Cheapest Car Insurance Companies in Philadelphia, PA (2023 Rates)

Your most affordable car insurance option may differ based on your specific driver profile. Travelers offers the lowest prices for both minimum and full coverage car insurance as well as for drivers with a history of speeding tickets and at-fault accidents. It’s also the cheapest for military personnel, young adults, seniors and sports car owners. State Farm is the cheapest choice for drivers with DUIs, while Nationwide is the most budget-friendly alternative for teen drivers and those with poor credit scores.

MoneyGeek also evaluated the best car insurance providers in Philadelphia that strike an ideal balance between affordability and top-notch service.

Our analysis reveals that the cheapest car insurance companies in Philadelphia for minimum coverage policies are:

• Travelers: $463 per year
• Erie: $543 per year

Dairyland is the costliest provider in the city, providing a minimum coverage policy of $2,041 annually. On a statewide basis, Westfield offers the cheapest auto insurance in Pennsylvania for minimum coverage at $267 yearly as of October 2022. This disparity highlights the influence of location and population density on the cost of auto insurance.

The minimum requirements for auto insurance policies in Pennsylvania provide coverage for bodily injuries, property damage and first-person medical benefits, with limits as follows:

• $15,000 bodily injury liability per person
• $30,000 bodily injury liability per accident
• $5,000 property damage liability per accident
• $5,000 first party benefits

If you cause $50,000 in third-party injuries in an at-fault accident and you have minimum coverage, your insurer will only cover $30,000. You will be required to pay the remaining $20,000.

The following companies offer the most affordable full coverage car insurance in Philadelphia:

• Travelers: $1,032 per year
• Nationwide: $1,224 per year

Dairyland is the priciest provider of full coverage car insurance in Philadelphia, with an average cost of $4,736 per year. Looking at the state as a whole, Nationwide offers the cheapest full coverage car insurance in Pennsylvania as of October 2022, with an average rate of $580 per year, indicating that Philadelphia has higher rates than other cities in the Keystone State.

A full coverage policy adds comprehensive and collision insurance.

• Collision insurance: This covers damages to your vehicle resulting from an at-fault accident due to a collision with another car or object, such as a tree, fence or light pole.
• Comprehensive insurance: This covers damages to your vehicle caused by non-collision incidents such as theft, vandalism, animal damage, falling branches, fire, flooding and other severe weather events.

If you own an older, low-value vehicle, paying hundreds of dollars more per year for full coverage may not be worthwhile.

The following insurance providers offer the cheapest full coverage car insurance in Philadelphia for drivers with offenses:

• Speeding ticket: Travelers ($1,302 per year)
• At-fault accident: Travelers ($1,421 per year)
• DUI: State Farm ($1,475 per year)

Dairyland has the most expensive average annual premiums for drivers with speeding tickets and at-fault accidents, charging an average of $5,994 and $6,539, respectively. Meanwhile, Westfield has the highest rate for drivers with DUIs, with an average premium of $6,551 per year. Driving offenses can significantly raise car insurance premiums, so even the cheapest rates for drivers with violations will still be much higher than for those with clean driving records.

Typically, car insurance premiums rise with the severity of the driving violation. In Philadelphia, receiving a speeding ticket results in an average annual increase of $467 in car insurance premiums, whereas a DUI can add an extra $1,433 to your yearly expenses. However, it's still possible to find cheap auto insurance with a bad driving record if you shop around for discounts and compare rates.

These are the cheapest auto insurance providers in Philadelphia for teenagers included in a family policy:

• Nationwide: $2,676 per year for male and female teens
• Travelers: $3,015 per year for male and female teens

With an average rate of $6,755 per year, Progressive has the highest rates for insuring teenagers on a family policy.

Opting to be included in a family policy rather than buying a separate one is a more cost-effective choice for teenagers. Plus, most teens under the age of 18 cannot legally purchase car insurance without the written consent of a parent or guardian. On average, adding a 16-year-old to a family policy costs $2,393. However, the same teenager would have to pay around $4,415 per year if they purchased a separate policy, which is a 46% increase in rates. It is recommended to compare rates from different providers to find the cheapest car insurance for teens.

