Bankrate issues correction about rise in Philadelphia car insurance rates

PHILADELPHIA (WPVI) -- Financial services company Bankrate has issued a correction after releasing a report earlier this month saying car insurance rates in Philadelphia had jumped by 154% in the past year.

In a statement released to Action News on Wednesday, Bankrate said an error was uncovered when it reviewed its numbers for 2023.

The numbers used in last year's report for Philadelphia were much lower than Bankrate is now reporting.

The erroneous numbers were then used in this year's report, which showed a massive increase.

Numbers posted on its website now show an increase of about 21% year-to-year. That's still a hefty sum, just not as much as previously reported.

The 2024 average for Philadelphia of $4,753 is also far higher than the national average of $2,543.

Bankrate assures users that its 2024 numbers are correct.

Bankrate analyst Shannon Martin said car thefts and carjackings are partly to blame for the rising costs in our area. She also says inflation increased the cost of vehicle parts and labor, forcing companies to put the cost back on the consumer.

"Even though we know inflation is slowing, some of these costs are coming down and insurance companies just started to recoup that money, so we likely won't see any changes until 2025," said Martin.

Experts say you can save money by shopping around and comparing rates online.

"Maybe remove coverages that you don't need, towing or lockout, rental reimbursement, gap coverage," said Martin. "Those are extras that you might not want to put money toward right now."

Martin says some credit card and cell phone companies offer some of those benefits at a cheaper rate.

Also, a heads up for parents with teen drivers: the report found that adding a teen to your policy in Pennsylvania costs more than having a speeding ticket.

However, if your student has a 3.0 GPA or higher, it can save hundreds of dollars on your insurance policy.

To read the full report, visit Bankrate.com.