Top Five Ways to Save Money on on Auto Insurance in Philadelphia

Top Five Ways to Save Money on on Auto Insurance in Philadelphia

Paying for high-priced auto insurance can leave holes in your wallet and put a big crunch on your finances. Comparing price quotes is free and is an excellent way to tighten up your finances.

Because there are so many companies to choose from, it can be impossible to choose the cheapest insurance company.

Free Philadelphia Auto Insurance Quotes

There are multiple methods to compare auto insurance quotes, and some are less time-consuming than others. You can spend countless hours discussing policy coverages with insurance agencies in Philadelphia, or you could use the web for quick rates.

Most car insurance companies take part in a program where insurance shoppers enter their policy data once, and every company then returns a price quote determined by their information. This eliminates the need for multiple quote forms for each company.

To access this free quoting program, click here to start a free quote.

The only downside to getting quotes like this is you are unable to specify which carriers to receive prices from. If you wish to select from a list of companies to request quotes from, we have a listing of companies who write auto insurance in Pennsylvania. View list of Pennsylvania insurance companies.

Which method you use is up to you, but make darn sure you compare apples-to-apples coverage limits and deductibles for every quote you compare. If you compare higher or lower deductibles you can’t possibly determine the lowest rate in Philadelphia. Just a small difference in coverage limits can make a big difference in price. And when comparing auto insurance rates, know that obtaining a wide range of quotes gives you a better chance the best rates.

Learn How to Lower your Rates

Smart consumers have a good feel for some of the elements that play a part in calculating the rates you pay for auto insurance. When you know what positively or negatively determines base rates helps enable you to make changes that could result in much lower annual insurance costs.

Shown below are a partial list of the pieces that factor into premiums.

  • Never let your coverage lapse – Driving without insurance is against the law and you will pay a penalty because you let your coverage lapse. Not only will rates go up, but not being able to provide proof of insurance may earn you a steep fine or even jail time.You may then be required to prove you have insurance by filing a SR-22 with the Pennsylvania motor vehicle department.
  • Lower rates with optional equipment – Purchasing a vehicle with a theft deterrent system can help lower your rates. Theft prevention devices like vehicle immobilizer systems, General Motors OnStar and LoJack tracking systems all aid in stopping your car from being stolen.
  • Don’t buy coverages you don’t need – There are quite a few add-on coverages that you can get tricked into buying when buying auto insurance. Things like vanishing deductibles, accidental death and membership fees are examples of these. They may seem good initially, but your needs may have changed so remove them from your policy.
  • Do you know your deductibles? – Your deductibles represent how much money you are willing to pay out-of-pocket in the event of a claim. Physical damage insurance, commonly called comprehensive (or other-than-collision) and collision coverage, covers damage that occurs to your car. Some examples of claims that would be covered would be colliding with a building, damage from fire, or theft. The more the insured has to pay upfront, the bigger discount you will receive.
  • More than one policy can earn a discount – Some companies will award you with lower prices to insureds who have multiple policies with them, otherwise known as a multi-policy discount. If you currently are using one company, it’s still a good idea to compare other company rates to confirm you are receiving the best rates possible.
  • Do you work long hours in a high stress job? – Occupations such as judges, architects and stock brokers are shown to have the highest rates due to job stress and long work days. On the other hand, occupations like pilots, students and retirees pay the least.
  • Is your vehicle built for speed? – The performance of the car you are insuring makes a huge difference in determining your rates. The lowest base rates are for lower performance four cylinder passenger vehicles, but the final cost of insurance is determined by many other factors.

Save money by taking advantage of these 5 discounts

Car insurance is not cheap, but you can get discounts to reduce the price significantly. Some discounts apply automatically at the time of purchase, but lesser-known reductions have to be specially asked for before being credited.

  • Pay Now and Pay Less – If you pay your bill all at once instead of monthly or quarterly installments you could save 5% or more.
  • Safety Course Discount – Successfully completing a defensive driving course could cut 5% off your bill if you qualify.
  • Auto/Home Discount – If you have multiple policies with one company you could get a discount of at least 10% off all policies.
  • Fewer Miles Equal More Savings – Low mileage vehicles could be rewarded with lower rates on the low mileage vehicles.
  • Use Seat Belts – Requiring all passengers to wear their seat belts can save 10% or more off your PIP or medical payments premium.

