Car insurance in Philadelphia: Cheapest insurance and average rates

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Car insurance in Philadelphia costs $2,782 per year for full coverage – $232 per month. In 2024, Travelers offers the cheapest car insurance policy at $132 per month.

Philadelphia is one of the nation’s largest and most iconic cities. It is the site of both the Liberty Bell and Independence Hall, where the Declaration of Independence was born. Unfortunately, Philadelphia is also known for major traffic congestion. Before driving in the City of Brotherly Love, make sure you have adequate car insurance. 

Philadelphia can be an expensive place to buy car insurance. However, if you shop around, there are still ways to find cheap car insurance in Philadelphia with the coverage you need. 

Learn more about what a typical policy costs in Philadelphia, as well as the rules of the road in the city.  

How to find the best car insurance in Philadelphia

With the right tools and a little work, you can find Philadelphia car insurance that provides the coverage you need at a good price. 

It’s important to know precisely what type of coverage you require and how much insurance to purchase. Once you’ve figured this out, you can start shopping. 

The best way to get the cheapest car insurance in Philadelphia that keeps you fully protected is to compare rates from several providers. Make sure to ask about any discounts you qualify for. It’s always best to buy as much coverage as you can afford.

The cheapest car insurance company in Philadelphia

Travelers provides the cheapest car insurance in Philadelphia, according to Insure.com research. It costs an average of $1,585 annually to purchase a full coverage policy from the insurer in Philadelphia. 

The next cheapest car insurance companies are Nationwide and Donegal. See more annual rates from insurance companies in the table below.

How much is car insurance in Philadelphia per month?

Philadelphia residents can expect to pay an average of $232 monthly in full coverage car insurance costs. 

Not everybody will pay that precise amount, of course. Some drivers will pay less, others more. The insurance company you choose — and the amount of coverage you purchase — play a large role in how much your monthly premiums will cost. 

“Paying the full-term premium up front is typically less expensive than paying in installments,” says Rick Kautzer, director of personal lines product management for Dairyland Insurance.

Your age and gender, the type of car you drive, your history of accidents and violations and other factors also will impact your car insurance costs.  

How do rates in Philadelphia compare to other large cities in the U.S.?

The cost of coverage in Philadelphia compares unfavorably to other major cities – it’s more expensive than Chicago and New York.

James Brau, professor of finance at Brigham Young University, says that the more risk the insurance company must bear, the higher the premium they must charge to stay in business and make a profit. 

“Large cities tend to present more risk to the insurance companies than rural areas. Large cities have more people, more cars and higher chances of getting in wrecks or having other damage done to vehicles,” Brau says. “As such, insurance firms must charge higher premiums in cities. Cities that are relatively more dangerous, in turn, must charge higher premiums than cities that are not as risky. Insurance companies study damage losses per metropolitan area and assign premiums depending on the number of wrecks in an area.”

See how much you can expect to pay for car insurance in several major U.S. cities in the table below.

Here’s what you need to know when driving in Philadelphia

Philadelphia is one of the most congested cities in the world, ranking eighth among major cities globally, according to INRIX, which looks at traffic patterns. So, it’s no surprise that the city’s roadways are among the most congested in the U.S. 

In 2022, drivers in Philadelphia lost an average of 114 hours in traffic, according to INRIX.

If you are driving in the Philadelphia area during rush hour, you can expect to spend an extra 19.3 minutes in traffic, according to the website CoPilot. That places Philadelphia at No. 16 among all cities in the nation when it comes to losing time due to rush hour. 

Other things to remember when driving around Philadelphia:

• Speed limits in Philadelphia are typically 35 mph on streets and 15 mph in school zones. Variations on these limits should be posted on roads where other speed limits apply.
• In March 2022, Philadelphia’s Driving Equality Act went into effect. This law prevents city police from pulling over drivers for several minor violations, ranging from a missing tail light to registration that is less than 60 days late. 
• Philadelphia has just one toll road — the Pennsylvania Turnpike, which runs east to west across the state. 
• Owners of electric vehicles will find more than 180 charging stations in and around the city. 
• You must remove all snow and ice from your car before driving. A law that went into effect in 2022 states that drivers must make a reasonable effort to clear their cars of snow and ice within 24 hours after a winter weather event. Failure to do so can result in a $50 fine, and fines increase if ice or snow from your car seriously injures someone.
• You must also turn on your lights whenever your windshield wipers are operating.  

