You have most likely seen the catchy advertisements from insurers like Liberty Mutual, Nationwide, and Farmers that guarantee the cheapest rates, so you should just pick the company with the best ad, right?
That is not the case, however, as there are a ton of unknown aspects like if you are a homeowner, if full coverage is needed, and the level of liability coverage you want. This article delves into these types of topics and hopefully give you enough understanding to have a good start in finding the cheapest insurance in Philadelphia.
For new drivers, one of the big components that are looked at to help calculate insurance cost is your address in Philadelphia. Regions with more people or even just more weather-related claims tend to have more expensive car insurance rates, whereas more rural areas have the luxury of cheap car insurance rates.
The table below sorts the highest-priced places in Pennsylvania for first-time drivers to purchase auto insurance in. Philadelphia is ranked #1 with a yearly cost of $1,997 for the average policyholder, which is around $166 monthly.
| Rank | City | Premium Per Year |
|---|---|---|
| 1 | Philadelphia | $1,997 |
| 2 | Drexel Hill | $1,489 |
| 3 | Chester | $1,435 |
| 4 | Levittown | $1,365 |
| 5 | Norristown | $1,320 |
| 6 | Allentown | $1,130 |
| 7 | Pittsburgh | $1,085 |
| 8 | Scranton | $1,081 |
| 9 | Wilkes-Barre | $1,079 |
| 10 | Erie | $1,071 |
| 11 | Reading | $1,066 |
| 12 | Municipality of Monr | $1,059 |
| 13 | Easton | $1,058 |
| 14 | Plum | $1,057 |
| 15 | Hazleton | $1,056 |
| 16 | Bethlehem | $1,045 |
| 17 | New Castle | $1,026 |
| 18 | Harrisburg | $1,015 |
| 19 | Lancaster | $1,005 |
| 20 | Altoona | $1,002 |
| 21 | Williamsport | $986 |
| 22 | Bethel Park | $979 |
| 23 | Lebanon | $960 |
| 24 | York | $954 |
| 25 | State College | $905 |
| Compare Prices Now Go | ||
Table data uses approximated as specific Philadelphia zip code can decrease or increase insurance rates considerably.
The vehicle model you are insuring is a large factor when shopping for low-cost insurance for first-time drivers. Vehicles with high performance, a lack of modern safety features, or an increased likelihood of liability claims will cost more to insure than more economical and safe models. The next list shows car insurance premiums for a selection of the cheapest vehicles to buy insurance for.
| Make, Model, and Trim Level | Estimated Cost for Full Coverage |
|---|---|
| Hyundai Elantra GLS Touring Station Wagon | $17,327 |
| Ford Escape XLS 4WD | $17,335 |
| Honda Accord LX 4-Dr Sedan | $17,327 |
| Honda CR-V EX-L 2WD | $17,492 |
| Toyota Prius | $18,717 |
| Ford Edge SE 2WD | $19,319 |
| Ford F-150 XLT Regular Cab 2WD | $19,327 |
| Ford Explorer XLT AWD | $19,484 |
| Volkswagen Jetta SE 2.5 Station Wagon | $19,778 |
| GMC Sierra SL Extended Cab 2WD | $20,545 |
| Nissan Altima 2.5 4-Dr Sedan | $20,553 |
| Toyota RAV4 Limited 4WD | $20,545 |
| Chevrolet Impala LT | $20,552 |
| Find Cheaper Rates Go | |
Prices above 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 claim-free, and safe-driver. Premium costs do not factor in specific garaging location which can increase or decrease insurance rates noticeably.
Looking at the numbers, you can presume that makes and models like the Hyundai Elantra, Ford Escape, Honda Accord, and Honda CR-V are likely to be the cheapest vehicles to insure for new drivers. The cost of a car insurance policy will trend higher because there is more claim exposure for first-time drivers, but in general those particular models will tend to have the least expensive rates that you are likely to find.
Discount Philadelphia insurance rates
Insurance providers that sell policies for first-time drivers may have policy discounts that could lower prices by 35% or more if you are eligible to receive them. A few of the larger companies and their possible discounts are included below.
- State Farm includes discounts for multiple autos, Drive Safe & Save, anti-theft, multiple policy, student away at school, and good driver.
- Farmers Insurance discounts include pay in full, teen driver, distant student, multi-car, early shopping, and good student.
- GEICO may have discounts that include federal employee, good student, defensive driver, anti-lock brakes, and driver training.
- American Family offers premium reductions for mySafetyValet, early bird, good driver, accident-free, TimeAway discount, defensive driver, and multi-vehicle.
- Nationwide may include discounts for anti-theft, good student, defensive driving, easy pay, accident-free, multi-policy, and Farm Bureau membership.
- Progressive offers discounts including online signing, good student, multi-vehicle, homeowner, and continuous coverage.
The illustration below shows the difference between insurance costs with and without discounts. The price estimates are based on a male driver, a clean driving record, no claims, Pennsylvania state minimum liability limits, comprehensive and collision coverage, and $1,000 deductibles. The first bar for each age group shows insurance cost with no discounts. The second shows the rates with paid-in-full, paperless filing, vehicle safety, continuous coverage, passive restraint, and good student discounts applied. With discounts applied, theaverage yearly reduction on insurance for first-time drivers is 28% or $514.
