Cheapest Auto Insurance in Philadelphia, Pennsylvania (2025)

Philadelphia is home to some of the worst traffic congestion in America. In fact, Inrix found that the city has the 10th-highest traffic delay time of cities worldwide.1

The city’s heavy traffic is one of the reasons Philadelphia residents pay higher-than-average car insurance rates: $233 per month compared to the national average of $144.

Here’s how to find cost-effective car insurance in the City of Brotherly Love.

3 of the cheapest car insurance companies in Philadelphia

When buying cheap auto insurance in Philadelphia, one size certainly doesn’t fit all. Your best option depends on different factors, including your driving history, location, vehicle type, and personal coverage needs.

The table above shows three of the most affordable car insurance companies in Philly to provide a starting point for your comparison shopping.

Best insurer for new-car owners: Foremost

Best insurer for low-mileage drivers: Mile Auto

Best insurer for teen drivers: State Farm

How to get the cheapest car insurance in Philadelphia

Insurance companies consider several factors when setting your rates, including your driving history, age, the type of vehicle you drive, and even your credit history.3

However, you can take steps to secure cheap car insurance:

• Bundle policies. Many insurance companies offer discounts for bundling car insurance with other types of policies, such as homeowners or renters insurance.

• Increase your deductible. Opting for a higher deductible can lower your monthly premiums because you agree to take on more financial responsibility in the event of a claim.

• Maintain a clean driving record. A history of accidents or traffic violations can increase your rates significantly.

• Shop around. Don’t settle for the first quote you receive. Compare rates from multiple companies to find the best deal.

Cheapest liability-only car insurance in Philadelphia: National General

Liability-only car insurance is the minimum coverage Philadelphia law requires. This type of insurance covers injuries and damage you may cause to others in an accident but doesn’t cover damages to your own vehicle.

National General offers the cheapest liability-only policies in Philadelphia, at $119 per month. The table below shows the companies offering the lowest average rates for liability-only coverage in the city.

Cheapest full-coverage car insurance in Philadelphia: State Farm

Full-coverage car insurance includes liability insurance as well as collision and comprehensive coverage. Collision insurance covers damage to your vehicle from accidents, and comprehensive insurance protects against non-collision incidents like theft, vandalism, or hail damage.

Full coverage is particularly beneficial for drivers with newer or higher-value vehicles, and lenders typically require it for anyone who has a car loan or lease.

Drivers can find the cheapest full-coverage insurance with State Farm, with rates of $119 per month.

To help you find affordable coverage in Philadelphia, here’s a table showing companies with the lowest average rates for full coverage.

Car insurance requirements in Pennsylvania

All Pennsylvania drivers must have car insurance to show financial responsibility in case of an accident. Pennsylvania is a no-fault state, meaning a driver’s insurance pays for their own damages and injuries, regardless of who was at fault in an accident. However, the state has a unique version of no-fault car insurance.

In Pennsylvania, policyholders have two options: limited-tort coverage or full-tort coverage. Purchasing limited-tort coverage limits your right to receive financial compensation for injuries and other losses when another driver causes the accident.

You’ll pay a higher average annual rate for full-tort coverage, but buying this kind of policy essentially means opting out of the no-fault system. It gives you unlimited rights to financial compensation for injuries and other losses when another driver causes the accident.4

If you want more than the minimum insurance requirements in Pennsylvania, consider the following coverages:

Cheapest car insurance for drivers with an incident

In auto insurance, an incident refers to an event that negatively affects your driving record, such as an at-fault accident, speeding ticket, driving under the influence (DUI), or other moving violation.

Insurance companies view drivers with incidents on their record as high-risk, so they increase their car insurance rates.

Cheapest car insurance for drivers with a speeding ticket: State Farm

Getting a speeding ticket indicates risky driving behavior to car insurance companies, which usually leads to more claims. Each speeding ticket can lead to a rise in premiums when your policy renews.

The cheapest car insurance for Philadelphia drivers with a speeding ticket is $164 per month, from State Farm.

The table below shows the companies with the best rates for drivers with one speeding ticket on their record and how the rates offered to these drivers compare to those offered to drivers with a clean record.

Cheapest car insurance for drivers with an at-fault accident: State Farm

Causing an accident signals to insurance companies that you have a higher likelihood of being involved in future accidents or filing other claims. After an at-fault accident, your insurance company may raise your rates or cancel your policy when it comes up for renewal.

The cheapest car insurance you’ll find in Philadelphia with an accident is from State Farm, with liability rates of $155 per month.

The table below shows the cheapest Philly insurance companies for drivers with one at-fault accident on their record and how those rates compare to rates for drivers with a clean record.

Cheapest car insurance for drivers with a DUI: National General

A DUI is one of the most serious incidents that can affect your car insurance rates. It signals a significant risk to insurers, as it suggests you’re more likely to engage in risky behavior behind the wheel and be involved in costly accidents.

The cheapest car insurance you’ll find in Philadelphia with a DUI is $184 per month, from National General.

To illustrate the effect of a DUI on car insurance rates in Philadelphia, here’s a comparison table showing the average rates for drivers with a DUI versus drivers with clean records.

Cheapest car insurance for seniors: State Farm

Your age can have a big effect on your car insurance rates. While teens and young adults pay high premiums, rates tend to decrease around age 35 as drivers gain experience and pose a lower risk of accidents. However, this trend reverses as drivers reach around age 70 due to the higher risk of accidents associated with aging, such as slower reflexes and deteriorating vision.

The cheapest insurer for senior drivers in Philadelphia is State Farm, with a cost of $104 per month.

To help senior drivers in Philadelphia find the most budget-friendly insurance, here’s a table showing the insurance companies offering the cheapest average rates for both liability only and full coverage.

Cheapest car insurance for teens: National General

Car insurance rates for teen drivers are typically higher than those for adults, primarily due to young drivers’ lack of driving experience and higher risk of accidents.

The cheapest insurer for teen drivers in Philadelphia is National General, with a monthly rate of $251.

Despite their increased risk profile, teens and their families have plenty of ways to find more affordable car insurance. For example, it can be more cost-effective to keep teens on their parent’s insurance policy rather than having a separate policy.

Here’s a table showing the insurance companies offering lower rates for teen drivers in Philadelphia.

Philadelphia car insurance quotes by credit tier

In Pennsylvania, insurance companies are allowed to consider credit scores when setting car insurance rates. This practice is based on the correlation between credit scores and the likelihood of filing claims.3 Generally, drivers with good or excellent credit pay the lowest rates, while drivers with poor credit pay higher rates.

The chart below shows how credit affects car insurance rates in Philadelphia.

Is car insurance more expensive in Philadelphia?

Yes. Car insurance in Philadelphia tends to be more expensive compared to the national average and to other cities in Pennsylvania.

Philadelphia’s average monthly cost is $233, compared to $126 in all of Pennsylvania and $144 nationally. This disparity is due to various factors, including the city’s dense urban environment, higher rates of traffic accidents, theft, and vandalism, as well as the overall cost of living.

More cities in Pennsylvania

In Pennsylvania’s second-largest city, Pittsburgh, average car insurance rates are lower than in Philadelphia.5 This difference may be due to Pittsburgh’s smaller population and less congested roads.

The table below shows the average rates for liability-only and full-coverage car insurance coverage in other Pennsylvania cities.