How much car insurance do I need in Philadelphia?

Pennsylvania law requires you to purchase a minimum amount of liability car insurance coverage. The required amounts are as follows: 

• $15,000 of coverage for injuries per person 
• $30,000 bodily injury liability per accident
• $5,000 of coverage for property damage per accident

This is often referred to as “15/30/5 coverage.”

Pennsylvania drivers must carry at least this much coverage to comply with state law. However, minimum levels of coverage may not be enough to fully protect you financially. If you seriously injure or even kill someone, you could be responsible for hundreds of thousands of dollars in liability costs. 

You would have to pay these costs out of pocket without adequate insurance. To avoid this, it makes sense to purchase additional coverage.  

Drivers also might be interested in protecting their own vehicles by purchasing comprehensive and collision coverage. 

Some people find it difficult to determine how much coverage they need. Consulting with an insurance agent can help you identify the right amount. 

Average cost of car insurance in Philadelphia

The average cost of car insurance in Philadelphia is $2,782 annually. That compares to an average cost of $1,872 in Pennsylvania as a whole and a nationwide average of $1,895. 

How much does car insurance in Philadelphia cost with violations?

Moving violations on your driving record will push your car insurance rates higher. Violations such as speeding tickets often cause a significant but manageable rise in rates. 

Other types of violations can make rates climb much higher. This is particularly true if you are convicted of a DUI. 

See rate increases in Philadelphia in the table below by violation.

Cheapest car insurance in Philadelphia by age

Age can play a large role in the cost of car insurance. Drivers in specific age groups are more likely to get in accidents or to be ticketed for moving violations. This makes them a bigger risk to insure. 

The youngest drivers tend to pay the highest rates. Seniors also may pay more for coverage. See how much you can expect to pay by age in the table below.

Compare auto insurance rates in Philadelphia by ZIP code 

Where you live also plays a role in how much you pay in car insurance costs. Here are the Philadelphia ZIP codes where you can expect to pay the cheapest and most expensive car insurance rates. 

Our recommendations: Car insurance for drivers in Philadelphia

On average, Travelers offers the cheapest insurance to drivers in Philadelphia. If your budget is tight, Travelers can be a good choice.  

However, remember that you might pay more or less than that average. Also, it is important to consider factors other than price when buying car insurance. For example, you want to make sure the insurer provides the coverage you need and that it offers excellent customer service. 

Shopping around and gathering quotes from several insurance companies is the best way to get the coverage you need at the best price. 

A full coverage insurance policy with liability limits of 100/300/100 is the best option for most drivers. Consider increasing your liability limits as you accumulate wealth and your net worth increases. Purchasing as much car insurance as you can afford will give you peace of mind as you navigate the roads of Philadelphia.

What our expert says

Q: Why do insurance rates vary from city to city?

Dr. James BrauJoel C. Peterson Professor of Finance Brigham Young University

“Large cities tend to present more risk to the insurance companies than rural areas. Large cities have more people, more cars and higher chances of getting in wrecks or having other damage done to vehicles. As such, insurance firms must charge higher premiums in cities. Cities that are relatively more dangerous, in turn, must charge higher premiums than cities that are not as risky. Insurance companies study damage losses per metropolitan area and assign premiums depending on the number of wrecks in an area.”

Resources & Methodology

Sources:

Methodology

In 2024, Insure.com commissioned Quadrant Information Services to pull rates for a 40-year-old who has a 12-mile commute and drives a 2023 Honda Accord LX 10k miles annually. The hypothetical driver has full coverage, carrying policy limits of 100/300/100 with $500 deductibles for comprehensive and collision coverages. We analyzed 51,088,003 insurance quotes from 167 companies across 34,588 ZIP codes in every state and Washington, D.C.

Chris Kissell

Contributing Researcher

 

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Chris Kissell is a Denver-based writer and editor with work featured on U.S. News & World Report, MSN Money, Fox Business, Forbes, Yahoo Finance, Money Talks News and more.