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.

Auto-Owners, Erie, and State Farm are great options for Philadelphia drivers looking for affordable rates without sacrificing customer service.

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.

Erie

• 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.

State Farm

• 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.

Summary

Honorable mentions

USAA

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 most of the other companies on this list have lower average rates in Philadelphia, USAA’s rates are still below 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). USAA is a great choice for military-affiliated drivers looking for specialized service.

Travelers

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. However, for customers prioritizing cost above all else, it’s worth getting a quote. Travelers also has the cheapest rates in Pennsylvania for drivers with certain high-risk designations, such as DUI, at-fault accident, or speeding ticket.

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.

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.

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: $100,000 per accident
• Uninsured and underinsured motorist bodily injury: $50,000 per person/$100,000 per accident
• Comprehensive and collision: $500 deductible

We assess customer satisfaction and claims practices through third-party sources such as J.D. Power, CRASH Network, and the National Association of Insurance Commissioners (NAIC).