Understanding Auto Insurance Coverage in PA

It is important for drivers to understand auto insurance coverage, as it provides financial protection to vehicle owners. It helps minimize the financial loss that occurs after an accident. As a driver, you need to have insurance coverage to minimize risks to other people on the road as well as coverage to protect your own vehicle.

What Are Pennsylvania Auto Insurance Coverage Requirements?

Many states, have car insurance requirements. This is the type and minimum amount of coverage you must carry to operate a vehicle legally in the state. Liability insurance (link to liability) is a required coverage which protects other drivers. Medical Payments Coverage is another type of mandatory coverage that pays the medical bills for injuries sustained by you and possibly your passengers, regardless of who is at fault for the accident. 

 In Pennsylvania, you must have the following insurance coverages and minimum limits in place.  Higher limits may be purchased, but these are the minimum required by the state.

• $15,000 per person and $30,000 per accident in Bodily Injury Liability Coverage
• $5,000 in Property Damage Liability Coverage
• $5,000 in First Party Benefits Medical Payments Coverage

The minimum limits set by the state are just that, the lowest minimum coverage amounts legally required. Most drivers will benefit from higher levels of protection. This works to protect you in the event of a claim or lawsuit. A simple accident can create thousands of dollars in medical bills even if it is a minor incident.

In PA, Uninsured Motorist and Underinsured Motorist coverages must be offered but are not required and may be waived. However, doing so puts you at risk, as these coverages help to protect you from other “at fault” drivers who either do not maintain auto insurance or have low coverage limits that may not be adequate in the event of an accident.

Who Must Maintain Auto Insurance in PA?

The state of Pennsylvania requires all vehicle owners registering their vehicle with the Department of Transportation to have proper insurance coverage. If you do not have insurance, you may face a minimum of a $300 fine. In addition, PennDOT may also suspend or revoke your license and registration.  You may also be required to pay restoration fees. This is common if you have several violations. If you operate a vehicle in the state, you must have coverage as well.

Protecting Your Vehicle’s Value

Your vehicle is valuable to you. If you were in a car accident and the vehicle was totaled, could you easily purchase a new car? If not, you should have physical damage coverage in place on your car. Physical damage coverage includes Collision coverage and Comprehensive coverage. These coverages help to cover the cost to repair or replace your vehicle in the event of a loss.

• Comprehensive auto insurance covers damage to your vehicle related to mostly non-driving events. This includes fires, storm damage, theft, and vandalism. It also covers damage caused by colliding with an animal.
• Collision auto insurance covers damage to your car caused by colliding with something, such as another vehicle or object.

Determine how much and which types of auto insurance are right for you based on the value of your car. Also note that, if you lease your car or you have a loan on it, the leasing company or lienholder may require that you carry comprehensive and collision coverages on your vehicle and perhaps gap insurance as well.

Customize Your Auto Insurance Policy

Understanding auto insurance in your state helps you to decide what to choose for your specific needs. Work closely with your agent to understand all of the options available to you. Your agent will also help you find discounts and savings opportunities for you. Most drivers will be able to find an affordable policy fitting their needs.

Having auto insurance protects your finances. While some coverages may not be necessary, all drivers should consider the value of investing in a high quality, well-designed policy. A trusted auto insurance agent can help you to do this.

Call 855-993-4470, get your free quote online, or find an agent to learn more about understanding auto insurance coverage in PA. Visit our contact us page if you need to call us with additional questions.