Figuring out which company has the cheapest insurance rates for infrequent drivers requires more time than just quoting one company’s rates. Every car insurance company has a unique approach to establish rates, so we will examine the insurance companies with the overall cheapest rates in Philadelphia.
It’s a good idea to know that Philadelphia, PA insurance rates are influenced by many factors which can substantially change the cost of having a policy. Simply improving your credit, moving to a different location, or getting a couple of tickets may generate price changes that can make some companies cheaper in comparison to the competition.
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| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | General Casualty | $740 |
| 2 | Travelers | $779 |
| 3 | Erie | $800 |
| 4 | USAA | $817 |
| 5 | Penn National | $840 |
| 6 | Amica | $992 |
| 7 | Auto-Owners | $993 |
| 8 | Atlantic States | $1,005 |
| 9 | Donegal Mutual | $1,058 |
| 10 | GEICO | $1,145 |
| 11 | State Farm | $1,162 |
| 12 | Allied | $1,179 |
| 13 | California Casualty | $1,198 |
| 14 | State Auto | $1,279 |
| 15 | Encompass | $1,385 |
| 16 | Mutual Benefit Group | $1,411 |
| 17 | Harleysville | $1,438 |
| 18 | Progressive | $1,457 |
| 19 | Nationwide | $1,477 |
| 20 | Chubb | $1,551 |
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General Casualty has some of the lowest car insurance rates in Philadelphia at around $740 each year. This is $917 less than the average policy premium paid by Pennsylvania drivers of $1,657. Travelers, Erie, USAA, and Penn National also are some of the more affordable Philadelphia, PA auto insurance companies.
In the above example, if you are a customer of Penn National and switched to Travelers, you may see annual savings of in the neighborhood of $61. Policyholders with Amica might save as much as $213 a year, and Auto-Owners policyholders might reduce prices by as much as $214 a year.
If you want to see how much you could save, click here or visit several of the following companies.
Understand that those prices are averaged across all drivers and vehicles in Pennsylvania and are not factoring in a vehicle location for infrequent drivers. So the insurer that can offer the best rates for your situation may not even be in the list above. That point stresses why you need to compare rates from as many companies as possible using your own specific driver and vehicle information.
The make and model of vehicle on the policy is a large consideration when shopping for the lowest-priced coverage for infrequent drivers. Vehicles with higher performance, poor safety features, or a high likelihood of having liability claims will cost significantly more to insure than more modest models.
The list below estimates coverage premiums for some of the most budget-friendly automobiles to insure.
| Vehicle Make and Model | Estimated Cost for Full Coverage |
|---|---|
| Toyota Prius | $4,103 |
| Toyota Tacoma 2WD | $4,299 |
| Honda CR-V EX 4WD | $4,338 |
| Toyota RAV4 Sport 2WD | $4,382 |
| Dodge Grand Caravan Crew | $4,465 |
| Chevrolet Malibu LT | $4,472 |
| Jeep Wrangler Unlimited Sport 4WD 4-Dr | $4,544 |
| Hyundai Elantra SE Touring Station Wagon | $4,601 |
| Volkswagen Jetta 2.0T 4-Dr Sedan | $4,692 |
| Jeep Grand Cherokee SRT-8 4WD | $4,702 |
| GMC Sierra SLT Crew Cab 2WD | $4,692 |
| Honda Odyssey Touring | $4,698 |
| Nissan Rogue S AWD | $4,705 |
| Ford F-150 XL Super Cab 4WD | $4,762 |
| GMC Sierra 2500HD SLT Extended Cab 4WD | $4,920 |
| Hyundai Sonata SE 4-Dr Sedan | $4,933 |
| Ford Escape Limited 4WD | $4,937 |
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Data variables include single female driver age 40, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Pennsylvania minimum liability limits. Discounts applied include multi-vehicle, safe-driver, claim-free, homeowner, and multi-policy. Premium amounts do not factor in specific garaging location which can revise coverage rates considerably.
Looking at the numbers, we can tell that vehicles like the Toyota Prius, Toyota Tacoma, and Honda CR-V are most likely to be some of the cheaper vehicles to insure for low mileage drivers.
Get discounts on Philadelphia auto insurance rates
Insurers that sell policies for infrequent drivers may additionally offer policy discounts that can lower rates by as much as 30% if you meet certain criteria. A list of companies and their offered discounts are detailed below.
- GEICO includes discounts for multi-policy, membership and employees, driver training, air bags, anti-theft, federal employee, and good student.
