866-589-5339
Estimated wait time: < 1 minute
Best Cheap Car Insurance in Philadelphia
Auto-Owners, State Farm, USAA, Erie, and Nationwide are our top picks in the City of Brotherly Love and Sisterly Affection.
Cheapest
Editor's Rating:
4.4/5
4.4/5
Average Cost in Philadelphia
- Full Coverage Monthly: $178
- Minimum Coverage Monthly: $81
Best for Military and Veterans
Editor's Rating:5/5
5/5
Average Cost in Philadelphia
- Full Coverage Monthly: $284
- Minimum Coverage Monthly: $109
Best Major Insurer
Editor's Rating:4.9/5
4.9/5
Average Cost in Philadelphia
- Full Coverage Monthly: $252
- Minimum Coverage Monthly: $88
Last updated: May 26, 2026
Key Takeaways: Best Cheap Car Insurance in Philadelphia 2026
Auto-Owners offers the cheapest car insurance in Philadelphia, well below the city average.
Philadelphia full coverage averages $3,062/year — significantly higher than the Pennsylvania average of $2,473/year.
Auto-Owners is the cheapest provider at $2,140/year for full coverage and $974/year for minimum coverage — 30% and 20% below city averages.
Erie and State Farm offer strong alternatives, with below-average rates and above-average customer satisfaction ratings.
USAA is the top-rated option for military members, veterans, and their families, scoring 743/1,000 in J.D. Power’s Mid-Atlantic study.
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 Claims and Customer Satisfaction: Erie
- Best for Low Mileage: Nationwide
Compare the Best Cheap Auto Insurance in Philadelphia
| Company | Full Coverage Annual Avg. | Minimum Coverage Annual Avg. | Mid-Atlantic Customer Satisfaction |
|---|---|---|---|
| Auto-Owners | $2,140 | $974 | Not rated |
| State Farm | $3,029 | $1,056 | Above average |
| USAA | $3,405 | $1,311 | Above average |
| Erie | $2,880 | $1,058 | Above average |
| Nationwide | $3,600 | $1,660 | Below average |
| Philadelphia | $3,062 | $1,224 | – |
Detailed List of the Best Cheap Providers in Philadelphia
1. Auto-Owners - Cheapest
4.4
Editor's Rating:
- Average Philadelphia Rate for Minimum Coverage
- $81 mo.
- Average Philadelphia Rate for Full Coverage
- $178 mo.
Cheapest Philly rates- Good customer service
- Local PA agents
Agent-only sales- Slower digital adoption
Why we chose it
Auto-Owners offers the cheapest average rates, by far, for both full coverage and minimum coverage auto insurance in Philadelphia.
The company sells auto insurance 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 on the CRASH Network Insurer Report Card, which surveys collision repair shops on insurers’ claims practices.
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.
Auto-Owners Philadelphia Pricing
| Auto-Owners | Monthly | Annual | Difference From Philadelphia Average |
|---|---|---|---|
| Full coverage | $178 | $2,140 | -30% |
| Minimum coverage | $81 | $974 | -20% |
2. USAA - Best for Military and Veterans
5
Editor's Rating:
- Average Philadelphia Rate for Minimum Coverage
- $109 mo.
- Average Philadelphia Rate for Full Coverage
- $284 mo.
- Military-specific coverage
- Reputation for customer service
- Highest-ranked in Mid-Atlantic
- Military eligibility required
- Limited to members
- Fewer branch locations
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.
USAA 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.
USAA Philadelphia Pricing
| USAA | Monthly | Annual | Difference From Philadelphia Average |
|---|---|---|---|
| Full coverage | $284 | $3,405 | +11% |
| Minimum coverage | $109 | $1,311 | +7% |
3. State Farm - Best Major Insurer
4.9
Editor's Rating:
- Average Philadelphia Rate for Minimum Coverage
- $88 mo.
- Average Philadelphia Rate for Full Coverage
- $252 mo.
- Local Philly agents
- Nationally-known insurer
- Good telematics discount
- Must complete quotes by phone
- No accident forgiveness
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.
State Farm Philadelphia Pricing
| State Farm | Monthly | Annual | Difference From Philadelphia Average |
|---|---|---|---|
| Full coverage | $252 | $3,029 | -1% |
| Minimum coverage | $88 | $1,056 | -14% |
4. Erie - Best Claims and Customer Satisfaction
5
Editor's Rating:
- Average Philadelphia Rate for Minimum Coverage
- $88 mo.
- Average Philadelphia Rate for Full Coverage
- $240 mo.
- Highest satisfaction ratings
- Headquartered in PA
- Cheaper-than-average rates
- Agent-only
- Fewer online features
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. Erie is among the cheapest providers in Pennsylvania overall.
