What Does Car Insurance Cost in PA?

what does car insurance cost in pa - hte kind insurance

We all have a general idea of car insurance pricing, but it’s much more complicated than that in reality. In most cases, if the insurance agency views you as a liability who’s likely to frequently make claims, then they’ll charge a higher premium. 

They have a system to estimate that probability and it is based on several factors. We’ll take a look at all of them in this article and in the end, we’ll show you how you can find the best possible car insurance rates in PA.

The System

You could say that the average annual cost of car insurance in PA is around $1,818, which is above the national average. But, many factors can change this number.

When determining insurance rates, car insurance carriers in Pennsylvania take into account a range of factors and data about the driver. Driving record, credit score, gender, age, car model, amount of coverage, and more are relevant variables. Given the size of Pennsylvania, every city’s rates will differ based on local factors.

By City

The cost of vehicle insurance varies by city in Pennsylvania. When determining rates by ZIP code, insurance firms consider factors including population size, data on criminal activity, the probability and seriousness of auto accidents, cost of living, and access to medical services. 

In most cases, car owners located in Scranton fall within the average price range for paying premiums while drivers in a city like Pittsburgh may have to pay anywhere from 3 to 7 percent more for car insurance.

By Age

Another element that affects the cost of car insurance in Pennsylvania is age. Although many states also take gender into account, state laws prevent Pennsylvania and some other states from doing so. Due to their immaturity, young drivers under 20 typically pay the highest premiums for car insurance. Usually, rates start to decline at age 25 and keep going down until about age 70, when they start to rise once more.

Credit Record

Your credit score can have an impact on insurance premiums. These scores are used to estimate the likelihood that a claim will be made. Insurance companies raise their premiums for drivers with lower FICO ratings since they are typically more probable to file claims. It’s because the rate of car insurance is determined based on risk. If you are viewed as a higher risk by the insurance company, you could be expecting to pay more for your insurance.

Pennsylvania law permits insurance companies to take policyholder credit ratings into account when calculating car insurance premiums, just like many other states do. Drivers with lower and mediocre credit are often considered by vehicle insurance as higher-risk consumers. At present, the average monthly cost for drivers in Pennsylvania with low or mediocre credit is $19 more than the cost for drivers with great credit.

Driving Record

Your car insurance rate is determined in part by how you use it. Your anticipated annual mileage, for instance, will let the insurance know how much damage the vehicle gets. Additionally, it will be important to consider your driving history, which includes any license penalties, suspensions, arrests, and prior insurance claims.

Although where you reside is crucial, it’s not the most vital factor for a car insurance company. There may be more claims in your neighborhood if there is a lot of crime nearby or if you live close to a busy intersection. Insurance companies consider this since, despite the fact that it has nothing to do with your own driving style, it may indicate a higher chance of theft or an accident.

Vehicle Model

Last but not least, the amount you are paying for car insurance in Pennsylvania depends largely on your vehicle’s model. Since every automobile type has various safety features, and accident stats, the insurance premium differs in every model. For instance, Ford and Honda drivers usually get rates that are below average while BMW owners have to pay rates above average.

The Minimum Coverage Required in Pennsylvania

You probably already know that the minimum limits for car insurance policies are different in every state. That applies to Pennsylvania as well. Here are several policies you must have as a car owner/driver in this state:

  • Medical payments coverage: This is useful for covering the medical expenses you or a passenger incurs at the time of accident. The minimum amount in Pennsylvania is $5,000.
  • Bodily injury coverage: If the driver injures a passenger in a car crash, having this type of policy can help cover their medical costs. Remember that in most cases, this type of coverage is exclusive to the passengers and it must be at least $15,000 per individual.
  • Property damage: If the driver is involved in an accident that causes damage to a property, this can help cover the expenses. Similar to the first item, it must be at least $5,000 for every accident.

As one of the “no-fault” states in the U.S., Pennsylvania insurance agencies are required to cover all medical bills associated with a car crash, no matter who is at fault. Either driver has the right to file a claim against the other party, but they can only do that if the injuries and damages are beyond Pennsylvania’s official threshold. That’s one reason for having a minimum of $5,000 in medical payments coverage.

However, Pennsylvania is different from other no-fault areas in one aspect: Car owners/drivers can decide not to have the no-fault plan when buying a vehicle or shopping for car insurance.

How to Save Money When Buying Car Insurance

While Pennsylvania offers some of the better car insurance plans in the country, there are still several tools and techniques to drop the premium even lower. You need to do several things:

  1. Carefully study different options. Before you decide to purchase car insurance, it’s best to see what they offer, how they compare against other options, and if the policies are worth the money you pay.
  2. Increase the deductible. In other words, if you initially pay more out of pocket, you don’t have to pay higher premiums in the long run. So, if you can, try to pay a larger sum in the beginning.
  3. Opt for the minimum. If you can’t afford a full coverage policy, you can always check the minimum state requirements and get that from an insurance company.
  4. Get a discount. If you have the requirements, find a reliable insurance agency that offers a discount for drivers with positive driving habits.

Bottom Line

Understanding these different factors will give you some insight into how you can lower your rates even more.

As said before, you need to shop around and find a reliable car insurance provider with comprehensive policies and competitive rates. Fortunately, that’s exactly what we offer at The Kind Insurance. We offer a wide range of personal and business insurance policies to guarantee your safety and comfort. Get in touch with us today to learn more about our insurance programs!

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