The Best Cheap Car Insurance Companies in Pennsylvania

Suppose you're a Pennsylvania driver looking for cheap car insurance. In that case, we have great news for you right out of the gate: Pennsylvania drivers already pay less than the national average for their car insurance.

The average yearly premium in Pennsylvania is $1,266, which is 17%, or $263 a year, cheaper than the national average. But what if you're looking for rates that are even cheaper than that? There's good news there, too — your premiums can get lower still, and this article will help you find out how. 

Average Auto Insurance Rates in Pennsylvania 

First, some vital numbers about Pennsylvania car insurance from Kristine Lee at The Zebra: 

The state minimum coverage for auto insurance in Pennsylvania is $15,000 per person for bodily injury, $30,000 per accident for bodily injury, and $5,000 for property damage. Pennsylvania also requires a first-party benefit (also known as a PIP) of $5,000 per accident. 

Further, Pennsylvania insurance law requires you to pick between limited tort, which restricts your ability to sue other drivers for non-monetary damage such as pain and suffering, and full tort, which tends to cost more but allows you to sue for any post-accident pain and suffering damages. 

The rates above are for liability-only coverage, and if you want more complete coverage for your automobile, your rates will vary by the carrier — but in every case, they'll be higher. Full coverage with a $1,000 deductible will cost you $175% more than liability-only on average. If you lower your deductible to $500, you'll pay 231% more than you would for liability only. 

Top Three Auto Insurance Companies in Pennsylvania 

If you want to roll with one of the top-rated auto insurance companies in the state, here are the highest-ranking companies according to JD Power and Associates: 

  • USAA, which has some of the highest marks in The Zebra's Customer Satisfaction Survey, and a score of 896 / 1,000 from JD Power as of 2021. 
  • NJM, a regional carrier operating in Pennsylvania and environs, with an 867 / 1000 from JD Power. 
  • Erie, which scored an 856, just behind NJM. 

The Best Cheap Pennsylvania Car Insurance Companies 

For drivers unfortunate enough to have an at-fault accident or DUI on their record, a massive hike in premiums is unavoidable, but that doesn't mean you don't have some options. Shopping around for quotes from different insurance companies can help you find a more affordable rate. For example, Travelers is generally the least expensive in Pennsylvania if you have a DUI or at-fault accident, and Nationwide is the best for policyholders with bad credit. 

Things can be even tougher for teen drivers in Pennsylvania. Already, teens and adults under 20 pay the highest premiums of any demographic when it comes to car insurance. In Pennsylvania, their rates tend to be even higher: the average annual premium for a teen driver in the state is $4,293 — and can range up to $13,000 depending on which carrier you go with! This is one of those cases where it's definitely important to shop around and compare rates so you don't end up paying way more than you need to for auto insurance. 

Why are premiums for teen drivers so high? The same reason they're higher for drivers with DUIs and accident records — statistically speaking, they're at greater risk for accidents. Reckless driving among teens has been a problem since time immemorial, and drivers with DUI convictions have proven they're more inclined toward risky behavior — leading to higher premiums. 

How Pennsylvania Drivers Can Keep Their Premiums Low 

Now let's talk a little about what you can do to keep your car insurance premiums low overall. 

First and foremost, even though we've mentioned it before: shop around and compare rates! You could very likely get a better deal with a different company. As the numbers above regarding teen drivers show, yearly premiums can vary wildly from one carrier to the next. 

Second, consider looking into discounts. There are plenty of opportunities to shave a little off your insurance premium. Carriers have discounts available for good students, members of certain professions (like teachers and health care workers), low mileage, or installing safety and anti-theft devices on your vehicle. 

You can also get a discount by taking a defensive driving course or switching to a hybrid car or one with a better safety rating than the one you're driving now. If you're a homeowner, you can bundle your car and home insurance together to get a discount. 

Finally, although it's easier said than done, you can sometimes get a better insurance premium by improving your credit rating. A better credit rating can open up all kinds of financial opportunities, and a more favorable annual premium on your auto insurance is one of them. 

 


Michael launched Wealth of Geeks to make personal finance fun. He has worked in personal finance for over 20 years, helping families reduce taxes, increase their income, and save for retirement. Michael is passionate about personal finance, side hustles, and all things geeky.