The company also 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.
Erie Philadelphia Pricing
| Erie | Monthly | Annual | Difference From Philadelphia Average |
|---|---|---|---|
| Full coverage | $240 | $2,880 | -6% |
| Minimum coverage | $88 | $1,058 | -14% |
5. Nationwide - Best for Low Mileage
4.8
Editor's Rating:
- Average Philadelphia Rate for Minimum Coverage
- $138 mo.
- Average Philadelphia Rate for Full Coverage
- $300 mo.
- Pay-per-mile option available
- High claims satisfaction according to J.D. Power survey
- High telematics discount
- Not available in select states
- Expensive for teen drivers
Why we chose it
Philadelphians know how hard it can be to find parking—notwithstanding the median on Broad Street—and the desire not to move your car once you’ve found a spot. Nationwide is the only provider among our top picks to offer a pay-per-mile insurance plan, called SmartMiles. With SmartMiles, you pay a base rate and a variable per-mile rate, which can save you significantly if you don’t drive often.
Nationwide’s telematics program, SmartRide, also has one of the highest potential discounts at 40 percent. The company states SmartRide won’t raise your rates for risky driving.
While Nationwide ranked below average in the Mid-Atlantic region on J.D. Power’s customer satisfaction survey, it scored near the top of its claims satisfaction survey.
Who it’s best for
Philadelphians who drive infrequently, including remote workers and those who rely primarily on public transportation (for high-mileage drivers, Nationwide’s Philly rates are higher than average).
Nationwide Philadelphia Pricing
| Nationwide | Monthly | Annual | Difference From Philadelphia Average |
|---|---|---|---|
| Full coverage | $300 | $3,600 | +18% |
| Minimum coverage | $138 | $1,660 | +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 | 711 | 1.32 |
| State Farm | 673 | D+ | 716 | 1.80 |
| USAA | 710 | C- | 741 | 3.00 |
| Erie | 706 | A- | 743 | 1.61 |
| Nationwide | 636 | C | 729 | 2.27 |
| Average | 656 (out of 1,000) | C+ | 700 (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 $2,140 per year on average. Travelers and Erie have the next-cheapest rates.
| Company | Annual Philadelphia Average | Monthly Philadelphia Average |
|---|---|---|
| Auto-Owners | $2,140 | $178 |
| Travelers | $2,591 | $216 |
| Erie | $2,880 | $240 |
| State Farm | $3,029 | $252 |
| USAA | $3,405 | $284 |
| Nationwide | $3,600 | $300 |
| GEICO | $3,816 | $318 |
| Progressive | $4,050 | $338 |
| Allstate | $4,282 | $357 |
| Philadelphia average | $3,062 | $255 |
| Pennsylvania average | $2,473 | $206 |
| U.S. average | $2,356 | $196 |
Cheapest Minimum Coverage Car Insurance in Philadelphia
Auto-Owners also has the cheapest minimum coverage car insurance in Philadelphia, with an average annual premium of $974. State Farm and Erie are next-cheapest.
| Company | Annual Philadelphia Average | Monthly Philadelphia Average |
|---|---|---|
| Auto-Owners | $974 | $81 |
| State Farm | $1,056 | $88 |
| Erie | $1,058 | $88 |
| Travelers | $1,079 | $90 |
| Progressive | $1,236 | $103 |
| USAA | $1,311 | $109 |
| GEICO | $1,446 | $121 |
| Nationwide | $1,660 | $138 |
| Allstate | $2,076 | $173 |
| Philadelphia average | $1,224 | $102 |
| Pennsylvania average | $638 | $53 |
| U.S. average | $722 | $60 |
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
The cheapest car insurance in Philadelphia, PA, is offered by Auto-Owners, which has an average annual premium of $2,140 for full coverage and $974 for minimum coverage. That’s 30 and 20 percent below the city averages.
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.
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.
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: $100,000 per person/$300,000 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.
Sources
Trust Emerges as Top Driver of Customer Satisfaction with Auto Insurance as Prices Continue to Surge, JD Power Finds. JD Power. (2024, Jun 11).
https://www.jdpower.com/business/press-releases/2024-us-auto-insurance-studyTop Rated U.S. Car Insurance Companies for 2026. CRASH Network. (2026).
https://www.crashnetwork.com/irc/Satisfaction with Auto Insurance Claims Strained by Higher Deductibles, More Total Losses, JD Power Finds. JD Power. (2025, Oct 28).
https://www.jdpower.com/business/press-releases/2025-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/
Related Articles
Compare Cheap Auto Insurance in Pennsylvania
March 24, 2026
Best Car Insurance in Pennsylvania in 2026
February 18, 2026
Best Car Insurance After an Accident 2026
January 22, 2026