The most affordable car insurance companies in Philadelphia for those with military backgrounds are:

• Travelers: $1,032 per year
• Nationwide: $1,224 per year

Exclusively serving the military community, USAA is another option at a competitive rate of $1,276 per year for full coverage car insurance in Philadelphia. For those seeking minimum coverage, Travelers provides the cheapest car insurance for military drivers, with an average annual premium of $463.

GEICO may also be a great choice for auto insurance if you are part of the military community. It has military-specific discounts that may lower your premium significantly.

To discover the most affordable car insurance rates, it's recommended to compare quotes from various providers. However, it typically involves spending at least 15 minutes filling out forms with personal details just to get a quote from one company.

MoneyGeek's car insurance calculator can quickly provide an estimated rate based on your age, driving record, vehicle and preferred coverage levels by analyzing available data from multiple companies.

MoneyGeek found that these companies offer the cheapest car insurance for young adults in Philadelphia:

• Travelers: $1,140 per year
• Nationwide: $1,457 per year

Dairyland is the most expensive car insurance company for young adults, aged 22 to 29, with an average annual premium of $5,864 for a full coverage policy. Young adult drivers in Philadelphia can expect to pay higher rates for car insurance than middle-aged drivers. We found that drivers in their 20s pay an average of $447 more per year for full coverage car insurance than drivers in their 40s.

The following are the cheapest auto insurance providers for seniors in Philadelphia:

• Travelers: $986 per year
• Nationwide: $1,061 per year

For seniors in Philadelphia, Dairyland is the most expensive auto insurance company, charging $4,131 per year for full coverage. Car insurance rates for older drivers are generally cheaper than for middle-aged drivers. On average, a 40-year-old driver in Philadelphia spends $1,868 per year, while a 65-year-old only pays $1,707 per year. However, rates increase as seniors age into their 70s and 80s due to higher accident frequency.

These are the providers offering the cheapest full coverage car insurance in Philadelphia for drivers with poor credit:

• Nationwide: $1,633 per year
• Auto-Owners: $1,992 per year

Dairyland charges the highest annual rate for full coverage car insurance for those with poor credit, which costs $6,257 on average. In Philadelphia, individuals with a poor credit history typically pay around 73% more for car insurance compared to those with good credit scores, which equates to roughly $1,363 more annually. Despite the higher premiums, you can still get relatively cheap auto insurance with bad credit by shopping around.

Auto insurance companies typically charge higher rates to drivers with poor credit because they are perceived as more likely to file claims. However, there are several strategies to lower insurance costs if you have bad credit, including finding discounts, bundling policies and comparing quotes from multiple providers. Improving your credit score can also lead to reduced premiums over time.

The following companies offer the cheapest car insurance for sports car drivers in Philadelphia:

• Travelers: $913 per year
• Nationwide: $1,372 per year

With an average annual rate of $4,661, Dairyland is the most expensive sports car insurance provider in Philadelphia. The type of car you own can significantly impact your insurance premium. Typically, drivers in Philadelphia who own Toyota Camrys pay an average of $1,868 per year for full coverage car insurance. However, owning a Mustang can increase your premium by about 15% to $2,151 annually.

MoneyGeek analyzed quotes for a Ford Mustang to demonstrate how car insurance rates change for sports cars. However, rates may differ for various models. In Philadelphia, sports, luxury and electric cars are typically more expensive to insure, which is a common trend nationwide.

For this analysis, we used full coverage auto insurance policies with bodily injury liability limits of $100,000 per person and $300,000 per accident, along with $100,000 in property damage liability per accident. This policy costs an average of $1,868 annually in Philadelphia. Location, including specific ZIP codes in larger municipalities, is just one of many factors that affect the cost of car insurance.

Full coverage insurance rates in Philadelphia are about $450 higher than the average cost of car insurance in Pennsylvania ($1,418 per year). They are also $603 higher than the national average cost of car insurance ($1,265 per year). Among other cities in Pennsylvania, Philadelphia has the highest auto insurance rates.