At Plymouth Rock, we do more than just help drivers get car insurance. We want to assist Pennsylvania drivers in understanding how auto insurance in their state works. From there, they can decide the best policy for them.
Understanding your Pennsylvania auto insurance limits
The terms “auto insurance limits” and “coverage limits” refer to the maximum amount an insurer will pay in the event of a loss that is covered under your insurance policy.
The higher the limit, the more the insurer will pay in the event of an accident. You’ll pay less out of pocket, but your insurance policy will cost more. Carrying lower limits can reduce your premium payments, but it comes with some risk. With lower limits, you’ll be responsible for higher out-of-pocket costs in the event of an accident.
When choosing your auto insurance limits, consider aspects like the value of your car and the amount that you’re comfortable spending in the event of an accident or even a total loss.
Your ability to pay for medical expenses for yourself or another party in the unfortunate case of an accident that causes injuries should also be an important factor when thinking about how much coverage you need. If you have any questions, the passionate insurance experts at Plymouth Rock would love to discuss your needs.
Is Pennsylvania a no-fault state?
Yes, PA is a no-fault state. Pennsylvania requires you to have Personal Injury Protection (PIP). This provides medical coverage for you and your passengers if there’s an accident, no matter who was at fault.
This is different from liability coverage, which covers bodily injury and property damage that you cause to another driver or their passengers when you’re at fault.
What is the minimum car insurance coverage in Pennsylvania?
Pennsylvania law requires that you carry bodily injury liability limits of at least $15,000 per person and $30,000 per accident. You also must have property damage liability limits of at least $5,000. As a no-fault state, Pennsylvania requires you to have at least $5,000 of PIP per person on your insurance policy.
In addition to the below coverages, you also have the option of full or limited tort when you pick your policy:
Bodily Injury to Others
Protects you against legal liability for the accidental injury or death of others (not including your passengers) caused by the operation of your car. You’re required to be covered up to a basic limit of $15,000 per person and $30,000 per accident by your car insurance provider in Pennsylvania.
Personal Injury Protection (PIP)
Pays for medical costs for you and your passengers in the event of an accident. It doesn’t matter which driver was at fault. In Pennsylvania, you’re required to carry a minimum coverage limit of $5,000.
Property Damage
Pays for damage to another person’s property when you, a household member or another authorized driver causes an accident. Typically, this will be another person’s vehicle. You need at least $5,000 of coverage to meet the Pennsylvania minimum insurance limits.
Full/Limited Tort
In Pennsylvania, you have the option of choosing between full or limited tort coverage. Tort is your ability to sue another at-fault driver for certain damages, like pain and suffering. Full tort coverage policies cost more but give you unrestricted rights to sue. Limited tort coverage policies are less expensive, but you won’t be able to sue for damages unless injuries are severe enough, as defined by Pennsylvania law.
What are the major types of optional auto insurance coverage in PA?
Optional coverage options for car insurance in Pennsylvania include comprehensive coverage, collision insurance, uninsured and underinsured motorist coverage, coverage for substitute transportation, additional medical coverage beyond mandated PIP requirements, and loan/lease gap insurance.
Comprehensive coverage
Protects your car from damage NOT related to a collision with another vehicle. This includes things like natural disasters and storms, fires, vandalism, damage caused by hitting an animal, and more.
Collision coverage
Covers the cost to repair or replace your car after a collision with another vehicle or stationary object. Collision only covers damage to your car or someone else’s car that you are operating with permission of the owner.
However, it does not cover the damage you cause to other vehicles. You’ll need property damage liability coverage in that case. Mechanical breakdowns and wear and tear are not covered by collision, either.
Uninsured and underinsured motorist coverage
Protects you, anyone you let drive your car, household members and passengers against losses caused by an uninsured or underinsured driver.
Uninsured drivers are those without insurance, and this also covers unidentified (“hit and run”) drivers. An underinsured driver is one who has liability insurance, but not enough to cover your injuries. If you choose these optional coverages, there’s a minimum limit of $15,000 per person and $30,000 per accident.
Coverage for substitute transportation
Helps you get around while your car is being repaired from a collision or comprehensive claim. We offer rental limits ranging from $15 per day/$450 maximum up to $100 per day/$3,000 maximum.
Coverage for medical payments beyond the mandatory PIP requirement
Takes care of reasonable expenses for necessary medical and funeral services incurred as the result of an accident by anyone in your car, or incurred by you or any household member, in the event you’re struck by a car or are in someone else’s car at the time of an accident. The optional coverages, which include the income loss, accidental death and funeral benefits, can be purchased individually or combined. We offer limits ranging from $1,000 up to $25,000 (limit varies by coverage).
Loan/lease gap insurance
Covers you in the event if you’ve totaled your car to the point where the cost of repairing it exceeds its actual cash value, but you’re still making payments.
Collision and comprehensive coverages pay no more than the actual cash value of your vehicle just before the accident occurred. Sometimes, you might owe more than that on your loan or lease.
For a covered collision or comprehensive loss, loan/lease coverage will pay the difference between the actual cash value of your car and the remaining balance on your loan or lease, so that you can free yourself from this financial burden and get back on the road as quickly as possible.
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