Best Car Insurance in Pennsylvania

Allstate is the fourth-largest insurer nationally and a great choice for drivers in Pennsylvania. The company stands out for its bundling and student discounts in particular, and it offers coverages and policy options you won’t find everywhere, such as pay-per-mile insurance and rideshare coverage.

Bundling Discount

Bundling auto and home insurance is often a good idea. Many insurance companies, including Allstate, offer discounts for bundling multiple insurance policies. Additionally, bundling can make it easier to manage your coverage, as you can handle your claims, payments, and policy through a single point of contact.

Allstate reports that customers who bundle auto and homeowners insurance in Pennsylvania can save up to 12 percent.³ This can result in hundreds of dollars in savings per year.

Pay-Per-Mile Option

The U.S. Department of Transportation reports that drivers in Pennsylvania log about 102 billion miles annually, which averages to approximately 11,400 miles per driver per year. That’s 2,000 miles less than the national average of 13,400.⁵ People in major cities like Philadelphia or Pittsburgh may drive even less.

If you don’t drive every day or have a short commute, a pay-per-mile plan could help lower your auto insurance costs. Typically, these plans make most sense if you drive less than 10,000 miles per year.

Pennsylvania is one of 21 states in which Allstate offers its pay-per-mile insurance plan, called Milewise. You’ll pay a base rate, plus a per-mile rate. For example, let’s say you drive an average of 20 miles each day:

Allstate uses a device in your vehicle to record your mileage, and you can monitor your mileage and expenses in the Allstate app. When you have multiple vehicles covered under the same policy, you have the flexibility to decide individually for each vehicle whether it should be categorized as per-mile or under the traditional unlimited-mileage policy.

Rideshare Coverage Available

If you drive for Lyft, Uber, Doordash, GrubHub, or a similar delivery service, the transportation network coverage (TNC) — i.e., the rideshare company’s insurance — does not kick in until you’ve picked up a passenger or order. Your personal auto insurance policy does not cover you while you’re working. That means there may be a gap in your coverage when the app is on and you’re waiting to match with a ride or on your way to pick up. Additionally, TNC policies often have high deductibles.

Allstate’s rideshare coverage (called Ride for Hire) covers this gap by protecting you when the TNC policy and your personal policy wouldn’t apply. This coverage also pays for high TNC deductibles, up to $2,500.

Founded in 1925, Erie holds the highest customer satisfaction ratings of the region (excluding USAA, which is not available to all customers). Its competitive prices and range of options make it a great choice for Pennsylvanians looking to purchase full coverage.

Option to Lock in Your Rate

J.D. Power reports that customer satisfaction with auto insurance companies has plummeted, in large part due to rising rates. Nearly one-third of customers experienced a rate increase from 2022 to 2023, and rates rose by an average of 15.5 percent.

Erie offers an option to lock in your auto insurance rate, helping you keep your premium stable. If you add this endorsement to your policy, your rate won’t change unless you move or change the drivers or vehicles on your policy. In other words, inflation and minor accidents or violations will not increase your premium. If you add or remove coverages, Erie will adjust your premium to reflect that particular change.

Perks and Extras

When you purchase comprehensive coverage, Erie throws in several extra perks:

• Glass repair: Erie waives the deductible for windshield repairs. You can add full window glass, which waives the deductible for window replacement. With both, Erie will provide new wiper blades if your windshield is replaced.
• Locksmith services: If you lock your keys in the car, Erie will pay up to $75 for locksmith costs.
• Personal item coverage: Erie will pay for loss of clothing, luggage, and other personal belongings inside an insured vehicle, up to $350.

In addition, Erie’s policies typically include the following extras at minimal cost:

• First-accident forgiveness: After you’ve been a customer for three years, Erie won’t add a surcharge to your premium the first time you’re at fault in an accident.
• Pet injury coverage: If your pet is injured while riding in your car, Erie will cover treatment costs up to $500 per pet, for a total of $1,000.
• Diminishing deductible: For every consecutive year you don’t file a claim, Erie will reduce your deductible by $100 up to a maximum of $500.

Finally, for $35 or less per year, you can add Erie Auto Plus to your policy, which includes:

• Additional days of transportation coverage
• Diminishing deductible
• $10,000 death benefit
• Waived deductibles in certain situations
• Increased limits for certain coverages (e.g., locksmith costs, personal items, sound equipment, and non-owned trailers)

Range of Coverage Options

For those looking to purchase coverage beyond the minimum, Erie offers full-coverage protection (collision, comprehensive, uninsured/underinsured motorist, medical payments) as well as the following additional options:

Direct Auto is a good option for Pennsylvanians with a DUI, multiple at-fault crashes, or other high-risk driving events. In addition to car insurance, it sells non-auto products like term life insurance and accident medical expense coverage, which you can bundle for savings.

Coverage for High-Risk Drivers

Insurance companies may consider you a high risk driver if you:

• Have one or more at-fault accidents on your record
• Received multiple tickets for speeding or other violations
• Are convicted of DUI or DWI
• Just got your driver’s license
• Have bad credit
• Drive a specialized or high-value car

While Pennsylvania does not require high-risk drivers to file an SR-22, traditional auto insurance companies may refuse to sell you a policy if they view you as too much of a liability.

