Pennsylvania Insurance (PA)

Pennsylvania Car Insurance Essentials

• Medical Benefits — This pays medical bills for you and others covered on your policy despite the consequences of fault. The lowest limit is $5,000 of coverage. Higher limits are on hand to suit your specific requirements.
• Bodily Injury Liability — In case you hurt someone in a car accident, this coverage compensates their remedial and treatment expenses and any damages for which you are found liable. The minimum amount of coverage that you must buy is $15,000/$30,000. The former amount stands for the payment for injuries to one person while the letter represents the total indemnity available for one accident.
• Property Damage Liability — If you happen to damage someone's property in an accident and you are deemed guilty, this coverage pays for it. The minimum amount of coverage that you must purchase is $5,000. Some companies offer a single consolidated limit of $35,000 which meets the physical injury liability and property damage liability minimum stipulations.

Other Options under Pennsylvania's Auto Insurance Law

• Collision — This facility pays to fix damage to your car resultant of an accident. Most banks or lenders necessitate you to purchase this coverage to receive a car loan. Under Pennsylvania law, the company imposes a $500 deductible unless you ask for a lower amount. The higher your deductible, the lower your premium.
• Comprehensive — Usually, this coverage pays for theft or damage to your car from perils including fire, flood, sabotage or striking an animal. Most banks or lenders need you to buy this coverage to obtain a car loan. There are a range of levels of deductible to purchase.
• Extraordinary Medical Benefits — Providing a maximum of $1 million of coverage, this policy recompenses when remedial and treatment expenses surpass $100,000.
• Full Tort — With this choice you keep hold of unlimited rights to file suit against the neglectful party.
• Limited Tort — Purchasing a policy under the limited tort system you will make savings your premium. You are still able to gain back all out-of-pocket medical and other expenses. You are unable to recover certain reparations such as expenses for pain and suffering unless injuries are defined as serious.
• Funeral Benefit — Pays up to $2,500 if you or a family member expires as an outcome of an auto accident.
• Income Loss — Pays your wages when injuries caused in an auto accident keep you from working.
• Stacking of UM or UIM — This arrangement allows you to multiply the amount of uninsured or underinsured motorist coverage by the number of vehicles on your policy. You have to incur additional costs to pile uninsured or underinsured motorist coverage.
• Uninsured Motorist (UM) — This covers physical injury for you or your family if an uninsured motorist in the wrong hits you.
• Underinsured Motorist (UIM) — This covers physical injury losses for you or your passengers if you are hit by guilty motorist who does not have enough insurance to cover your claim.

Contact PA Department of Insurance at

PA Insurance Department, 1209 Strawberry Square
Harrisburg, PA 17120
Phone: (717) 787-2317
Fax: (717) 787-8585

Insurance department hours of operation are 8:30 am to 5:00 pm

Pennsylvania Auto Insurance FAQ
1. My automobile policy was canceled because I did not pay my premium on time. Is this legal?
Pennsylvania law does not call for companies to extend a grace period for premium payments. If payment is not received by your due date, the company is at its discretion to cancel your policy for nonpayment of the premium.

2. Can my insurance company cancel my auto insurance policy if I am found guilty of drunk driving?
Yes. In Pennsylvania, if you are found guilty of driving under the influence of alcohol, whether or not you take the Accelerated Rehabilitation Disposition Program (ARD), your driver's license will be put on hold. A license suspension is a fitting reason for a cessation or non-renewal.

3. What should I do if I receive a cancellation or non-renewal notice from my insurance company?
First, get in touch with your agent or your insurance company for explicit particulars concerning the action. Pennsylvania law permits companies to cancel or non-renew policies on certain grounds. If you are still not satisfied with your company's justification, put forward a statement specifying the causes behind your disagreement with the action to the Pennsylvania Insurance Department. The statement has to reach the Insurance Department within 30 days of your receipt of the notice.

4. What is a surcharge?
A surcharge is an extra premium charge, for a limited period of time, as a result of infringements, suspensions or accidents on the driving record of any driver covered under your policy.

5. What protection do I have against unreasonable surcharges or policy terminations?
Motorists in Pennsylvania may no longer be surcharged or have their policy non-renewed if the claim(s) resulting from the accident(s) in the preceding three years do not add to more than $1150 after payment of any deductible, or if the insurance company is paid back for at least 60 percent of the total amount of the paid claim.

6. How much will my insurance company pay me if my car is damaged?
Your insurance company is under compulsion to pay the amount needed to reinstate the motor vehicle to the same condition as it was just before the damage in question. At your request, you may obtain information from the insurance company as regards repair services within a reasonable distance of where the motor vehicle is to be found and where work will be performed according to the written assessment. You are not required to use any particular repair shop.

7. Is it legal for my insurance company to not renew my auto insurance because I have too many claims?
A company is at its discretion not to renew a policy for two or more accidents of certain types within 36 months, when the amount paid in claims for both accidents exceeds $1150 after the insured pays any pertinent deductible.

8. How are Pennsylvania auto insurance rates determined?
The price of Pennsylvania auto insurance is arrived at by the general conduct of the state's drivers. Assessing the cost of providing insurance for Pennsylvania drivers, including settlements and legal fees, Pennsylvania auto insurance companies divide it up among the drivers.

The percentage you pay is can be considerably different from your fellow Pennsylvania motorists depending upon such variables like your driving record, your age, your place of residence, and the kind of car you drive.

Also, different auto insurance providers apply the percentages in different ways. This means that they will charge different rates on the same driver.

So as a driver and/or a car-owner, you need to shop the different rates for the best arrangement.