 | Penn National | $840 |
| 6 | Auto-Owners | $973 |
| 7 | Amica | $1,022 |
| 8 | Atlantic States | $1,036 |
| 9 | Donegal Mutual | $1,058 |
| 10 | GEICO | $1,123 |
| 11 | State Farm | $1,162 |
| 12 | Allied | $1,179 |
| 13 | California Casualty | $1,222 |
| 14 | State Auto | $1,267 |
| 15 | Encompass | $1,385 |
| 16 | Harleysville | $1,396 |
| 17 | Progressive | $1,414 |
| 18 | Mutual Benefit Group | $1,454 |
| 19 | Nationwide | $1,491 |
| 20 | Chubb | $1,551 |
| Compare Rates Now Go | ||
General Casualty has some of the cheapest car insurance rates in Philadelphia at around $740 a year. Travelers, USAA, Erie, and Penn National are also some of the more affordable Philadelphia, PA auto insurance companies.
As depicted above, if you currently buy coverage from Erie and switched to Travelers, you might achieve an annual savings of around $45. Policyholders with Penn National could save as much as $61 a year, and Auto-Owners policyholders might lower prices by up to $194 a year.
To find out how much you can save, click here or quote prices from the following companies.
These premiums are averaged across all types of drivers and the different vehicles they drive and are not factoring in an exact vehicle garaging location for a learners permit. So the car insurance company that can offer you the best price may not even be in the list above. That point stresses why you need to get rate quotes using your own driver data and vehicle information.
The vehicle you are trying to insure is one of the primary factors when consumers are trying to find low-cost coverage for a learners permit. Vehicles with limited speed and performance, an excellent safety record, or a track record of few liability claims will cost much less to insure than high performance models.
The next table shows insurance premiums for a selection of the most cost-effective automobiles to buy coverage for.
| Vehicle Make and Model | Estimated Cost for Full Coverage |
|---|---|
| Hyundai Elantra GLS Touring Station Wagon | $18,041 |
| Honda CR-V LX 4WD | $18,050 |
| Ford Escape Limited 4WD | $19,319 |
| Honda Accord EX-L 4-Dr Sedan | $19,324 |
| Toyota Prius | $19,492 |
| Ford F-150 XL Crew Cab 2WD | $20,293 |
| Ford Explorer Eddie Bauer 2WD | $20,302 |
| Dodge Grand Caravan Hero | $21,398 |
| Toyota RAV4 Limited 4WD | $21,408 |
| Chevrolet Malibu LT | $21,571 |
| Toyota Tacoma Double Cab TRD Sport Package 4WD | $21,578 |
| Ford Focus SES 4-Dr Sedan | $22,331 |
| Chevrolet Impala LTZ | $22,504 |
| Ford Edge Sport 2WD | $22,511 |
| Toyota Corolla S | $22,504 |
| Toyota Camry SE | $22,510 |
| Jeep Wrangler Unlimited Sahara 2WD 4-Dr | $22,654 |
| GMC Sierra SLE Crew Cab 2WD | $22,677 |
| Chevrolet Equinox LTZ AWD | $22,683 |
| Ford Fusion SE 4-Dr Sedan | $22,677 |
| Volkswagen Jetta SEL 4-Dr Sedan | $22,683 |
| Jeep Grand Cherokee Limited 2WD | $22,677 |
| Honda Odyssey Touring | $22,684 |
| Compare Cheap Rates Go | |
Data assumes 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 Philadelphia, PA location which can impact premium rates noticeably.
Looking at the numbers, you can see that cars like the Hyundai Elantra, Honda CR-V, Ford Escape, and Honda Accord are most likely going to be some of the cheaper vehicles to insure for new drivers. Auto insurance rates will be higher anyway just due to the fact that there is more exposure for a learners permit, but in general those makes and models will probably have the lowest insurance prices possible.
For new drivers, one of the big criteria that help determine car insurance rates is where your car is garaged in Philadelphia. Cities with larger populations or higher claim trends likely pay more, whereas areas with less crime or weather claims have the benefit of cheaper auto insurance prices.