Direct Auto specializes in insuring drivers whom traditional insurance companies may refuse to cover. It offers all of the standard coverages:

• Bodily injury and property damage liability
• Collision and comprehensive
• Uninsured/underinsured motorist
• Personal injury protection (PIP) and medical payments
• Towing coverage
• Rental reimbursement

It also offers several discounts that high-risk drivers can use to lower their premium, like taking a driver education course or tracking safe driving habits through telematics.

Multi-Product Discounts

Like most insurance providers, Direct Auto offers discounts for bundling multiple policies (e.g., personal auto, motorcycle, and commercial auto insurance). However, you can earn an additional 5 percent savings when you buy a non-auto insurance product. These include:

• Roadside assistance: This includes 24-hour emergency towing assistance, lost key and lockout help, and flat-tire changes.
• Term life insurance: In the event of your passing, this helps cover loss of income, final medical and funeral expenses, daily living expenses (e.g., rent or groceries), and college tuition for your family.
• Emergency protection plan: After an auto accident, this helps pay for unexpected expenses, like ambulance rides and not-otherwise-covered medical bills.

Choose How You Pay

Not only does high-risk auto insurance typically cost more than standard insurance, violations like DUIs come with their own fines and fees. Direct Auto offers payment flexibility, which can help you budget for auto insurance. You can:

• Choose which day of the month to pay your auto insurance bill
• Decide how often you’ll pay, whether in full or installments
• Pay more upfront and lower your monthly payments, like a down payment
• Pick from multiple ways to pay, including credit or debit card, e-check, and cash at a Direct Auto location

According to the Pennsylvania Department of Human Services, the state is home to 800,000 veterans — the fourth-largest veteran population in the country.⁶ About an additional 80,000 active-duty military and National Guard members and their families call the state home.⁷ USAA sells auto insurance and other financial products to individuals affiliated with the U.S. military. It has competitive prices and a strong track record for customer satisfaction.

Standout Roadside Assistance

With USAA’s roadside assistance coverage, you get the following services 24/7:

• Towing to nearest repair shop
• Winching a stuck vehicle
• Jump-starting a dead battery
• Fuel delivery (not including cost of fuel)
• Lockout
• Changing a flat tire (must have spare)

If you carry roadside coverage, you won’t pay for these services unless otherwise specified. Further, USAA is unique in that even if you don’t have roadside assistance, you can still receive assistance and pay negotiated rates, which are often less than what you would pay the provider directly.

Additionally, unlike many providers, USAA’s roadside assistance extends across the U.S. border to the following places:

• Canada
• Mexico (within 75 miles of the U.S.-Mexico border)
• U.S. territories
• For international policies, towing and labor coverage in the base country where the policy is issued

Good for Car Purchases

USAA offers financial services in addition to auto insurance, including auto loans at the following rates:

Discounts for Young Drivers

The cost of insuring teen drivers is higher than almost any other group, due to their inexperience and higher likelihood of being in an accident.

USAA offers a good-student discount for teens and other young drivers, which can help families save on auto insurance. To qualify, the young driver must:

• Be between 16 and 24 years old
• Attend high school, college, university, or vocational technical school full time
• Fulfill at least one of the following criteria:
  • Ranked in upper 20% of the class scholastically
  • B average or higher (3.0 GPA)
  • Included on the honor roll, dean’s list, or similar

Additionally, USAA offers a 10 percent “legacy” discount to drivers under age 25 who are transitioning from their parents’ policy to their own and have had no major violations in the last three years.

State Farm has insurance agents in over 400 cities in Pennsylvania, making it easy to get connected and find coverage. The company is known for low prices, customer satisfaction, and an easy claims process.

Low Premiums

Along with Erie, State Farm offers some of the cheapest premiums in Pennsylvania. The average cost for a minimum coverage policy with State Farm in Pennsylvania is $324 annually ($27 monthly), and the average cost for a full-coverage policy is $960 annually ($80 monthly). That’s 35 percent less than the state average.

State Farm offers the following discounts in Pennsylvania, which can help you save on premiums:⁸

• Accident-free (for three years)
• Anti-theft device
• Driver improvement course (for drivers 55 and older)
• Drive Safe & Save (telematics)
• Driver education (for drivers 21 and under)
• Violation-free (for three years)
• Good student (B average or 3.0 GPA)
• Multiple vehicles
• Multiple policies
• Passive restraint
• Steer Clear (safe driver program specifically for young drivers)
• Student away at school
• Vehicle safety features

Multiple Ways to Save for Safe Driving

State Farm offers multiple programs that can earn customers discounts for safe driving habits, including one geared specifically toward young drivers.

Strong Motorcycle Coverage

According to the Pennsylvania Department of Transportation, there are nearly 800,000 licensed motorcyclists and around 373,000 registered motorcycles in the state.⁹ Pennsylvania is home to several scenic motorcycle routes, including the 107-mile Groundhog Loop through Punxsutawney.

State Farm offers the following motorcycle coverages:

• Bodily injury and property damage liability
• Uninsured/underinsured motorist
• Comprehensive and collision (even if your motorcycle is in winter storage)
• Coverage for attached sidecars
• Emergency roadside expenses
• Damage to protective gear
• Trip interruption expenses

You can purchase motorcycle coverage from State Farm for the following types of vehicles:

• Factory-built motorcycles
• Motor scooters
• Classic motorcycles
• Minibikes
• Custom motorcycles
• Trail bikes

Maybe you don’t own a motorcycle but you’re thinking about buying one. State Farm has an online tool to help you estimate costs depending on the make, model, and type of motorcycle you’re looking at.