Auto Insurance

Pennsylvania’s Insurance Requirement

Drivers must purchase and maintain car insurance in order to legally drive in Pennsylvania. Under state law, this is called maintaining “financial responsibility.”

A lapse in insurance coverage may result in the suspension of your vehicle registration for three months. Exceptions apply if the lapse is less than 31 days and the vehicle was not operated during that time. If PennDOT determines you drove without insurance, your driver’s license may also be suspended for three months.

In addition, your car’s license plate, registration sticker, and driver’s license must be surrendered to PennDOT during the suspension period.

Penalties for Driving Without Insurance

 If you are stopped for a moving violation and it is determined that you are operating your vehicle without insurance, you could face the following penalties and expenses:

• A minimum of $300 fine for driving uninsured
• A three-month suspension of your vehicle registration $ driver’s license
• Restoration fees for reinstating your vehicle registration and driver’s license.
• Vehicle impoundment In addition

Your vehicle may not be driven by anyone while the registration is suspended.

Required Coverages in Pennsylvania

Auto insurance is mandatory in the commonwealth Page 3 Pennsylvania’s required coverages When you purchase private passenger automobile insurance, there are certain coverages that are required and others that are optional. The required coverages are:

Medical Benefits – Covers medical bills for you and others under your policy, regardless of fault.

Bodily Injury Liability –  If you injure someone in a car accident, this coverage pays their medical and rehabilitation expenses and any damages for which you are found liable. The minimum limit is $15,000/ $30,000. The $15,000 pays for injuries to one person, while the $30,000 represents the total available for one accident.

Property Damage Liability – If you damage someone’s property in an accident and you are at fault, this coverage pays for it. The minimum limit is $5,000 of coverage. Some insurers offer a combined single limit of $35,000, which meets the minimum bodily injury and property damage liability requirements.

Limited or Full Tort

• Limited Tort: Limited tort coverage offers you a savings on your premiums. You are still able to recover all out-of-pocket medical and other expenses; however, you are not able to recover certain damages – such as payments for pain and suffering – unless the injuries meet one of the exceptions to limited tort as defined in Act 6 of 1990, title 75, section 1705 (d).
• Full Tort: you retain unrestricted rights to bring suit against the negligent party.

Optional Coverages in Pennsylvania

In addition, private passenger automobile insurance policies offer a variety of additional optional coverages that can be purchased. These include:

Uninsured Motorist (UM) – Covers you, your family, and your passengers for bodily injury if hit by an at-fault uninsured motorist. (Does not cover property damage).

Underinsured Motorist (UIM) – Covers you, your family, and your passengers for bodily injury if hit by an at-fault motorist with insufficient insurance. (Does not cover property damage).

Stacking of UM or UIM – Allows you to:

(1) Multiply UM/UIM coverage by the number of vehicles on your policy, or

(2) Receive UM/UIM coverage from multiple policies. (Additional cost applies.)

Funeral Benefit – Pays funeral expenses (up to a limit) if you or a family member dies as a result of an auto accident.

Income Loss – Pays part of lost wages if accident-related injuries prevent you from working.

Collision Coverage – Pays to repair damage to your car after an accident.

• Required by most lenders for car loans.
• PA law applies a $500 deductible (higher deductible = lower premium).

Comprehensive Coverage – Pays for theft or damage caused by fire, flood, vandalism, or hitting an animal.

• Required by most lenders for car loans.
• Different deductible levels available.

Extraordinary Medical Benefits – Pays medical/rehabilitation expenses exceeding $100,000 (up to $1 million).

Accidental Death Benefit – Paid to the insured’s representative if an auto accident causes death within 24 months.

Rental Reimbursement Coverage – Pays rental car expenses (up to policy limit) if your car is in repair due to a covered collision or comprehensive loss.

Towing Coverage – Reimburses towing and labor costs for a disabled vehicle (available only if you carry collision & comprehensive coverage).

Gap Coverage – Pays the difference between the insurance payout for a totaled car and the remaining loan balance (commonly for new vehicles).