Whether you just got your first car or you’ve been driving in Pennsylvania for years, understanding your state’s auto insurance requirements is crucial for ensuring you’re properly covered in the event of an accident. Here’s what you need to know:
Required coverage in Pennsylvania
Every state has different minimum insurance requirements. In Pennsylvania, you’re legally required to have at least the following amount of coverage, according to the Pennsylvania Insurance Department:
- Bodily injury liability – This covers medical expenses for victims of an accident you cause. The minimum limit is $15,000 per person/$30,000 per accident.
- Property damage liability – Covers damage to a person’s property as a result of an accident you cause. The minimum limit is $5,000 of coverage.
- First party benefits – Pays your medical bills and the medical bills of others covered by your policy, regardless of fault. The minimum limit is $5,000.
- Limited or full tort – You can choose to have full or limited tort coverage. With full tort, you have the full rights to sue a negligent party that caused you pain or suffering as a result of an accident. With limited tort, you are able to recover all out-of-pocket medical and other expenses, but you cannot recover certain damages, such as payments for pain and suffering, unless the injuries meet a certain threshold. Limited tort will save you money on your premiums.
It’s important to keep in mind that the bare minimum amount of coverage may not be enough. According to Bankrate.com, accident-related expenses routinely surpass what’s covered by many states’ minimum insurance requirements, leaving the policyholder on the hook for paying the rest, which can be expensive.
Optional coverage
There are a number of optional insurance coverages you can purchase in Pennsylvania for extra financial protection, including:
- Uninsured motorist – This covers you, your family and your passengers for bodily injury if you are hit by an uninsured motorist. It will not cover property damage, however.
- Underinsured motorist – Similar to uninsured motorist coverage, this covers you, your family and your passengers for bodily injury if you are hit by a motorist who does not have enough insurance to cover your claim. It also does not cover property damage.
- Collision – Pays for damages to your car that occur as the result of an accident. Under Pennsylvania law, the insurance company will apply a $500 deductible unless you request a lower amount.
- Comprehensive – Pays for theft or damage to your car that occurs as the result of fire, flood, vandalism, or other situations that do not involve a collision with another object.
- Income loss – Pays a portion of your lost wages when injuries from a car accident keep you from working.
- Extraordinary medical benefits – Pays for medical and rehabilitation expenses that exceed $100,000 with a maximum of $1 million of coverage.
- Funeral benefit – Covers funeral expenses up to a certain dollar amount if you or a family member dies as a result of a car accident.
Penalties for driving uninsured
If you are pulled over in Pennsylvania and it is determined that you are driving without auto insurance, you could face a number of penalties and fees. According to the Pennsylvania Insurance Department, these include:
- A fine of $300 or more
- A three-month suspension of your vehicle registration
- A three-month suspension of your driver’s license
- Restoration fees to restore your vehicle registration and driver’s license
- Vehicle impoundment
However, if the lapse of coverage was for a period of less than 31 days and you as the owner of the vehicle can prove that the vehicle was not operated during that time, you’ll be off the hook.
Acquiring insurance
When you’re ready to apply for insurance, your provider will look at several things to determine your premium. These could include the type of vehicle you drive, how old it is, what safety features it has, where you park it, how often you drive, your driving history, and more. You’ll also need to provide your insurer with the following information for all drivers in your household, according to the Pennsylvania Insurance Department:
- Driver’s names, ages, sex and marital status
- Driving record
- How many miles you drive each year
- Vehicle identification number
- Year of vehicle
- Cost of vehicle
- Special equipment in the vehicle, such as anti-theft devices.