Wouldn’t it be great if we knew the one best company that has the lowest rates for drivers under 25? It’s just not that simple, as there are a whole bunch of unknown elements such as the amount of liability insurance you need, whether you are male or female, and your date of birth. The content below covers the best ways to save money and also should give you a jump start in finding the best auto insurance in Pennsylvania.
For drivers age 25 and younger, one of the largest factors that are looked at to determine the amount you pay for auto insurance is where you normally keep your vehicle in Pittsburgh. Areas with more people or higher crime rates tend to have more expensive car insurance rates, whereas areas with less crime or weather claims have the gratification of cheaper auto insurance rates.
The information below lists the highest-priced areas in Pennsylvania for drivers under 25 to purchase a policy in. Pittsburgh shows up at #16 with the annual price of $1,053 for the average insurance policy, which is around $88 per month.
| Rank | City | Annual Premium |
|---|---|---|
| 1 | Philadelphia | $2,037 |
| 2 | Drexel Hill | $1,504 |
| 3 | Levittown | $1,421 |
| 4 | Chester | $1,379 |
| 5 | Norristown | $1,320 |
| 6 | Allentown | $1,141 |
| 7 | Easton | $1,091 |
| 8 | Bethlehem | $1,087 |
| 9 | Erie | $1,082 |
| 10 | Wilkes-Barre | $1,079 |
| 11 | Reading | $1,077 |
| 12 | Municipality of Monr | $1,059 |
| 13 | New Castle | $1,057 |
| 14 | Plum | $1,057 |
| 15 | Hazleton | $1,056 |
| 16 | Pittsburgh | $1,053 |
| 17 | Scranton | $1,049 |
| 18 | Altoona | $1,012 |
| 19 | Lancaster | $995 |
| 20 | Bethel Park | $989 |
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Premium amounts are comparative as specific Pittsburgh zip code can impact auto insurance rates considerably.
Figuring out which companies quote the cheapest insurance rates for drivers under 25 takes a little more effort than just picking a company at random.
Each insurer has their own guidelines for determining rates, so we will examine the insurance companies with the most affordable rates in Pittsburgh, PA. We do need to point out that Pittsburgh, PA insurance rates are determined by lots of factors which can significantly increase or decrease the cost of coverage. Simply having another birthday, buying a different home, or getting into an accident can trigger price changes that can now make some companies cheaper in comparison to the competition.
Cheapest Insurance Rates for Young Drivers
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| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | General Casualty | $718 |
| 2 | Travelers | $779 |
| 3 | Penn National | $816 |
| 4 | USAA | $817 |
| 5 | Erie | $824 |
| 6 | Auto-Owners | $973 |
| 7 | Amica | $992 |
| 8 | Atlantic States | $1,005 |
| 9 | Donegal Mutual | $1,069 |
| 10 | GEICO | $1,123 |
| 11 | Allied | $1,144 |
| 12 | State Farm | $1,162 |
| 13 | California Casualty | $1,186 |
| 14 | State Auto | $1,267 |
| 15 | Encompass | $1,344 |
| 16 | Harleysville | $1,410 |
| 17 | Nationwide | $1,447 |
| 18 | Mutual Benefit Group | $1,454 |
| 19 | Progressive | $1,472 |
| 20 | Chubb | $1,536 |
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General Casualty has some of the cheapest car insurance rates in Pittsburgh at around $718 annually. Travelers, Penn National, USAA, and Erie also qualify as some of the most economical Pittsburgh, PA insurance companies.
In the above example, if you currently buy coverage from USAA and switched to Travelers, you could earn a yearly price reduction of upwards of $38. Drivers with Erie may save as much as $45 a year, and Auto-Owners policyholders might cut rates by $194 a year.
Be aware that those prices are averages for all types of insureds and vehicles and do not factor in a vehicle location for drivers under 25. So the insurer that can offer the best rates for your situation may not even be in the top 30 companies shown above. That underscores the importance of why you need to compare prices as often as possible using your own driver information and specific vehicle type.
The type of vehicle that is being insured is one of the largest considerations when looking for affordable auto insurance for drivers under 25. Vehicles with lots of horsepower, poor passenger safety features, or an increased likelihood of liability claims will cost much more to insure than safer, lower-performance models.
The list below showcases insurance premiums for a selection of the most economical automobiles to buy insurance for.
| Vehicle | Estimated Cost for Full Coverage |
|---|---|
| Hyundai Elantra GLS Touring Station Wagon | $2,664 |
| Honda Accord LX 4-Dr Sedan | $2,674 |
| Honda CR-V EX-L 4WD | $2,704 |
| Ford Escape XLT 4WD | $2,713 |
| Toyota Prius | $2,917 |
| Jeep Wrangler Sport Islander Package 4WD 2-Dr | $2,947 |
| Ford Edge SE 2WD | $2,952 |
| Dodge Grand Caravan SE | $2,987 |
| Ford F-150 FX2 Super Cab 2WD | $2,996 |
| Volkswagen Jetta 2.0T Station Wagon | $3,086 |
| Honda Odyssey EX W/Rear Entertainment | $3,119 |
| Chevrolet Impala LS | $3,126 |
| Toyota Camry LE | $3,159 |
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Data assumes single female driver age 20, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Pennsylvania minimum liability limits. Discounts applied include claim-free, and safe-driver. Prices do not factor in specific garaging location which can change insurance rates greatly.
