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Best 5 Car Insurance Companies in Pennsylvania 2021
Looking at several quotes for Pennsylvania’s minimum required coverage, it’s clear that prices vary by over $1,200 per year. No two drivers are exactly alike, so your risk factors are going to be completely different from another person’s risk profile. It’s impossible to predict what your rates would be.
Each insurance company has a unique formula that analyzes your personal information to determine your rate. In addition, each insurer weighs your information a little differently. That’s why the answer is always: Get quotes, get quotes, get quotes. The prices you’re quoted can vary significantly from company to company, even though your risk factors will be the same.
Our Top 5 Picks for the Best Cheap Car Insurance in Pennsylvania
Each of these companies has earned “excellent” or “superior” financial solvency ratings from A.M. Best, a top financial strength reporting agency that assesses a company’s long-term stability. These insurers also received high customer satisfaction scores in the latest J.D. Power report on the car insurance industry. That means you can trust them to pay out when they need to and to minimize the headaches involved in filing a claim.
Pennsylvania’s Minimum Coverage Requirements for 2021
Pennsylvania’s required liability coverage is far below the national average. Most states require $25,000 of bodily injury coverage per person and $50,000 per accident, but Pennsylvania residents must have only $15,000 of coverage per person and $30,000 per accident. The $5,000 of mandated property damage coverage is also about half of what most states require.
Pennsylvania also requires $5,000 of first-party benefits coverage. This covers medical expenses for you and others on your policy following an accident, regardless of whether you are at fault.
Pennsylvania, a no-fault insurance state, lets consumers choose whether they want a no-fault or tort policy. If you’re looking to lower your rates, consider going with a limited tort (no-fault) policy. This option enables you to sue for things like medical bills or loss of income, but you give up your right to sue for pain and suffering unless you incur an injury resulting in permanent disfigurement, impairment or death. A full-tort policy enables you to retain the right to sue for pain and suffering; however, this extra coverage can raise premiums by up to 40 percent. Even if you don’t own a car but drive frequently, non-owner car insurance can protect you if you are in an accident.
Sometimes You Need to Look for Different Quotes
You may not know it, but the price you’re quoted is a reflection not only of your risk, but of your loyalty. And perversely, the more loyal you are to your insurer, the more that company may raise your car insurance rate. This is a strategy called price optimization. The insurance companies’ algorithms analyze personal data, like your credit score and online shopping habits, to determine how likely you are to stay loyal to them. If they don’t expect you to shop around for another insurer, they’ll tack on a few extra dollars to your monthly bill.
In the same way that insurance companies find out your personal information, they also discover if you’ve applied for a quote from a competitor. If you’re an avid shopper, they’ll take note and probably won’t risk offending you with a slight bump in your rate. In fact, they might even offer you a more competitive one in order to keep your business. No business survives without revenue, and providers would much rather have you as a lower-profit customer than lose your business.
Luckily, Pennsylvania is one of 15 states that have taken steps to prevent price optimization. In a response to urging from the Consumer Federation of America, the state set some standards, effectively banning all insurers who operate in Pennsylvania from raising premiums for reasons not related to risk level.
All that’s to say that shopping around is the way to go. It helps you identify what kind of situation you’re in. Could you be paying less for the same coverage somewhere else and get better customer service? Could you find upgraded coverage that’s actually less expensive than what you’re paying now? Even though price optimization is no longer legal, if you’ve been with your current carrier for a few years, you may still be paying slightly higher, optimized rates. You definitely won’t know until you buckle down and get the quotes. We also reviewed the cheapest car insurance carriers in the U.S.
This is especially true if you are a new driver or a driver with bad credit. New drivers, whether they are recently licensed teenagers or adults just starting to drive, often face higher-than-normal insurance rates. The lack of driving experience makes these individuals riskier to insure, and so their premiums are higher.
Drivers with bad credit, normally defined as credit scores below 670, also face higher insurance premiums because these drivers are more likely to file expensive claims. The type of vehicle you’re driving, your geographical area and the kind of insurance you need could help you save some money on your premium. Good drivers can have good or bad credit, but being a good driver can help you qualify for some discounts.