The table below lists the most expensive areas in Pennsylvania for a learners permit to buy auto insurance in. Philadelphia is listed at #1 with a yearly cost of $2,037 for the average insured, which is approximately $170 per month.
| Rank | City | Annual Rate |
|---|---|---|
| 1 | Philadelphia | $2,037 |
| 2 | Drexel Hill | $1,504 |
| 3 | Chester | $1,435 |
| 4 | Levittown | $1,421 |
| 5 | Norristown | $1,307 |
| 6 | Allentown | $1,108 |
| 7 | Reading | $1,099 |
| 8 | Plum | $1,089 |
| 9 | Hazleton | $1,088 |
| 10 | Pittsburgh | $1,085 |
| 11 | Erie | $1,082 |
| 12 | Municipality of Monr | $1,081 |
| 13 | Scranton | $1,071 |
| 14 | Easton | $1,069 |
| 15 | Wilkes-Barre | $1,057 |
| 16 | New Castle | $1,057 |
| 17 | Bethlehem | $1,055 |
| 18 | Bethel Park | $1,019 |
| 19 | Altoona | $1,012 |
| 20 | Harrisburg | $985 |
| Find the Best Rates Go | ||
Rate information is approximated as the specific garaging location can decrease or increase coverage rates considerably.
The diagram below shows how choosing a deductible can change yearly insurance costs when researching cheap insurance for a learners permit. The premiums assume a married female driver, full physical damage coverage, and no discounts are applied to the premium.
The data above shows that a 30-year-old driver could lower their policy premium by $260 a year by switching their comprehensive and collision coverages from a $100 deductible up to a $500 deductible, or save $394 by changing to a $1,000 deductible. Even younger insureds, like the Age 20 category, could save up to $558 every year by using higher deductibles when buying full coverage. When increasing deductibles, it is essential to have enough savings to pay the extra out-of-pocket expense, which is the one shortcoming of high deductibles.
Does it make sense to buy full coverage?
Saving money when shopping for car insurance is important to most people, and one of the fastest ways to pay lower rates for insurance for a learners permit is to not insure for full coverage. The example below shows the difference between car insurance costs with and without physical damage coverage. The premiums are based on a clean driving record, no at-fault accidents, $250 deductibles, single marital status, and no discounts are applied to the premium.
If all age groups are averaged, physical damage coverage costs an extra $2,311 per year over having just liability coverage. That may make you wonder when is the right time to remove full coverage. There is no set guideline for dropping full coverage, but there is a general guideline. If the yearly cost for physical damage coverage is 10% or more of replacement cost minus your deductible, then you may want to consider only buying liability coverage.
For example, let’s say your vehicle’s replacement cost is $10,500 and you have $1,000 full coverage deductibles. If your vehicle is damaged in an accident, the most your company will settle for is $9,500 after paying your deductible. If you are currently paying more than $950 a year for physical damage coverage, then it might be time to consider dropping full coverage.
There are some cases where dropping full coverage is not advised. If you haven’t satisfied your loan, you have to carry full coverage in order to prevent the bank from purchasing higher-priced coverage. Also, if you cannot afford to purchase a different vehicle if your current one is damaged, you should not opt for liability only.
A good deal can quickly turn bad
Philadelphia car insurance rates are influenced by many factors that may substantially change the cost of your policy. Simply improving your credit, moving to a new city, or getting a DUI can cause premium changes that may make certain companies much cheaper than others. Also, insurance companies change premium rates without warning to adjust for unexpected claims or profits. A period of higher than normal claims may cause higher priced premiums, while long-term profits may cause lower-cost Philadelphia car insurance rates.
To illustrate this point, the graph below shows a variety of companies that have the cheapest car insurance in Philadelphia, PA for a 30-year-old male driver with a good driving record, no prior claims, and great credit. Based on his personal profile, General Casualty has the cheapest car insurance rates in Philadelphia at $1,701 per year. This is $44 more than the average policy premium paid by Pennsylvania drivers of $1,657. Travelers, USAA, Erie, and Penn National also make the list of the cheapest Philadelphia, PA auto insurance companies.
In this example, we will give the driver from the first set of rates a claim, a little lower credit rating, and a traffic citation. Since each auto insurance company has a unique approach to set premium rates, comparing insurance quotes may now show a different list of the cheapest car insurance companies in Philadelphia as shown below.
Atlantic States now has the best auto insurance rate in Philadelphia, PA with Amica, Donegal Mutual, Travelers, and USAA now being in the top five. This example proves why it is important to do a thorough rate comparison to get the most budget-friendly insurance quotes for a learners permit. Car insurance prices consist of many factors and can change substantially, so the best price the last time you shopped around may now be one of the more expensive options.