Posted On November 20, 2012 Personal Injury

Why Philadelphia Drivers Pay So Much For Auto Insurance

Car insurance for drivers living in Philadelphia is really expensive. In fact, according to the latest data released by Runzheimer International, a competitive analysis and mobility services firm, Philadelphia is the second-most expensive city for auto coverage in the country. The average annual premium, as stated in the firm’s report, for a Philly driver with what most consumers consider “full coverage” is $4,076 annually as of 2011. That’s about $340 every month spread out over a given year. Why do drivers living in the city face such high premiums for an average policy? The answer isn’t so complicated, and yes, it involves a fair amount of reckless driving and car crashes.

More Drivers Leads to Higher Premiums

Gridlock, or traffic jams caused purely by the volume of vehicles on the road, is common on highways surrounding Philadelphia. It happens every day, without fail. Radio traffic reports should probably just be the sound of someone throwing a pile of papers in the air in frustration. We know the Schuylkill is jammed. We know the Blue Route is bottled up – you don’t have to tell us. The number of vehicles sharing these roadways in close proximity increases the chances drivers will get into accidents, which raises risk for auto insurance companies. Insurers are kind enough to pass the cost along to consumers, which manifests in higher overall premiums.

Paying for the Uninsured Motorists         

Driving without insurance is illegal in Pennsylvania, and everywhere else in the United States. Seven percent of all drivers in Pennsylvania took to the streets without proper coverage in 2009, according to data released by the Insurance Research Council. The information also indicated one in seven drivers are uninsured at the national level.

Once again, auto insurance companies pass the increased risk of uninsured motorists onto their policyholders in the form of increased premiums. Because Philadelphia has a high number of uninsured motorists on its roadways, motorists operating vehicles legally have to pay more for coverage.

Going Cheaper May Not Save Money

Trying to lower coverage costs by dropping policy components or raising deductibles might not provide any savings in the long-term, if a driver sustains serious injuries in an automotive collision. The cost of a single trip to the emergency room can erase the medical benefits contained in a “minimum coverage” policy leaving an injured driver owing potentially thousands of dollars in hospital bills. Medical debt can cripple finances for years after an accident, erasing any savings a driver might’ve earned from having a lower coverage auto policy.

If you’ve suffered injuries in an auto accident due to the reckless actions of another driver, you need help to obtain the compensation you deserve. Our Philadelphia accident lawyers have been helping accident victims obtain their personal injury claims since 1994.