Based upon these rates, you can figure that vehicles like the Hyundai Elantra, Honda Accord, Honda CR-V, and Ford Escape will definitely be the cheapest vehicles to insure for drivers age 25 and younger. Prices will be more expensive because there is more claim risk for drivers under 25, but in general those specific models will probably have the lowest insurance rates available.
Full coverage rates compared to liability-only
Saving on insurance is probably important to most drivers, and one of the easiest ways to pay lower rates for insurance for drivers under 25 is to buy only liability coverage. The chart below shows the comparison of car insurance costs with full physical damage coverage compared to only buying the minimum liability limits required in Pennsylvania. The costs are based on no accidents or driving violations, $250 deductibles, single status, and no additional discounts are factored in.
If averaged out across all ages, comp and collision coverage costs $2,311 per year over and above liability only. Many of you may wonder if physical damage coverage is worth the money. There is no written rule to stop buying comp and collision coverage, but there is a general convention. If the yearly cost for physical damage coverage is 10% or more of the replacement cost minus the deductible, then you might consider buying liability only.
For example, let’s say your vehicle’s replacement value is $10,500 and you have $1,000 policy deductibles. If your vehicle is totaled in an accident, the most your company would pay you is $9,500 after the deductible is paid. If it’s costing in excess of $950 annually to have full coverage, then you might want to think about dropping full coverage.
There are some conditions where dropping full coverage is not financially feasible. If you have an outstanding loan on your vehicle, you have to keep full coverage as part of the loan requirements. Also, if you don’t have enough money to buy a different vehicle if your current one is totaled, you should not remove full coverage.
The illustration below demonstrates how deductible levels can affect insurance costs when researching cheap insurance for drivers under 25. The price estimates are based on a married female driver, comp and collision included, and no policy discounts are applied.
A 50-year-old driver could pocket $226 a year by increasing from a $100 deductible up to a $500 deductible, or save $340 by switching to a $1,000 deductible. Younger drivers, like the 20-year-old category, could shave up to $558 each year just by choosing higher deductibles.
If you do raise deductibles, it is important to have enough funds in savings to enable you to cover the extra out-of-pocket expense, which is the primary disadvantage of high deductibles.
Get discounts on Pittsburgh car insurance rates
Insurers that offer coverage for drivers under 25 may additionally offer rate discounts that could lower prices by as much as 25% or more if you can meet the requirements. Large insurance companies and a selection of discounts can be found below.
- Progressive includes discounts for homeowner, good student, multi-policy, online quote discount, multi-vehicle, online signing, and continuous coverage.
- GEICO may include discounts for driver training, emergency military deployment, air bags, military active duty, multi-policy, and anti-lock brakes.
- State Farm has savings for Drive Safe & Save, good student, multiple autos, driver’s education, good driver, multiple policy, and Steer Clear safe driver discount.
- Esurance has discounts for renters, good driver, multi-car, Switch & Save, and online quote.
- The Hartford policyholders can earn discounts including anti-theft, good student, vehicle fuel type, bundle, driver training, and defensive driver.
The diagram below illustrates the difference between insurance costs with and without discounts. The premiums are based on a female driver, no claims or violations, Pennsylvania state minimum liability limits, full coverage, and $100 deductibles. The first bar for each age group shows the average rate with no discounts. The second bar shows the rates with passive restraint, vehicle safety, good student, continuous coverage, paperless filing, and anti-theft discounts applied. When discounts are applied, theamount saved on insurance for drivers under 25 is 21% or $510.
Here’s why you should compare rates often
Pennsylvania insurance rates are calculated based on many things that will increase or decrease the policy price. Simply getting older, buying a new vehicle, or getting into an accident may generate price changes resulting in some rates now being more affordable than the competition. In addition to those changes, car insurance companies amend pricing every year to adjust for heavy claims or excess profits. A period of higher than normal claims can result in a rate increase, while lower claim levels may cause cheaper Pittsburgh car insurance rates.
For example, the chart below analyzes the cheapest car insurance in Pittsburgh, PA for a 45-year-old male driver with no violations or accidents, and a good credit rating. When comparing rates based on his current risk factors, General Casualty quotes the lowest car insurance rates in Pittsburgh at $933 each year. This is $724 less than the average rate paid by Pennsylvania drivers of $1,657. USAA, Travelers, Erie, and Penn National are also included in the cheapest Pittsburgh, PA auto insurance companies.
In the next rate comparison, we’ll give the driver in the first chart a chargeable accident, slightly worse credit, and a stop sign violation. Because each insurer has a different process for setting rates, comparing insurance quotes may result in a different list of companies as shown below.
Atlantic States now has the cheapest insurance rate in Pittsburgh, PA with Amica, Donegal Mutual, USAA, and Travelers also having competitive pricing. This shows why it is important to compare rates when trying to find the best auto insurance quotes for drivers under 25. Rates can be determined by many different factors and can decrease or increase without notice, so the cheapest option the last time you shopped around may now not even be in the top five.
If you wish to get some guidance when trying to find the best insurance rates for drivers age 25 and younger, the agents below can most likely provide answers to your questions and help you determine which policy is best.
To find a Pittsburgh insurance agent by location nearest to you, click the button at the bottom or click here to compare prices now.
- Lindsay Brown – State Farm Insurance Agent
300 Cedar Blvd #205 – Pittsburgh, PA 15228 – (412) 344-3030 - George O’Korn – State Farm Insurance Agent
4486 Steubenville Pike – Pittsburgh, PA 15205 – (412) 921-1182 - John Cosey – State Farm Insurance Agent
5869 Forbes Ave – Pittsburgh, PA 15217 – (412) 521-7070