Pennsylvania is one of around a dozen US states with no-fault insurance laws, which means that after a car accident, your own insurance coverage pays for your medical treatment and other out-of-pocket losses, regardless of who caused the accident. Pennsylvania's no-fault system is unique in that vehicle owners can opt out of the no-fault system when purchasing a car insurance policy. Drivers must choose between limited tort and full tort coverage. Limited tort coverage limits your right to financial compensation for injuries and losses when another driver causes an accident, whereas full tort coverage gives you and your family unlimited rights to financial compensation.
What You'll Learn
Pennsylvania's choice no-fault system
Pennsylvania operates a "'choice no-fault' system, one of only three states to do so, alongside New Jersey and Kentucky. This system allows drivers to choose between "limited tort" (no-fault) and "full tort" (at-fault) coverage. This decision impacts their ability to sue for non-economic damages like pain and suffering.
Under the no-fault system, your insurance company pays for your damages, regardless of who caused the accident. This includes medical expenses, loss of income, and other miscellaneous expenses for all vehicle occupants and pedestrians injured by an insured vehicle within the state. However, it does not cover physical damage to your car or other personal property.
Limited tort coverage is cheaper, but it limits your ability to sue for pain and suffering unless your injuries are severe. Full tort coverage, on the other hand, allows you to sue the at-fault party for a wider range of damages, including economic and non-economic losses. It is important to note that insurance companies are required to inform customers of their coverage options when it comes to opting in or out of the no-fault system.
Pennsylvania's mandatory insurance requirements include a minimum of $5,000 in no-fault medical benefits coverage, $15,000 in bodily injury liability insurance per person ($30,000 total coverage per accident), and $5,000 in property damage liability insurance.
In summary, Pennsylvania's choice no-fault system gives drivers the flexibility to choose between limited and full tort coverage, each offering distinct advantages and disadvantages in terms of compensation rights and premium costs.
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Limited tort coverage
In Pennsylvania, drivers are required to choose between "limited tort" and "full tort" coverage when buying car insurance. Limited tort coverage is a no-fault insurance system where the insurance company pays for damages, regardless of who caused the accident. This type of coverage limits the policyholder's right to seek financial compensation for 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. They can seek these damages if they have suffered a "serious injury" or meet certain legal exceptions.
Under limited tort coverage, a claimant may seek recovery for all medical treatment and other out-of-pocket losses caused by the accident. However, they cannot seek compensation for pain and suffering or other non-monetary losses unless the car accident injuries qualify as "serious." According to Pennsylvania law, a "serious injury" typically involves serious impairment of a body function or permanent and serious disfigurement.
It is worth noting that limited tort coverage only applies when the driver or passengers have been injured in an accident that is not their fault. In such cases, the victim can bring charges against the at-fault driver to sue for unpaid medical bills, property damage, loss of income, and pain and suffering.
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Full tort coverage
Pennsylvania is one of the few states that follow a "choice" no-fault car insurance system, where drivers can choose between "limited tort" and "full tort" coverage. While limited tort coverage is cheaper, it limits your right to sue for pain and suffering unless your injuries are severe. On the other hand, full tort coverage, which is more expensive, gives you and your family members unlimited rights to sue for financial compensation for injuries and other losses when another driver causes an accident.
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. It is important to note that insurance companies are required to inform customers of their coverage options when it comes to opting in or out of the no-fault system.
The choice between limited tort and full tort coverage depends on your risk tolerance and budget. Limited tort coverage offers cheaper monthly premiums, but you give up certain rights to sue. Full tort coverage, on the other hand, provides more comprehensive compensation rights but usually comes with higher premiums.
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Mandatory insurance requirements
Pennsylvania is a no-fault state, which means that each driver carries their own coverage for personal injury and property damage that occurs in an accident. Each driver's policy pays for their own costs, regardless of who is at fault. This reduces the likelihood of ending up in court or delaying medical treatment due to an inability to pay hospital bills.
Pennsylvania's no-fault system is unique in that vehicle owners can opt out of the no-fault system when purchasing a car insurance policy. This is known as the "choice" no-fault system, where drivers can select between limited and full tort coverage. Limited tort coverage limits your right to financial compensation for injuries and losses caused by another driver, whereas full tort coverage gives you unlimited rights to financial compensation.
The mandatory insurance requirements in Pennsylvania are as follows:
- $5,000 in no-fault "medical benefits" coverage, which pays for the medical bills of the policyholder and their passengers, regardless of who is at fault in an accident.
- $15,000 for bodily injury liability per injured person.
- $30,000 total bodily injury liability per accident.
- $5,000 per occurrence property damage protection.
Pennsylvania also requires drivers to carry at least $5,000 in Personal Injury Protection (PIP) per person on their insurance policy. PIP covers medical costs, rehabilitation, replacement services, and lost wages for the driver and their passengers, regardless of who is at fault.
In addition to these mandatory insurance requirements, drivers in Pennsylvania have the option to purchase additional coverage, such as comprehensive and collision insurance, to protect their vehicles in the event of an accident.
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Compensation options
Pennsylvania is a no-fault state, which means that your insurance company pays for your damages, regardless of who caused the accident. This is also known as "medical payments" coverage. However, there is a limit to the amount that can be claimed, and if your injuries are serious or there is extensive property damage, you may need to seek further compensation outside of the no-fault system.
Limited Tort Coverage
Limited tort coverage is a no-fault insurance system, which is cheaper but limits your ability to sue for pain and suffering unless your injuries are severe. In the event of an accident, you can seek recovery for all medical treatment and other out-of-pocket losses caused by the accident, but not for pain and suffering or other non-monetary losses, unless the car accident injuries are serious. This includes serious impairment of a body function or permanent and serious disfigurement.
Full Tort Coverage
Full tort coverage is more expensive but gives you and your covered family members unlimited rights to sue for a wider range of damages. This includes the cost of all medical treatment and other covered out-of-pocket losses, as well as pain and suffering and other non-monetary losses stemming from the accident, even if your injuries are not serious.
Mandatory Insurance Requirements in Pennsylvania
Pennsylvania law mandates that all vehicle owners must have a basic level of coverage, including:
- $15,000 for injury or death to one person in an accident
- $30,000 for injury or death to more than one person
- $5,000 for property damage
- $5,000 medical benefits coverage
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Frequently asked questions
No-fault auto insurance in Pennsylvania, also known as "choice no-fault" insurance, allows drivers to choose between limited and full tort coverage. Limited tort coverage is a no-fault system where your insurance company pays for your damages, regardless of who caused the accident. Full tort coverage is more expensive and aligns with the traditional at-fault insurance system, allowing you to 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" or meet other legal exceptions. It is cheaper than full tort coverage, with premiums approximately 15% lower.
A "serious injury" typically involves serious impairment of a body function or permanent and serious disfigurement.
Full tort coverage gives you unlimited rights to seek compensation for injuries and other losses, including economic and non-economic damages, when another driver causes an accident.
In Pennsylvania, vehicle owners must have liability insurance with coverage of at least $15,000 for injury or death per person, $30,000 total coverage per accident, and $5,000 for property damage. Additionally, drivers must carry at least $5,000 in medical benefits coverage.