Paul Sanchez
Pennsylvania is one of only three US states that operates a choice no-fault system for auto insurance. This means that drivers must choose between limited tort (no-fault) and full tort (at-fault) coverage. Under the no-fault system, each party involved in an accident is responsible for seeking compensation for their injuries and damages from their own insurance company, regardless of who was at fault.
| Characteristics | Values |
|---|---|
| Type of state | No-fault |
| No-fault insurance laws | Drivers must purchase personal injury protection (PIP) insurance |
| Who pays for medical costs | Your own insurer, regardless of fault |
| Ability to sue | Limited unless the injuries are severe |
| Limited tort coverage | No-fault insurance system |
| Full tort coverage | Traditional at-fault insurance system |
| Mandatory insurance requirements | Yes |
| Minimum liability insurance requirements | $15,000 for injury or death to one person in an accident, $30,000 for injury or death to more than one person, and $5,000 for property damage |
| Medical benefits coverage | $5,000 |
What You'll Learn
Limited tort coverage
Pennsylvania is one of a dozen or so states that follow a no-fault car insurance system. When buying a car insurance policy, drivers in Pennsylvania must choose between "limited tort" and "full tort" coverage.
Although limited tort coverage restricts your ability to claim for pain and suffering, there are exceptions. You can seek non-economic damages under limited tort coverage if you've suffered a 'serious injury' or fit within certain legal exceptions. These exceptions include accidents with drivers convicted of DUI or accepted into ARD, intentional collisions by another driver, injuries sustained as a pedestrian or in a motorcycle/commercial vehicle accident, being hit by an out-of-state vehicle, and accidents involving uninsured at-fault drivers.
Auto Liability Insurance: A Savior in Hit-and-Run Scenarios?
You may want to see also
Full tort coverage
Pennsylvania is one of the few states that follow a "choice" no-fault car insurance system. This means that drivers in Pennsylvania can choose between "limited tort" and "full tort" coverage when purchasing a car insurance policy.
If you have full tort coverage, you can automatically assert a claim for all of your losses, not just the "out of pocket" costs. This is because you are not forced to demonstrate that you received a serious injury before recovering damages for pain and suffering. On the other hand, limited tort coverage limits your right to recover damages for pain and suffering unless you have suffered a "serious injury", which typically means something more than a soft tissue injury.
When deciding between full tort and limited tort coverage, it is important to consider your monthly budget, your family situation, and whether you would ever sue another driver. While full tort coverage provides more comprehensive protection, the higher premiums may deter some people. However, the peace of mind and comprehensive compensation rights it offers may outweigh the financial considerations for many drivers, especially those with families.
Does Auto Insurance Cover Fallen Trees?
You may want to see also
Personal injury protection (PIP)
In Pennsylvania, the minimum PIP coverage amount is $5,000 in medical benefits. This covers medical bills for the policyholder and their passengers, regardless of who is at fault in the accident. PIP coverage also extends to pedestrians injured by an insured vehicle within the state. Additionally, PIP can provide coverage for lost income, child care, and funeral expenses related to the accident.
It is important to note that PIP does not cover property damage claims. Separate collision and comprehensive coverage are required for physical damage to vehicles. Pennsylvania is a "choice" no-fault state, allowing drivers to choose between limited tort and full tort coverage. Limited tort coverage limits the right to sue for non-economic damages, such as pain and suffering, unless the injuries are severe. On the other hand, full tort coverage allows individuals to sue the at-fault party for a wider range of damages but at a higher premium cost.
Leasing a Vehicle: Insurance Impact
You may want to see also
No-fault vs at-fault systems
No-fault insurance systems and at-fault insurance systems differ in how they handle insurance claims and the rights of the insured to sue for damages.
No-Fault Insurance Systems
In no-fault insurance systems, each individual insurance company compensates its policyholder for injuries with no regard for who was at fault for the accident. In these systems, drivers must carry personal injury protection (PIP) insurance, which covers medical expenses after a car accident, regardless of who was at fault. This saves time and energy for the drivers, as they don't need to file a claim through each other's insurance. However, no-fault states may allow drivers who suffer severe injuries to step outside of the no-fault system and sue the at-fault driver if certain conditions are met.
The no-fault system aims to reduce the cost of auto insurance by removing small claims from the court system. However, it's important to note that no-fault insurance policies can be more expensive due to the comprehensive coverage they provide. Additionally, the process of claiming no-fault insurance typically does not involve litigation, and each accident victim receives payment for their medical expenses and lost wages under the applicable no-fault state law.
At-Fault Insurance Systems
In at-fault insurance systems, the person who caused the car accident is responsible for paying for the damages. Their bodily injury (BI) liability insurance will cover the other driver's medical expenses, and their property damage liability will cover the other driver's vehicle repairs. The amount of the payout will vary by state.
In at-fault systems, the insurers of both parties review the details and make a judgment about which driver is responsible for the accident. Claims adjusters typically talk to witnesses, look at police reports, and review accounts of the accident to determine fault.
Pennsylvania's "Choice" No-Fault System
Pennsylvania is one of the states that follow a "choice" no-fault system, allowing drivers to select between limited tort (no-fault) and full tort (at-fault) coverage. Limited tort coverage limits the right to sue for non-economic damages, such as pain and suffering, unless the injuries are severe. Full tort coverage, on the other hand, allows individuals to sue for a wider range of damages, including economic and non-economic losses. Pennsylvania also mandates basic liability and medical benefits coverage for all vehicle owners, but property damage claims require separate collision and comprehensive coverage.
Gap Insurance Tax in Pennsylvania
You may want to see also
Pennsylvania's choice no-fault system
Pennsylvania is one of only three states that operates a "choice no-fault" system, alongside New Jersey and Kentucky. This means that drivers can choose to use a no-fault insurance system or a fault-based insurance system.
Under Pennsylvania's choice no-fault system, drivers must choose between "limited tort" (no-fault) and "full tort" (at-fault) coverage when buying a car insurance policy. Limited tort coverage is cheaper but limits your right to sue for pain and suffering unless your injuries are severe. Full tort coverage is more expensive but allows you to sue for a wider range of damages.
Limited tort coverage means your insurance company pays for your damages, regardless of who caused the accident. Choosing full tort coverage means you can sue the at-fault party for damages. If you don't choose between these two options when purchasing your auto insurance, the policy defaults to full tort coverage.
Pennsylvania's no-fault car insurance system applies to injuries caused by car accidents but not to vehicle damage claims. A claim for damage to a vehicle can be made against the at-fault driver, with no limitations.
Home and Auto Insurance: Do Motorcycles Fit the Bill?
You may want to see also
Frequently asked questions
Yes, Pennsylvania is a no-fault state, which means that each driver's insurance company is responsible for covering their medical expenses and other financial losses resulting from an accident, regardless of who caused it.
No-fault insurance covers medical expenses, loss of income, and other miscellaneous expenses for all vehicle occupants after an accident, regardless of fault. This includes pedestrians injured by an insured vehicle within the state. It does not cover physical damage to vehicles involved in the accident.
"Limited tort" coverage limits your right to sue for non-economic damages, such as pain and suffering, unless your injuries are severe. "Full tort" coverage allows you to sue for a wider range of damages, including non-economic losses, but comes at a higher premium cost.
In Pennsylvania, vehicle owners must have liability insurance with coverage of at least $15,000 for injury or death of one person, $30,000 for injury or death of more than one person, and $5,000 for property damage. Additionally, drivers must carry at least $5,000 in medical benefits coverage.
