Pennsylvania Auto Insurance: What You Need To Know

Vehicle insurance in Pennsylvania is a no-fault insurance, meaning that if you get into an accident, your insurance will reimburse you for any hospital or medical expenses, wage losses from an inability to work, and funeral costs, regardless of who is responsible for the accident. The average cost of car insurance in the state is $1,395 annually, but this can vary depending on factors such as age, location, driving history, and credit score.

Pennsylvania law requires drivers to carry a minimum amount of car insurance, including bodily injury liability, property damage liability, and medical benefits coverage. The minimum coverage limits are $15,000 per person for bodily injury, $30,000 total per accident, and $5,000 for property damage. Residents must also choose between limited and full tort coverage. Limited tort restricts the insured's right to seek financial compensation for pain and suffering due to injury in an accident, while full tort allows the insured to seek financial compensation for pain and suffering if they are not at fault.

When purchasing car insurance in Pennsylvania, residents can choose from a variety of insurance providers, including Travelers, State Farm, Progressive, Geico, Nationwide, and Auto-Owners, among others. These companies offer different rates, coverage options, and discounts, so it is essential to compare quotes and find the best option for your needs and budget.

Minimum insurance requirements

Pennsylvania is a no-fault state, meaning that all drivers must use their own insurance to cover their own costs if an accident occurs, regardless of who is at fault. This includes hospital expenses, wage losses from an inability to work, and funeral costs.

When buying auto insurance in Pennsylvania, you need at least the state's required minimum amount of $15,000/$30,000/$5,000. This means that in the event of an accident, if you are at fault, you are covered up to $15,000 for bodily injury for each person involved, with a total maximum of $30,000 per incident. It also covers up to $5,000 for damage to another person's property.

There are two types of liability coverage that your insurance policy must include:

• Property damage coverage safeguards your assets if you are found legally responsible for a covered accident. It covers certain damage you may cause to the property or vehicle of another party.
• Bodily injury coverage safeguards your assets if you are found legally responsible for a covered accident, including certain expenses associated with bodily harm sustained by the other parties.

In addition, you'll also need a first-party benefit (FPB) or personal injury protection (PIP) of at least $5,000 per accident to cover your medical costs due to an accident, regardless of who is at fault.

You also have to select a tort option:

• Limited tort restricts your right to sue another driver for non-monetary damage except for extreme circumstances concerning death or permanent disfigurement.
• Full tort allows you to sue for any post-accident-related pain and suffering, but usually comes at a higher premium.

Tort coverage options

Pennsylvania offers two tort coverage options: limited tort and full tort.

Limited Tort Coverage

Limited tort coverage restricts the compensation a person can get from a case. Under this option, you can receive compensation for monetary damages, including medical bills, lost wages, and other out-of-pocket expenses. However, you cannot sue for pain and suffering or general damages unless you have suffered a "serious injury" or certain exceptions apply. Limited tort coverage is typically much cheaper than full tort coverage, saving you 10 to 15% on premiums.

Exceptions to Limited Tort Coverage

There are several exceptions where limited tort coverage does not apply, and you can sue for pain and suffering:

• The driver at fault was under the influence of alcohol or drugs and was convicted of driving under the influence (DUI) or accepted an Accelerated Rehabilitative Disposition (ARD).
• The driver at fault was uninsured or did not have the required financial responsibility as per Pennsylvania law.
• The driver at fault was operating a vehicle registered in a state other than Pennsylvania.
• The accident involved a pedestrian, a bicyclist, or a passenger on a commercial vehicle or a motorcycle.
• The person at fault intended to cause harm or injury.

Full Tort Coverage

Full tort coverage gives the injury victim an unrestricted right to seek compensation for injuries from the at-fault driver. With full tort, you can sue for medical expenses, lost wages, property damage, and non-economic damages, including pain and suffering. Full tort coverage is more expensive than limited tort, with premiums approximately 15% higher.

Optional coverages

When it comes to optional coverages for car insurance in Pennsylvania, there are several options to consider. Here are some of the most common ones:

Comprehensive Coverage

This type of coverage protects your car from damage that is not related to a collision with another vehicle. This includes natural disasters, storms, fires, vandalism, damages caused by hitting an animal, and more. For example, if your car is damaged in a hailstorm or a tree falls on it during a storm, comprehensive coverage would help pay for the repairs.

Collision Coverage

Collision insurance covers the cost to repair or replace your car after a collision with another vehicle or a stationary object. It's important to note that collision coverage only applies to your car or someone else's car that you are driving with the owner's permission. It does not cover damage to other vehicles involved in the accident. Additionally, mechanical breakdowns and wear and tear are typically not covered by collision insurance.

Uninsured and Underinsured Motorist Coverage

This type of coverage protects you, anyone you allow to drive your car, household members, and passengers if you are in an accident with an uninsured or underinsured driver. Uninsured drivers are those who do not have any insurance, while underinsured drivers have liability insurance but not enough to cover the injuries or damages they cause. This coverage can help pay for medical bills and other expenses that arise from the accident.

