Why is Car Insurance So Expensive in Philadelphia
We already know the importance of having car insurance, right? But still, people avoid taking insurance as they believe that the cost of the insurance policy is relatively high and not affordable for them. So, here we will discuss one such place, Philadelphia, which is also considered one of the most expensive car insurance providers compared to many other countries.
We also shared with you why car insurance is so expensive in Philadelphia, how to save the cost, and more. So, read the entire article carefully and mark all the ways to lower your price quickly.
Average Car Insurance Cost in Philadelphia:
Every state’s average insurance cost varies based on several factors, including your chosen company.
Now, if we talk about the average car insurance cost that most people have to pay in Philadelphia for insurance is $2647 each year, which is much more expensive than that of Pennsylvania, whose average cost is $1475 per year.
Why is Car Insurance So Expensive in Philadelphia
The cost of an insurance policy highly relies on different factors, such as the number of accidents and risks, cases of theft, driving history, and more. Specifically, if we talk about Philadelphia, where the rate of theft and damages is high, then that will directly impact one’s insurance rates.
Now, let’s do a pretty deep discussion to know more about why your car insurance policy is more expensive in Philadelphia than elsewhere.
- Age:
Age is one of the most significant factors you need to pay an expensive insurance rate in Philadelphia. If you are a 16-year-old driver, you must pay an average car insurance of $4362, as the risk is comparatively higher at this age than for experienced drivers.
But, once you reach your 20s, the insurance rate will automatically decline.
- Driving Records:
Driving records highly impact the rate of insurance premiums now; suppose you are not obeying the traffic rules, have a speeding ticket, or cause an accident then this may dull your driving personality, and so the provider will take a higher premium charge from you by considering your future risks.
Here, we share a list of average costs that Philadelphia drivers pay if they are at fault in the accident or more.
- At-fault accident with damage of less than $1000: $2887 per year
- At-fault accident and cause damage of more than $2000: $4115 per year
- For Careless Driving: $3861 per year
- DUI: $3684 per year
- Overspeed Driving: $2929 per year
- Population Density:
Philadelphia is considered one of the most densely populated cities, which means that the ratio of high traffic in Philadelphia is more than that of other cities in Pennsylvania.
So, as the number of vehicles on the road increases, the same is why the chance of road accidents also increases, and thus the car insurance, too.
- Chances of Theft a Car:
In places like Philadelphia, the chances of car theft and vandalism are higher compared to other areas; thus, the provider charges extra premium amounts from its policyholders to balance the cost.
- No-fault State:
Pennsylvania includes a no-fault state list, which means here, the drivers individually need to purchase their own PIP, that is, Personal Injury Protection coverage, which might be a reason for increasing the insurance rates.
- Uninsured Drivers:
As we already discussed above, the rate of Philadelphia car insurance policy is far higher than in other states, which is why not everyone can afford the rate of insurance coverage.
But here, the thing is, drivers who drive a car without any insurance coverage are liable to the insurance firm if they are involved in an accident and need to pay a considerable amount from their pocket even if they are not at fault.
- Weather Conditions:
Storms and floods are prevalent weather conditions in Philadelphia, which cause high road accidents; the cases of damaging others’ property also increase in such situations. Thus, we can also consider this factor, too.
- Credit Score:
If you have a good credit score, you do not need to pay any extra charges; if not, try to improve your credit score. In Philadelphia, drivers who successfully improve their credit score from very poor to exceptional automatically reduced the cost of credit score by 61%.
Conversely, improving your credit tires from an inferior level to a fair one can save up to $2066 annually on your insurance policy.
How do you lower the car insurance rate in Philadelphia?
After discussing a significant factor in increasing the car insurance rate, it is time to learn how to get a lower-rate car insurance policy in Philadelphia.
- Increasing the deductible amount is the best way to lower your premium rates.
- Maintaining a good driving score is an easy way to lower your insurance rates because if you have an excellent driving rating, your provider knows you drive a vehicle safely. Thus, they will offer reasonable discount rates too.
- While paying the insurance premium, the provider offers you two methods: the first one is to pay all the amounts together or else pay every six months. So, if you prefer to pay the entire amount in a single payment, you will get a good discount.
- Whenever you buy any car insurance policy, you first need to compare the rates of at least a few insurance companies and then finalize the one that offers all the coverage you need at the lowest price.
In addition to all the above points, there are a few more ways to lower the price of car insurance in Philadelphia quickly.
Final Words:
Now, we hope that after reading the entire article, you come to know the reasons why the cost of car insurance in Philadelphia is so much more expensive compared to other states; not only that, but here we have also shared with you a few quick and easy ways using which you can quickly reduce the cost of your insurance policy.
So, guys, what are you waiting for? Go and purchase the best insurance policy from Philadelphia in your budget by following the above-given reduction ways.