As a disclaimer on discounts, most of the big mark downs will not be given to the overall cost of the policy. Most cut specific coverage prices like comprehensive or collision. So when it seems like you would end up receiving a 100% discount, you’re out of luck. Any qualifying discounts will help reduce the amount you have to pay.

Compare rates from both independent and captive car insurance agents

When finding a reliable agent, there are two types of agencies that differ in how they insure your property. Insurance agencies in Philadelphia are categorized either independent (non-captive) or captive.

Independent Agents

Independent agents are not locked into one company so they can insure your vehicles with lots of companies and potentially find a lower price. If you are not satisfied with one company, your agent can switch companies without you having to go to a different agency.

When shopping rates, it’s a good idea to get quotes from at least one independent agent for the best price selection.

Listed below is a short list of independent insurance agents in Philadelphia who can help you get price quotes.

Ragen-Farrell Insurance – 1326 E Montgomery Ave – Philadelphia, PA 19125 – (215) 423-3680
Diamond Insurance Inc – 6745 Souder St – Philadelphia, PA 19149 – (215) 725-1846
Jorge Franco Agency – 6901 Castor Ave # B – Philadelphia, PA 19149 – (215) 725-5800
J A Mariano Agency Inc – – Philadelphia, PA 19102 – (215) 790-0779
Troast Singley Agency – 2700 S 18th St – Philadelphia, PA 19145 – (215) 339-0333

Agency Captives

Captive insurance agents write business for a single company like Allstate, State Farm and Farmers Insurance. They are unable to give you multiple price quotes so keep that in mind. Captives are trained well in insurance sales which helps them compete with independent agents.

Below are captive insurance agencies in Philadelphia willing to provide rate quotes.

Liberty Mutual Insurance – 111 S Independence Mall E – Philadelphia, PA 19106 – (215) 925-7915
Allstate Insurance – 15 W Highland Ave # D – Philadelphia, PA 19118 – (215) 242-6100
State Farm Insurance – 1529 S 2nd St – Philadelphia, PA 19147 – (215) 271-6030

To view a complete directory of captive insurance agencies in Philadelphia, visit this link.

Deciding on a car insurance agent shouldn’t rely on just the premium amount. Some important questions to ask are:

  • Who are their largest clients?
  • Do they carry Errors and Omissions coverage?
  • Who is covered by the car insurance policy?
  • Which insurance company do they recommend?
  • Do the coverages you’re quoting properly cover your vehicle?
  • Are glass claims handled on-site or do you have to take your vehicle to a repair shop?

After getting answers to your satisfaction to any questions you have and an affordable coverage quote, you have narrowed it down to an insurance agency that is a good match to adequately provide auto insurance.

When should I use an insurance agent?

When it comes to buying the right insurance coverage for your personal vehicles, there really is no “perfect” insurance plan. Your needs are not the same as everyone else’s and a cookie cutter policy won’t apply. For example, these questions can help discover whether or not your insurance needs might need professional guidance.

  • Why am I be forced to buy a membership to get insurance from some companies?
  • Should I rate my vehicle as pleasure use or commute?
  • Are rental cars covered under my policy?
  • When do I need to add a new car to my policy?
  • Do I pay less if my vehicle is kept in my garage?
  • Can I rate high risk drivers on liability-only vehicles?

If it’s difficult to answer those questions but you think they might apply to your situation then you might want to talk to a licensed agent. To find an agent in your area, simply complete this short form.

More effort can pay off

We’ve covered many ways to get a better price on auto insurance. It’s most important to understand that the more rate quotes you have, the better likelihood of reducing your rate. You may be surprised to find that the biggest savings come from the smaller companies. They often have lower prices on specific markets compared to the large companies like Allstate, GEICO and Progressive.

Cheap auto insurance can be found both online in addition to most Philadelphia insurance agents, and you should be comparing both in order to have the best prices to choose from. Local independent agents are able to place your coverage with small, regional companies who do not offer you the ability to get quotes online.