Substitute Transportation Coverage

If your car is being repaired due to a covered claim, this type of coverage can help you with the cost of a rental car or other substitute transportation. The coverage limits for this option vary, with daily rental amounts ranging from $15 to $100 and maximum coverage limits ranging from $450 to $3,000.

Medical Payments Coverage

In addition to the mandatory personal injury protection (PIP) or medical benefits coverage, you can choose to add coverage for medical payments. This optional coverage pays for reasonable expenses for necessary medical and funeral services incurred by anyone occupying your vehicle as a result of an accident. It also covers you and any household members if you are struck by a vehicle or while occupying someone else's car during an accident. The coverage limits typically range from $1,000 to $25,000.

Loan/Lease Gap Insurance

If you total your car and the cost of repairing it exceeds its actual cash value, loan/lease gap insurance can help cover the difference. In the event of a covered collision or comprehensive loss, this coverage will pay the gap between the actual cash value of your vehicle just before the accident and the remaining balance on your loan or lease. This can help you avoid being burdened with payments for a vehicle that is no longer usable.

Discounts

When it comes to auto insurance in Pennsylvania, there are a number of discounts available to help reduce your premium. Here are some of the most common discounts offered by insurance providers in the state:

• Multi-car insurance discounts: If you insure more than one vehicle with the same insurance company, you may be eligible for a discount.
• Multi-policy or bundling discounts: You can often get a discount by bundling your car insurance with another type of insurance policy, such as home or renters insurance, from the same company.
• Membership discounts: Some insurance companies offer discounts to members of certain organizations or groups, such as alumni associations, professional organizations, or clubs (like AAA).
• Good driving discounts: If you have a history of driving without accidents or traffic violations, you may qualify for a good driving discount.
• Usage-based discounts: If you don't drive your vehicle frequently, you may be eligible for a low-mileage discount, as driving less often reduces the risk of accidents.
• Defensive driving discounts: Completing an approved defensive driving course may result in a discount on your premium.
• Good student discounts: Full-time students who maintain a certain grade point average may be eligible for a discount on their car insurance.
• Military discounts: Many insurance companies offer discounts to active-duty military personnel, veterans, and their families.
• Anti-theft device discounts: If you have an anti-theft device installed in your car, you may be able to get a discount on your insurance. The savings may vary depending on the type of device installed.
• Safe driver discounts: Maintaining a clean driving record for a certain number of years (usually 5 or more) can often lead to a discount on your premium.
• Accident-free discounts: If you have an accident-free driving record, you may be able to earn a reduction in your monthly premium, sometimes up to 10%.
• Recurring bill pay discounts: Setting up monthly recurring bill payments from your checking or savings account may qualify you for a one-time discount.
• Home and auto bundling discounts: Bundling your home and auto insurance policies with the same company can often result in significant savings, sometimes up to 20%.

It's important to note that the availability and eligibility requirements for these discounts may vary depending on the insurance provider and your specific circumstances. Be sure to review the discounts offered by your insurance company and ask about any discounts for which you may qualify.

Teen driver laws

In Pennsylvania, you must be at least 16 years old to apply for a learner's permit. Before applying, you must undergo a physical examination by a medical professional to verify that you are medically fit to operate a vehicle. The "Medical Qualification Certificate" section of Form DL-180 must be completed by the medical professional.

Once you have obtained a learner's permit, you may drive on the roads with certain restrictions. You must be accompanied by a licensed driver who is at least 21 years old, or a parent, guardian, or spouse who is at least 18 years old and licensed, with the same or higher class of vehicle that appears on the learner's permit. You must complete 65 hours of adult-supervised skill-building, including 10 hours of nighttime driving and 5 hours of bad-weather driving. This does not apply to motorcycle learners. You may not drive between 11 pm and 5 am, except for employment, volunteer, or charitable service, and you must carry proper documentation for this. You may not drive out of state, and the number of passengers must not exceed the number of seat belts in the vehicle. A learner's permit is valid for one year and may be renewed upon request.

To obtain a junior driver's license, you must be under 18 and have held a learner's permit for at least six months, with at least 65 hours of driving, including 10 hours of night driving and 5 hours of bad-weather driving. Those 18 or older can take the test without these requirements. A junior license holder must follow certain restrictions, including not driving between 11 pm and 5 am unless accompanied by a parent, guardian, or spouse over 17. If you are driving during these hours for employment, volunteer, or charitable reasons, you must carry a notarized affidavit as proof. If you are involved in an accident for which you are partially or fully responsible, or if you commit certain moving violations, your junior license may be suspended until you are 18 or for up to 90 days. If you accumulate six or more points or are convicted of driving 26 mph or more over the speed limit, your license will be suspended for 90 days for the first offence and 120 days for subsequent offences.

Teens with a junior license without a parent in the vehicle can have only one friend or similar person under 18 (who is not a member of the household) as a passenger. If you do not have an accident for six months, you will be allowed to carry up to three passengers with the same criteria. All passengers must wear seat belts, and it is the driver's responsibility to ensure this. Failure to comply is a primary offense, and a police officer can issue a fine of $75, even if no other traffic violation has occurred.

Frequently asked questions