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Last updated: July 28, 2025Best Cheap Car Insurance in Philadelphia
Auto-Owners offers the cheapest auto insurance in Philadelphia at an average of $1,387 for full coverage and $470 for minimum coverage.
Cheapest
Editor's Rating: 4.4/5
Average Cost in Philadelphia
- Full Coverage Monthly: $116
- Minimum Coverage Monthly: $39
Best for Military and Veterans
Editor's Rating: 5/5
Average Cost in Philadelphia
- Full Coverage Monthly: $257
- Minimum Coverage Monthly: $73
Best Major Insurer
Editor's Rating: 4.9/5
Average Cost in Philadelphia
- Full Coverage Monthly: $204
- Minimum Coverage Monthly: $79
Table of Contents
- Key Takeaways
- Our Top Picks
- Compare the Best Cheap Auto Insurance
- Detailed List of the Best Cheap Providers
- Customer Satisfaction Summary
- Cheapest Full Coverage Car Insurance
- Cheapest Minimum Coverage Car Insurance
- How Many Car Accidents Happen in Philadelphia?
- Minimum Auto Insurance Requirements in Pennsylvania
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Key Takeaways
- Auto insurance in Philadelphia is more expensive than the Pennsylvania average — it costs $3,364 annually on average for full coverage and $995 annually on average for minimum coverage.
- Auto-Owners, Erie, and State Farm offer some of the best and cheapest auto insurance in Philadelphia.
- Average rates can be helpful when comparing companies, but they don’t necessarily reflect how much you’ll pay — your rate will depend on various individual factors like your driving history and age.
Our Top Picks for the Best Cheap Auto Insurance in Philadelphia
- Cheapest: Auto-Owners
- Best for Military and Veterans: USAA
- Best Major Insurer: State Farm
- Best for Customer Satisfaction: Erie
- Best for Higher-Risk Drivers: Travelers
Compare the Best Cheap Auto Insurance in Philadelphia
| Company | Full Coverage Annual Avg. | Minimum Coverage Annual Avg. | Mid-Atlantic Customer Satisfaction |
|---|---|---|---|
| Auto-Owners | $1,387 | $470 | Not rated |
| State Farm | $2,453 | $942 | Above average |
| USAA | $3,082 | $872 | Above average |
| Erie | $2,707 | $813 | Above average |
| Travelers | $1,727 | $633 | Below average |
| Philadelphia | $3,364 | $995 | – |
Detailed List of the Best Cheap Providers in Philadelphia
1. Cheapest - Auto-Owners
Why we chose it
Auto-Owners offers the cheapest average rates, by far, for both full coverage and minimum coverage auto insurance in Philadelphia. It’s available in about half the country, and it generally receives positive customer service ratings, although it’s not ranked in J.D. Power’s most recent Auto Insurance Study for the Mid-Atlantic region. However, it received a score of B from the CRASH Network and has an NAIC Complaint Index of 0.94, meaning it receives fewer customer complaints than average.
Who it’s best for
Drivers looking for the absolute cheapest rates who don’t mind going through an agent for both quotes and purchasing.
Philadelphia Pricing
| Auto-Owners | Monthly | Annual | Difference From Philadelphia Average |
|---|---|---|---|
| Full coverage | $116 | $1,387 | -59% |
| Minimum coverage | $39 | $470 | -21% |
2. Best for Military and Veterans - USAA
What We Like Most:
- Military-specific coverage
- Reputation for customer service
- Highest-ranked in Mid-Atlantic
Why we chose it
USAA offers financial products and services, including insurance, exclusively to the military community. It generally offers some of the most affordable auto insurance rates. While our other top picks have lower average rates in Philadelphia, USAA’s rates are still below the city average. It also has the highest customer satisfaction ratings from J.D. Power, by far, with a score of 743 out of 1,000 for the Mid-Atlantic region in the most recent study (despite not being officially ranked due to its eligibility requirements).
Who it’s best for
USAA is a great choice for military-affiliated drivers looking for specialized service. It’s only available to military members, veterans, and their spouses and children.
Philadelphia Pricing
| USAA | Monthly | Annual | Difference From Philadelphia Average |
|---|---|---|---|
| Full coverage | $257 | $3,082 | -8% |
| Minimum coverage | $73 | $872 | -12% |
3. Best Major Insurer - State Farm
What We Like Most:
- Local Philly agents
- Nationally-known insurer
- Good telematics discount
Why we chose it
State Farm consistently ranks highly for customer service, especially among major national insurers. It ranked fourth in J.D. Power’s most recent customer satisfaction study for the Mid-Atlantic region and also ranked above average in J.D. Power’s Claims Satisfaction Study. It offers affordable rates for auto insurance in Philadelphia, particularly for full coverage, and has a wide range of discounts, including for bundling and participating in its telematics program.
Who it’s best for
Those who prefer to work with a local agent and are looking for a policy from a national insurer. State Farm is also a great option for households with young drivers on their policy. It’s also better for customers who plan to purchase full coverage, as there are cheaper minimum coverage averages from other providers in Philly.
