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Pennsylvania’s auto insurance costs rise of 25.7% between 1989 and 2010, 6th best performance in the country

Pennsylvania is one of only 12 states where auto insurance costs went up by less than the countrywide average between 1989 and 2010, as per a November 2013 study released by the Consumer Federation of America. While the countrywide expenditure on auto insurance went up by 43.3 percent, on average, during this time period, costs in Pennsylvania went up by 25.7 percent. In dollar terms, the statewide average went up from $646.03 in 1989 to $812.15 in 2010, on average. As of 2010 it was still dearer to buy auto insurance in Pennsylvania compared to the countrywide average of $791.22. However, the gap is closing.

The study found that states that implemented stringent auto insurance regulation had the most success in keeping costs for rising fast. For instance, the Prior Approval (PA) system has been credited by the study as having a significant impact on keeping premium rates low. The PA system, which is in place in Pennsylvania and a few other states, requires insurers to file rates changes with the state and await approval before they can be implemented in the marketplace. The PA system has helped Pennsylvania go from being ranked the 10th most expensive state (in 1989) in terms of auto insurance expenditure to occupying the 17th rank in 2010.

One of the more interesting findings of the study is that stringent regulation did not adversely affect profitability of insurers. The profitability in states that employed stringent regulation was equal or better than states with regulation that was lax. Moreover, regulated states showed approximately the same profitability as states that are deregulated altogether.

Pennsylvania’s auto insurance regulation has benefitted consumers in the state by reducing their auto insurance expenditure. Moreover, it has done so without affecting the profitability of insurers in the state. In fact, a rise of only 25.7 percent in insurance costs over the 21 years ending 2010 is the 6th best performance in the entire country.

Insuring your car after an accident in Pennsylvania

Auto insurance does not come cheap in the state of Pennsylvania. With an average annual auto insurance rate of $1604, Pennsylvania is the 15th most expensive state to buy auto insurance.  It is mandatory to have both liability insurance as well as no-fault insurance in this state. The minimum no-fault coverage limit is $5,000, and minimum liability coverage limit is $15,000 per person, per accident for bodily injuries and $5,000 for property damage.

You need to furnish documents proving that you have the required insurance coverage, and if you are caught driving without this proof you could face a minimum fine of $300, and 3 month suspension of your driver’s license and registration. If your car’s registration gets suspended, it becomes practically useless, since no one else can legally drive it either.

Auto insurance rates vary between $978 and $2199 in Pennsylvania. The average insurance rates in the cities of Pennsylvania have been listed below –

City Zip code Average Annual Premium($)
Harrisburg 17110 978
Lancaster 17603 996
Altoona 16602 1,038
Bethlehem 18018 1,113
Erie 16501 1,136
Pittsburgh 15219 1,148
Scranton 18504 1,148
Reading 19601 1,287
Philadelphia 19107 2,199

A single accident could increase the affordable $978 in Harrisburg to $1178 for a multi-car policy, and $1369 for a single-car policy. This is as per the Insurance Services Office’s (ISO) surcharge standard. In Philadelphia, the rates increase to $2639 and $3079 for multi-car and single-car policies, respectively.

In Altoona, an accident that caused major property damage or medical injuries could hike your rates to an amount between $1557 and $2076.

Insurance companies look up your driving record when you are buying a new insurance policy, and an accident in the past three years on your record could increase your premium up to an amount between $1298 and $1557 in Altoona. One accident in Pittsburgh could increase your premium to $1414 and the second one could cost you up to $2109.

One way to reduce your premium is to have a defensive driving course. This could reduce your premium by around 15%. Also, it could help you drive better in hazardous weather conditions.

Pennsylvania Auto Insurance Rates

Below are the minimum, average and maximum insurance rate estimates for neighbourhoods in and around Pennsylvania, PA.

Lowest Rate:$900
Average Rate:$1600
Highest Rate:$3300

Recent Savings From Top Providers in Pennsylvania

Rank Customer Zipcode Amount Saved
1 16677 $325
2 15001 $318
3 15003 $316
4 15004 $314

Compare Auto Insurance Companies in Pennsylvania

Company A.M Best Rating on
Financial Strength
Year Founded
Progressive A+ 1937
State Farm A++ 1922
Allstate A+ 1931
GEICO A++ 1936
Nationwide A+ 1925
Liberty Mutual A 1912
Erie A+ 1925

Pennsylvania Auto Insurance Requirements

Minimum limits of liability for auto insurance in Pennsylvania as per PA State Laws

Bodily Injury Liability

  • $15,000 for death/injury of any one person, per accident.
  • $30,000 for all persons per accident.

Property Damage Liability

  • $5,000 per accident.

Pennsylvania Car Insurance Average Rates by Make

In addition to the location, one key factor that contributes to the insurance rates in Pennsylvania is the vehicle's make and model. Especially the vehicle's theft rates in Pennsylvania

MakeInsurance Average PremiumView Details
MakeInsurance Average PremiumView Details

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Latest Auto Insurance Reviews in Pennsylvania


$65 for 1 Month

My driving record is clean, and I am insuring a Kia Optima. I am a single male, approximately 30 years old. I drive daily to work, about 10 miles round trip. I have comprehensive coverage and I chose this coverage because I want to ensure that I do not have to pay out of pocket for any damage to my own car. I chose my current insurance company because the price was significantly lower than other quotes I received for similar coverage. I have had no negative experiences with this provided. When I purchased my car, I switched from State Farm because they were much more expensive. I do not have any other services provided through my current company.

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