Best Cheap Car Insurance in Philadelphia, Pennsylvania

• 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.

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.

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.

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.¹ Philadelphia County has the highest number of traffic deaths 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.

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.