Philadelphia Pricing
| State Farm | Monthly | Annual | Difference From Philadelphia Average |
|---|---|---|---|
| Full coverage | $204 | $2,453 | -27% |
| Minimum coverage | $79 | $813 | -5% |
4. Best for Customer Satisfaction - Erie
What We Like Most:
- Highest satisfaction ratings
- Headquartered in PA
- Cheaper-than-average rates
Why we chose it
Erie is a popular insurer that operates in 12 states, including Pennsylvania. It offers below-average rates in Philadelphia and has very strong customer satisfaction ratings. It ranked second on J.D. Power’s 2025 Auto Insurance Study for the Mid-Atlantic region, and it earned an A- rating from CRASH Network, landing it on the Honor Roll. It also has unique coverage options, such as pet injury coverage and AutoPlus, which includes benefits like diminishing deductibles.
Who it’s best for
Drivers looking for exceptional service and affordable rates. Erie offers online quotes, but prospective customers must be willing to work with a local agent to purchase. It’s also ideal for those who want to lock in their rate to prevent annual increases.
Philadelphia Pricing
| Erie | Monthly | Annual | Difference From Philadelphia Average |
|---|---|---|---|
| Full coverage | $226 | $2,707 | -20% |
| Minimum coverage | $68 | $813 | -26% |
5. Best for Higher-Risk Drivers - Travelers
What We Like Most:
- Cheap Philly rates
- Below-average rates with accident or ticket
- Files SR-22s
Why we chose it
After Auto-Owners, Travelers has the next-cheapest average rates in Philadelphia for full and minimum coverage. Its below-average J.D. Power scores for both Mid-Atlantic customer satisfaction and national claims satisfaction kept it from rising higher on this list. Travelers also has the cheapest rates in Pennsylvania for drivers with certain high-risk designations, such as DUI, at-fault accident, or speeding ticket.
Who it’s best for
For customers prioritizing cost above all else — especially those who fall into a higher-risk category — it’s worth getting a quote.
Philadelphia Pricing
| Travelers | Monthly | Annual | Difference From Philadelphia Average |
|---|---|---|---|
| Full coverage | $144 | $1,727 | -49% |
| Minimum coverage | $53 | $633 | -36% |
Philadelphia Best Cheap Picks — Detailed Customer Satisfaction Summary
| Company | J.D. Power Auto Insurance Study – Mid-Atlantic1 | CRASH Network Report Card2 | J.D. Power Claims Satisfaction3 | NAIC Complaint Index |
|---|---|---|---|---|
| Auto-Owners | Not rated | B | 692 | 0.94 |
| State Farm | 673 | C- | 710 | 2.13 |
| USAA | 710 | D+ | 726 | 1.31 |
| Erie | 706 | A- | 733 | 1.13 |
| Travelers | 633 | C | 684 | 1.97 |
| Average | 656 (out of 1,000) | C+ | 697 (out of 1,000) | 1 |
| What the study measures | Customer satisfaction regionally, based on responses from over 40,000 customers | Claims handling and payment practices, based on an annual survey of collision repair shops | Satisfaction with the claims process, based on responses from nearly 10,000 customers who recently filed a claim | Consumer complaints relative to market share. The lower the score, the better |
Cheapest Full Coverage Car Insurance in Philadelphia
Auto-Owners has the cheapest full coverage car insurance in Philadelphia at $1,387 per year on average. That’s 59 percent cheaper than the city average. Travelers and State Farm have the next-cheapest rates at $1,727 per year and $2,453 per year, respectively.
| Company | Annual Philadelphia Average | Monthly Philadelphia Average |
|---|---|---|
| Auto-Owners | $1,387 | $116 |
| Travelers | $1,727 | $144 |
| State Farm | $2,453 | $204 |
| Erie | $2,707 | $226 |
| Nationwide | $2,819 | $235 |
| GEICO | $2,842 | $237 |
| USAA | $3,082 | $257 |
| Allstate | $3,574 | $298 |
| Progressive | $3,697 | $308 |
| Philadelphia average | $3,364 | $280 |
| Pennsylvania average | $1,939 | $162 |
| U.S. average | $2,399 | $200 |
Cheapest Minimum Coverage Car Insurance in Philadelphia
Auto-Owners also offers the cheapest minimum coverage car insurance in Philadelphia, with an average annual premium of $470 — 53 percent below the city average. While Auto-Owners is significantly cheaper than competitors, on average, Travelers and Erie also offer below-average rates.
| Company | Annual Philadelphia Average | Monthly Philadelphia Average |
|---|---|---|
| Auto-Owners | $470 | $39 |
| Travelers | $633 | $53 |
| Erie | $813 | $68 |
| USAA | $872 | $73 |
| GEICO | $882 | $73 |
| State Farm | $942 | $79 |
| Progressive | $947 | $79 |
| Nationwide | $1,121 | $93 |
| Allstate | $1,312 | $109 |
| Philadelphia average | $995 | $83 |
| Pennsylvania average | $625 | $52 |
| U.S. average | $635 | $53 |
How Many Car Accidents Happen in Philadelphia?
