What Auto Insurance is Cheapest for Young Drivers in Philadelphia?

The vehicle you are trying to insure is one of the primary factors when comparing low-priced coverage for young drivers. Vehicles with economical engines, a plethora of safety features, or a low likelihood of liability claims will cost quite a bit less to insure than high performance models.

The next list shows auto insurance rates for some of the most affordable automobiles to insure.

Cheapest Vehicles to Insure in Philadelphia, PA
Vehicle Insured Estimated Cost for Full Coverage
Hyundai Elantra GLS Touring Station Wagon $18,028
Honda CR-V EX 4WD $18,201
Ford Escape XLT 4WD $18,209
Toyota Prius $19,479
Dodge Grand Caravan Hero $21,379
Toyota Camry LE $21,386
Toyota RAV4 Limited 4WD $21,379
Chevrolet Impala LT $21,385
Jeep Grand Cherokee Laredo 2WD $21,379
Chevrolet Malibu Hybrid $21,387
Ford F-150 Lariat Crew Cab 4WD $21,552
Ford Explorer Eddie Bauer AWD $21,558
Toyota Tacoma Double Cab TRD Off-Road Package 4WD $21,552
Ford Focus SES 4-Dr Sedan $22,307
Jeep Wrangler Unlimited Sport 2WD 4-Dr $22,462
Ford Edge Sport 2WD $22,480
Nissan Altima 2.5 S 4-Dr Sedan $22,489
Volkswagen Jetta 2.0T 4-Dr Sedan $22,653
GMC Sierra 2500HD SLE Crew Cab 4WD $22,660
Honda Odyssey Touring $22,653
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Data based on single male driver age 16, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Pennsylvania minimum liability limits. Discounts applied include safe-driver, and claim-free. Prices do not factor in specific location information which can alter price quotes noticeably.

Based on these rates, you can infer that cars like the Hyundai Elantra, Honda CR-V, Ford Escape, and Toyota Prius should be the most budget-friendly vehicles to insure for youthful drivers. Rates will tend to be more expensive just due to the fact that there is more risk for young drivers, but in general those vehicles will tend to have the lowest insurance rates compared to other types of vehicles.

One of the many criteria that determine car insurance rates is where you choose to live. Cities with larger populations tend to have more expensive auto insurance rates, whereas areas with less congestion benefit from lower rates.

The following table ranks the most expensive cities in Pennsylvania for young drivers to purchase a policy in. Philadelphia is ranked #1 with an annual cost of $2,037 for the average insurance policy, which is approximately $170 per month.

How much is car insurance in Philadelphia?
Rank City Annual Premium
1 Philadelphia $2,037
2 Drexel Hill $1,534
3 Levittown $1,407
4 Chester $1,393
5 Norristown $1,281
6 Allentown $1,141
7 Pittsburgh $1,095
8 Hazleton $1,088
9 Erie $1,082
10 Scranton $1,071
11 Reading $1,066
12 Easton $1,058
13 Plum $1,057
14 Municipality of Monr $1,049
15 Wilkes-Barre $1,047
16 New Castle $1,046
17 Bethlehem $1,045
18 Altoona $1,042
19 Bethel Park $1,019
20 Harrisburg $1,015
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Rate quotes are approximated as the vehicle garaging location can alter insurance rates significantly.

Liability-only versus full coverage

Reducing the cost of auto insurance should be important to most vehicle owners, and one of the fastest ways to find cheaper insurance for young drivers is to not buy full coverage. The information below compares premium costs with liability coverage only compared to full coverage. The premiums are based on no claims or violations, $1,000 deductibles, drivers are not married, and no discounts are applied.

If we average the cost for all age groups, full coverage on your policy costs $1,844 per year over and above liability coverage. Many of you may wonder if full coverage is worth the money. There is no set guideline for excluding comp and collision coverage, but there is a general convention. If the annual cost of comprehensive and collision coverage is about 10% or more of any settlement you would receive from your insurance company, then you may want to consider only buying liability coverage.

For example, let’s assume your vehicle’s claim settlement value is $11,000 and you have $1,000 deductibles. If your vehicle is damaged in an accident, the most your company would pay you is $10,000 after paying the physical damage deductible. If you are paying over $1,000 annually for full coverage, then it’s probably a good time to buy liability coverage only.

There are some conditions where dropping physical damage coverage is not recommended. If you haven’t satisfied your loan, you have to carry full coverage in order to keep the loan. Also, if your emergency fund is not enough to purchase a different vehicle if your current one is totaled, you should not buy liability only.

Choosing the right car insurance provider can be rather challenging considering how many choices there are in Philadelphia. The company information listed below may help you analyze which car insurance companies to look at putting your business with. The ratings below are for the companies with a significant amount of written premium nationwide, so smaller companies are not factored into these rankings.

Best Ten Auto Insurance Companies for Young Drivers in Philadelphia
Company Value Customer Service Claims Customer Satisfaction A.M Best Rating Overall Score
The General 96 100 92 91% A- 95
Titan Insurance 87 96 94 93% A+ 92.9
The Hartford 88 96 91 93% A+ 92.6
Progressive 84 94 99 90% A+ 92.4
Travelers 84 93 100 87% A++ 92.3
State Farm 84 93 95 87% A++ 91
Farmers Insurance 87 92 90 85% A 90.6
Erie Insurance 79 93 90 87% A+ 88.6
Safeco Insurance 85 91 87 86% A 88.4
USAA 71 93 98 87% A++ 88
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Data Source: Insure.com Best Car Insurance Companies

The illustration below illustrates how choosing a deductible can increase or decrease premium costs when trying to find cheap insurance for young drivers. The premiums are based on a single female driver, comp and collision included, and no policy discounts are applied.

The chart above illustrates that a 50-year-old driver could lower their car insurance rates by $260 a year by increasing from a $100 deductible to a $500 deductible, or save $394 by selecting a $1,000 deductible. Even younger insureds, like the 20-year-old, can save $662 annually by choosing a larger deductible amount. When raising deductibles, it will be required to have additional funds in a savings account to be able to cover the extra out-of-pocket expense, which deters some people from using high deductibles.

Tips to find economical car insurance for young drivers

Here are some thrifty suggestions that can help drivers get cheaper car insurance.

The last tip in the list is remarkably important, as was discussed in the prior information. Rates in Philadelphia can be adjusted at any time, so don’t be tentative to buy from a different company if a more affordable rate is found.

Loyalty to a specific company is fine, but we do not recommend it if that loyalty ends up costing hundreds of dollars a year. In just a couple of minutes you could shop around and find cheaper insurance for young drivers.

If you aren’t sure which coverage you need and prefer to get some professional advice when shopping around for cheaper insurance for young drivers, the agencies below are willing to aid you in deciding which insurance coverage you need. To locate a Philadelphia insurance agent in your neighborhood, click the button after the list.

Mike Hickey – State Farm Insurance Agent
86 Bethlehem PikePhiladelphia, PA 19118(215) 753-1501

John Nicolucci – State Farm Insurance Agent
6001 Ridge AvePhiladelphia, PA 19128(215) 482-7000

Jerry Gregory – State Farm Insurance Agent
2999 Welsh RdPhiladelphia, PA 19152(215) 338-3313

Jeff Gottesman – State Farm Insurance Agent
9551 Bustleton AvePhiladelphia, PA 19115(215) 725-1000

Terra Insurance Services
1879 Cottman AvePhiladelphia, PA 19111(215) 742-3743

Find a Philadelphia, PA insurance agent near you