Buying coverage from the right auto insurance company can be challenging considering how many companies there are in Pennsylvania. The rank data in the next section can help you analyze which car insurance providers you want to consider when comparing auto insurance rates for first-time drivers. These rankings are for companies with a national presence, so smaller regional companies are not taken into consideration for the list.
| Company | Value | Customer Service | Claims | Customer Satisfaction | A.M Best Rating | Overall Score |
|---|---|---|---|---|---|---|
| The General | 96 | 100 | 92 | 91% | A- | 95 |
| Titan Insurance | 87 | 96 | 94 | 93% | A+ | 92.9 |
| The Hartford | 88 | 96 | 91 | 93% | A+ | 92.6 |
| Progressive | 84 | 94 | 99 | 90% | A+ | 92.4 |
| Travelers | 84 | 93 | 100 | 87% | A++ | 92.3 |
| State Farm | 84 | 93 | 95 | 87% | A++ | 91 |
| Farmers Insurance | 87 | 92 | 90 | 85% | A | 90.6 |
| Erie Insurance | 79 | 93 | 90 | 87% | A+ | 88.6 |
| Safeco Insurance | 85 | 91 | 87 | 86% | A | 88.4 |
| USAA | 71 | 93 | 98 | 87% | A++ | 88 |
| GEICO | 73 | 93 | 95 | 85% | A++ | 87.1 |
| 21st Century | 85 | 85 | 91 | 89% | A | 86.9 |
| Liberty Mutual | 72 | 91 | 97 | 83% | A | 86.4 |
| AAA Insurance | 85 | 85 | 88 | 86% | A | 85.8 |
| Nationwide | 71 | 90 | 93 | 83% | A+ | 84.9 |
| Allstate | 69 | 92 | 92 | 83% | A+ | 84.4 |
| American Family | 77 | 96 | 80 | 85% | A | 83.8 |
| Esurance | 70 | 80 | 89 | 77% | A+ | 79.2 |
| Compare Rates Now Go | ||||||
Data Source: Insure.com Best Car Insurance Companies
Should you buy full coverage?
Saving money when shopping for insurance is probably important to most vehicle owners, and one common way to pay less for insurance for first-time drivers is to buy liability only. The diagram below illustrates the comparison of insurance rates when comparing full coverage to liability only. The data is based on no claims, a clean driving record, $500 deductibles, single status, and no policy discounts are applied.
Averaged for all age groups, physical damage coverage costs an additional $1,554 per year over and above liability only. Many drivers may wonder if it’s worth it to buy full coverage. There is no definitive guideline to stop buying comprehensive and collision coverage on your policy, but there is a guideline you can use. If the annual cost of having full coverage is more than around 10% of any settlement you would receive from your insurance company, then it could be time to drop full coverage.
For example, let’s assume your vehicle’s replacement cost is $10,000 and you have $1,000 full coverage deductibles. If your vehicle is damaged in an accident, the most you would get paid by your company is $9,000 after the deductible is paid. If you are currently paying more than $900 annually for your policy with full coverage, then it may be the right time to buy liability only.
The importance of comparing Philadelphia car insurance rates
Pennsylvania insurance rates are calculated based on many things that may substantially change the price of your policy. Simply getting older, marrying your spouse, or getting a ticket for careless driving may generate price changes that can make some companies more affordable than the competition. And not only may your rating factors change, but insurers modify rates at least once a year to help ensure profitability. An extended period of higher than normal claims may result in more expensive premiums, while lower claim levels may cause cheaper Philadelphia car insurance rates.
For example, the bar chart below shows the companies that have the cheapest car insurance in Philadelphia, PA for a 30-year-old female driver with no accidents or violations, and a good credit history. If we look at prices based on her current risk factors, General Casualty may offer the cheapest car insurance rates in Philadelphia at $1,666 per year. This is $9 more than the average rate paid by Pennsylvania drivers of $1,657. USAA, Erie, Travelers, and Penn National are the remainder of the cheapest Philadelphia, PA auto insurance companies.
In this next rate comparison, we will give the driver from the first set of rates some claims, poor credit, and a stop sign violation. Because each insurer uses their own method to set policy rates, analyzing rate quotes may now present a completely different list of affordable companies as shown below.
Atlantic States now has the best insurance rate in Philadelphia with Amica, Donegal Mutual, USAA, and Erie also being competitive. This shows why consumers need to take the time to compare as many rates as possible when trying to find the most affordable car insurance rates for first-time drivers. Insurance prices are made up of many risk factors and change substantially, so the most economical company the last time you compared rates may now be quite expensive.
If you like to have a consultation when comparing insurance rates for new drivers, the agents below can probably provide answers to your questions and help you determine which coverage meets your needs best.
To locate an agency in your neighborhood, click the button after the list or click here to compare rates now.
- Wade Insurance Agency
143 E Roosevelt Blvd – Philadelphia, PA 19120 – (215) 457-4995 - John Nicolucci – State Farm Insurance Agent
6001 Ridge Ave – Philadelphia, PA 19128 – (215) 482-7000 - Jack Stabler – State Farm Insurance Agent
6726 Torresdale Ave – Philadelphia, PA 19135 – (215) 331-4300 - Terra Insurance Services
1879 Cottman Ave – Philadelphia, PA 19111 – (215) 742-3743