Pa Auto Insurance: No-Fault State?

Pennsylvania is one of the few US states that follow a no-fault insurance system for auto accidents. This means that after an accident, each party involved is responsible for seeking compensation for their injuries and damages from their own insurance company, regardless of who was at fault. Pennsylvania is also a choice no-fault state, which means drivers can choose between limited tort (no-fault) and full tort (at-fault) coverage when purchasing their auto insurance. Limited tort coverage limits your right to sue for non-economic damages, such as pain and suffering, and is generally cheaper. On the other hand, full tort coverage allows you to sue for a wider range of damages but comes at a higher premium cost.

Pennsylvania's choice no-fault system

Pennsylvania is one of only three states that operates a "choice no-fault" system for auto insurance. This means that drivers can choose between "limited tort" (no-fault) and "full tort" (at-fault) coverage. Under the no-fault system, your insurance company pays for your damages, regardless of who caused the accident. With full tort coverage, you can sue the at-fault party for damages.

Limited tort coverage limits your right to sue for non-economic damages, such as pain and suffering, unless you have suffered a "serious injury". Full tort coverage gives you the right to sue for a wider range of damages, including economic and non-economic losses. However, it usually comes with a higher premium cost.

Pennsylvania's no-fault system applies to injuries but not to vehicle damage claims. In the case of property damage, a claim can be made against the at-fault driver.

Pennsylvania law requires all drivers to have a basic level of auto insurance coverage. The minimum liability insurance requirements include $15,000 for injury or death of one person, $30,000 total for injury or death of more than one person, and $5,000 for property damage. Drivers must also carry at least $5,000 in medical benefits coverage, which pays for medical expenses for the policyholder and passengers, regardless of who is at fault.

Limited tort coverage

Pennsylvania is a "'choice no-fault' state, which means that drivers can choose between "limited tort" and "full tort" coverage when purchasing auto insurance. Limited tort coverage is a no-fault insurance system where your insurance company pays for your damages, regardless of who caused the accident. This option tends to be cheaper, with premiums around 15% lower than full tort coverage. However, this comes at the cost of limiting your ability to recover non-economic damages, such as pain and suffering, in the event of an accident.

It is important to note that limited tort policyholders are not completely barred from suing for non-economic damages. There are specific exceptions where they can recover damages for pain and suffering despite policy limitations. These exceptions include accidents involving:

• Drivers convicted of DUI or accepted into an ARD program
• Intentional collisions by another driver
• Injuries sustained as a pedestrian or in a motorcycle/commercial vehicle accident
• Being hit by a vehicle registered outside of Pennsylvania
• Uninsured at-fault drivers

Understanding these exceptions is vital for limited tort policyholders, as it outlines the situations in which they can seek damages for pain and suffering.

Full tort coverage

Pennsylvania is one of the few US states that follow a no-fault insurance system for auto accidents. Under this 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. However, Pennsylvania is also a "choice no-fault" state, which means that drivers can choose between limited and full tort coverage when purchasing auto insurance.

While full tort coverage typically comes with higher premiums than limited tort, it offers comprehensive compensation rights that may outweigh the financial considerations for many drivers. It is important to consider your priorities and potential risks when deciding between full tort and limited tort coverage. For example, parents often choose full tort coverage because they want to secure a healthy settlement in case they are involved in a serious accident with their children in the car. On the other hand, young drivers usually opt for limited tort to save money on their more expensive insurance plans.

In summary, full tort coverage in Pennsylvania provides drivers with the ability to seek total compensation for their losses in the event of a car accident. It allows you to hold the responsible party accountable and seek compensation directly from them, rather than working through your own insurance company. When choosing between full tort and limited tort, it is advisable to consult with an insurance professional or legal advisor to determine the best option for your specific needs and circumstances.

Personal injury protection (PIP)

In Pennsylvania, drivers must have a minimum of $5,000 in PIP coverage, which will pay for medical bills and other out-of-pocket losses incurred by anyone covered under the policy, up to the coverage limits. PIP coverage also often extends to lost income, childcare, and funeral expenses related to the accident.

While Pennsylvania is a no-fault state, it is unique in that it offers a "'choice no-fault' system", allowing drivers to choose between limited and full tort coverage. Limited tort coverage limits the ability to sue for non-economic damages, such as pain and suffering, unless the injuries are "serious." Full tort coverage gives broader recourse to sue for a wider range of damages but comes at a higher premium cost.

It's important to note that PIP has minimum coverage amounts and per-person maximum coverage limits. If the cost of medical care exceeds the PIP limits, health insurance may cover further expenses. Additionally, PIP does not cover property damage, and separate collision and comprehensive coverage are required for that.

Serious injury threshold

Pennsylvania is one of the dozen or so US states that follow a no-fault car insurance system. This means that after a car accident, your own car insurance coverage pays for medical treatment and other out-of-pocket losses incurred, up to coverage limits, regardless of who caused the accident. In Pennsylvania, this is known as "medical payments" coverage.

However, Pennsylvania is unique in that it is a "choice no-fault" state, allowing drivers to select between limited and full tort coverage. Limited tort coverage limits your right to seek financial compensation for injuries and other losses when another driver causes an accident. Full tort coverage, on the other hand, gives you and your covered family members unlimited rights to seek financial compensation for injuries and other losses when another driver is at fault.

In order to step outside of the no-fault system and file a third-party insurance claim or car accident lawsuit against the at-fault driver, your injuries must meet certain thresholds set by state law. This is known as the "serious injury threshold".

The specific details of the serious injury threshold vary from state to state, but there are generally three ways to overcome the threshold and be able to file a personal injury claim:

• Proving that injuries resulted in death
• Proving that your injuries resulted in serious and permanent disfigurement or deformity
• Proving that your injuries resulted in significant and permanent loss of a bodily function

In Pennsylvania, limited tort policyholders can seek non-economic damages when their case falls under one of the six exceptions to the limited tort limits. These exceptions include:

• Accidents with drivers convicted of DUI or accepted into ARD
• Intentional collision by another driver
• Injuries sustained as pedestrians or in motorcycle/commercial vehicle accidents
• Being hit by a vehicle registered outside of Pennsylvania
• Accidents involving uninsured at-fault drivers

In addition to these exceptions, limited tort policyholders can also seek non-economic damages if they have suffered a "serious injury". A "serious injury" typically requires serious impairment of a body function, or permanent and serious disfigurement.

Frequently asked questions