In 2024, there were 125 traffic deaths in Philadelphia. This was a slight decrease from 128 in 2023, but still much higher than pre-pandemic levels. Of the deaths in 2024, 54 were pedestrians and three were bicyclists.4 Philadelphia County has the highest number of traffic deaths in Pennsylvania.
Minimum Auto Insurance Requirements in Pennsylvania
Pennsylvania state law requires drivers to have an auto insurance policy with the following minimum coverage limits:
- Bodily injury liability: $15,000 per person/$30,000 per accident
- Property damage liability: $5,000 per accident
- Medical benefits: $5,000 per accident
These minimums are quite low and may not adequately cover damages if you get into a serious accident. The last time Pennsylvania raised its minimum car insurance limits was 1974. We recommend increasing your limits and adding full coverage for better financial protection.
GOOD TO KNOW:
Pennsylvania is a choice no-fault state, also known as an optional tort state. That means drivers can choose between two types of insurance policies: limited tort and full tort. Choosing a limited tort policy reduces your ability to sue for pain and suffering after an accident unless the injuries are serious, but it can significantly lower your car insurance premiums.
FAQs
What is the cheapest car insurance in Philadelphia, Pennsylvania?
The cheapest car insurance in Philadelphia, PA, is offered by Auto-Owners, which has an average annual premium of $1,387 for full coverage and $470 for minimum coverage. That’s 59 and 21 percent below the city averages.
Why is car insurance so expensive in Philly?
Car insurance is so expensive in Philly in part because it’s the largest city in Pennsylvania — more people means more traffic and a higher risk of accidents. Philadelphia also has a higher theft rate than other areas in the state. Finally, auto insurance rates tend to be higher than average in states with a no-fault option, given the way the insurance system works.
Is car insurance mandatory in Philadelphia?
Yes, car insurance is mandatory in Philadelphia and in the whole state of Pennsylvania. The mandatory minimum coverage limits are $15,000 in bodily injury liability per person and $30,000 per accident; $5,000 in property damage liability per accident; and $5,000 in medical benefits per accident.
What happens if I get pulled over without insurance in PA?
If you get pulled over without insurance in Pennsylvania, you may face one or more penalties, including a minimum fine of $300 for driving uninsured, a three-month suspension of your vehicle registration, and a three-month suspension of your driver’s license.
Methodology
At AutoInsurance.com, we evaluate auto insurance providers based on four key factors:
- Price (40%): We analyzed average premiums for full and minimum coverage in Philadelphia, Pennsylvania, for good drivers with good credit. Full coverage averages use the following limits:
- Bodily injury liability: $100,000 per person/$300,000 per accident
- Property damage liability: $50,000 per accident
- Medical payments: $5,000
- Uninsured and underinsured motorist bodily injury: $50,000 per person/$100,000 per accident
- Comprehensive and collision: $500 deductible
- Claims Handling (25%): A good claims handling process from an auto insurer is prompt, transparent, and efficient, with clear communication throughout, fair evaluation of damages, and timely payment or resolution. We assess claims practices through sources like the CRASH Network Insurer Report Card and J.D. Power’s Claims Satisfaction Report, and financial strength from sources like AM Best and S&P Ratings. Real-life customer experiences are included when available.
- Customer Experience (25%): We evaluate the ease of the customer journey, from getting a quote and purchasing a policy to making changes or accessing documents. We consider the availability and quality of both online and agent interactions, as well as the functionality of the company’s website and mobile app. Our sources include J.D. Power studies, the NAIC complaint index, BBB ratings, and app store reviews.
- Coverage Options (10%): We review each company’s coverage offerings and value providers with options beyond the state required minimums, like accident forgiveness, gap coverage, rideshare coverage, and more.
Read more about our ratings and methodology.
Managing Editor & Industry Analyst
Maya Afilalo holds over 10 years of professional experience in writing, communications, and research, which she leverages to provide accurate and reliable information to empower consumers. In addition to overseeing content production, Maya has herself written many articles on auto insurance costs, company comparisons, state laws and requirements, and other topics. She is committed to helping consumers navigate the complex world of car insurance with clarity and confidence. Maya holds a bachelor’s degree from the University of Pennsylvania and a master’s from North Carolina State University.
Citations
Trust Emerges as Top Driver of Customer Satisfaction with Auto Insurance as Prices Continue to Surge, J.D. Power Finds. J.D. Power. (2024, Jun 5).
https://www.jdpower.com/business/press-releases/2024-us-auto-insurance-study2024 CRASH Network Insurer Report Card. CRASH Network. (2024).
https://www.crashnetwork.com/irc/Auto Insurance Repair Cycle Times Improve but Price Increases Take a Toll, J.D. Power Finds. J.D. Power. (2024, Oct 29).
https://www.jdpower.com/business/press-releases/2024-us-auto-claims-satisfaction-study125 People Were Killed by Traffic Violence in 2024. Bicycle Coalition of Greater Philadelphia. (2025, Jan 11).
https://bicyclecoalition.org/125-people-were-killed-by-traffic-violence-in-2024/
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