- MetLife may have discounts that include claim-free, multi-policy, defensive driver, good driver, good student, accident-free
- State Farm offers premium reductions for anti-theft, defensive driving training, driver’s education, multiple autos, good driver, and safe vehicle.
- Progressive may offer discounts for online quote discount, multi-policy, homeowner, multi-vehicle, online signing, good student, and continuous coverage.
- Mercury Insurance has discounts for anti-theft, accident-free, good driver, annual mileage, low natural disaster claims, and multi-car.
- 21st Century policyholders can earn discounts including teen driver, 55 and older, good student, anti-lock brakes, and theft prevention.
- Allstate may include discounts for defensive driver, senior citizen, premier plus, farm vehicle, premier discount, FullPay discount, and safe driver.
The chart below illustrates the difference between yearly insurance costs with and without discounts applied to the premium. The rate quotes are based on a female driver, no violations or accidents, Pennsylvania state minimum liability limits, full coverage, and $500 deductibles.
The first bar for each age group shows the price with no discounts. The second shows the rates with multiple policy, marriage, vehicle safety, accident-free, multiple vehicle, and passive restraint discounts applied. In this example, the average savings per year on insurance for infrequent drivers is 28% or $411.
The illustration below demonstrates how deductibles can influence insurance premiums when trying to find cheap insurance for infrequent drivers. The rate quotes are based on a single female driver, comp and collision included, and no other discounts are factored in.
The data above shows that a 30-year-old driver could lower their policy premium by $298 a year by changing from a $100 deductible to a $500 deductible, or save $450 by selecting a $1,000 deductible. Even younger insureds, like the 20-year-old example, have the ability to save as much as $662 each year just by choosing larger deductibles.
When choosing a higher deductible, it is important to have enough funds in savings to be able to cover the extra out-of-pocket expense, which is the one inconvenience of using high deductibles.
Should you buy full coverage?
Reducing the cost of insurance is probably important to the majority of vehicle owners, and one easy way to pay lower rates for insurance for infrequent drivers is to not buy comprehensive and collision coverage. The diagram below shows the comparison of car insurance rates when comparing full coverage to liability only. The information is based on no claims, a clean driving record, $500 deductibles, single marital status, and no additional discounts are factored in.
If we average all the age groups together, physical damage coverage on your policy costs an extra $1,700 per year over liability only. Many drivers will wonder if buying full coverage is a good investment. There isn’t a steadfast formula that works best for making the decision to drop comprehensive and collision coverage on your policy, but there is a general guideline. If the yearly cost for physical damage coverage is more than around 10% of the settlement you would receive from your company, then you might want to think about dropping full coverage.
For example, let’s assume your vehicle’s settlement value is $8,000 and you have $1,000 physical damage deductibles. If your vehicle is destroyed, you would only receive $7,000 after you pay the deductible. If you are paying over $700 a year to have full coverage, then it’s probably a good time to buy liability coverage only.
There are some circumstances where dropping full coverage is not in your best interest. If you still owe a portion of the original loan, you have to maintain full coverage as part of the loan conditions. Also, if your emergency fund is not enough to purchase a different vehicle in the event your current vehicle is totaled, you should maintain full coverage.
Comparing rates can save you money
Philadelphia, PA insurance rates are impacted by many factors that may substantially change the cost of coverage. Simply getting older, filing a claim, or getting a couple of tickets can cause premium changes that can cause some rates to be more affordable than before. Not only that, but companies file new rates at least once a year to adjust for unexpected claims or profits. An unexpected high level of claims may result in increased policy costs, while a better claims history can cause lower-cost Philadelphia car insurance rates.
For example, the graph below compares the cheapest car insurance in Philadelphia, PA for a 30-year-old male driver with a clear driving record, no claims, and a decent credit rating. When quoting prices based on his personal risk profile, General Casualty quotes the most affordable car insurance rates in Philadelphia at $1,585 a year. This is $72 less than the average policy premium paid by Pennsylvania drivers of $1,657. USAA, Erie, Travelers, and Penn National are the rest of the best Philadelphia, PA auto insurance companies.
In this example, we will give the driver in the first example a chargeable claim, slightly worse credit, and a speeding citation. Because every insurance company uses a different method for determining rates, comparing insurance quotes may result in a slightly different list of the cheapest Philadelphia car insurance companies as shown below.
Amica now has the cheapest car insurance in Philadelphia with Atlantic States, Donegal Mutual, USAA, and Erie also being competitive. This example shows why drivers need to compare rates when trying to get the most budget-friendly insurance rates for infrequent drivers. Prices consist of many different factors and change substantially, so the cheapest option when you last compared rates may now be an over-priced policy.