5 Factors that Play into Philadelphia Car Insurance Rates

Philadelphia Car Insurance

Philadelphia Car Insurance is one of those things that you know you need but don’t want to pay for. Given the high price tags associated with premiums, it can be frustrating to feel like you’re spending a lot of money for something you may never use.

Philadelphia is one of the largest cities in the United States — and that can lead to higher car insurance rates. While Pennsylvania is a no-fault state, liability insurance is a must when you’re driving somewhere as populated as Philly.

Because of its high population, Philadelphia sees a higher number of car accidents than some other municipalities, leading to higher insurance rates. Of course, these are only some of the factors that play into your car insurance rate. 

The good news is you can get more bang for your buck when it comes to your Philadelphia car insurance policy by understanding what factors into a premium and how you can control them.

1. Your Driving Record

Your driving record has a significant impact on your rates. The more tickets and accidents you have on your record, the higher your car insurance rates will be. Even minor infractions can play a role when determining your premium. 

Most auto insurance companies will only look back 3-5 years when calculating premiums, so keeping a clean record for at least this long should help you get better rates.

2. Credit Score

Auto insurers increasingly rely on credit scores to determine risk levels and set premiums. Drivers with poor credit pay higher rates than those with good credit. To save on car insurance, focus on improving your credit score by paying bills on time, not carrying balances on your credit cards, and reducing debt overall.

3. The Age of the Driver

Your age is a significant factor in how much your car insurance rates will be. The younger you are, the more expensive your insurance will be. On the other hand, older drivers often pay less for car insurance.

This is because younger and older drivers have higher rates of accidents than middle-aged drivers. Younger drivers get into more accidents because they are inexperienced and many are not experienced enough to drive safely. 

On the other hand, older drivers tend to have slower reaction times and could end up with a higher risk on the roadways as well.

4. Amount Paid as Deductibles

In an insurance policy, a deductible is an amount you must pay out-of-pocket before your insurance company takes over the rest of the cost for a covered loss. Your premiums will decrease with a higher deductible but bear in mind that you will have to pay more out-of-pocket if you do file a claim.

5. Type of Car 

The type of car can factor into their insurance because some vehicles are more expensive to insure than others. Insurance companies consider the following when determining their premium costs:

  • The value of the car
  • The safety rating of the vehicle
  • How easily the car can be stolen or damaged

The Bottom Line

While no single factor will affect your rate more than another, it’s still important to be aware of the factors that go into determining your car insurance quote and how they may play into your unique situation.


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