Auto Insurance In Pennsylvania: Understanding Minimum Coverage Requirements

Pennsylvania is a no-fault state, which means that drivers are required by law to have Personal Injury Protection (PIP) as part of their auto insurance coverage. This provides medical coverage for the driver and their passengers in the event of an accident, regardless of who was at fault. In addition to this, drivers in Pennsylvania are also required to have auto liability coverage, which includes Bodily Injury Liability and Property Damage Liability.

Bodily injury liability insurance

Pennsylvania is a no-fault state, meaning that your own insurance covers your medical costs regardless of who caused the accident. Pennsylvania law requires that you carry Bodily Injury Liability limits of at least $15,000 per person and $30,000 per accident. The minimum required in PA is $15,000, although many people purchase higher coverage amounts, such as $50,000, $100,000, or $250,000.

When choosing your Bodily Injury Liability coverage limit, consider the value of your car and the amount you are comfortable spending in the event of an accident. Remember that with lower limits, you will be responsible for higher out-of-pocket costs if an accident occurs.

In addition to Bodily Injury Liability insurance, Pennsylvania law also requires you to have Property Damage Liability insurance of at least $5,000 per accident and Personal Injury Protection (PIP) insurance of at least $5,000 per person. You also have the option to choose between full tort and limited tort coverage, which affects your ability to sue another driver for damages like pain and suffering.

Property damage liability insurance

While carrying the state minimum coverage is an option, it's important to consider the potential risks. If you cause an accident and the damages exceed your policy limit, you will be responsible for paying the difference. This could result in significant financial burden, including future wages or liquidation of assets. Therefore, it's recommended to purchase higher coverage limits to protect yourself financially.

The cost of property damage liability insurance may vary depending on different insurance companies and their premium costs. It is advisable to shop around and compare rates to find the most suitable coverage for your needs.

In addition to property damage liability insurance, Pennsylvania law also requires drivers to carry bodily injury liability coverage and personal injury protection (PIP). The minimum bodily injury liability limits are $15,000 per person and $30,000 per accident. PIP provides medical coverage for you and your passengers in the event of an accident, regardless of fault, and the minimum required limit is $5,000 per person.

First-party benefits (FPB) insurance

In Pennsylvania, motorists are required to have a minimum of $5,000 in FPB medical benefits coverage per person. This coverage includes necessary medical, surgical, dental, psychiatric, psychological, and optometric treatment, as well as rehabilitative services, ambulance services, nursing services, medications, medical supplies, and prosthetic devices. FPB also covers lost wages due to disability resulting from injuries, funeral costs, and accidental death benefits.

While the minimum FPB coverage in Pennsylvania is $5,000, higher limits are available. For instance, drivers can purchase up to $100,000 in medical coverage and then further increase their protection under "extraordinary medical benefits," with coverage up to $1,000,000. Additionally, Pennsylvania offers an FPB combination package benefit (FPB CPB) that includes optional coverages for work loss, funeral benefits, and accidental death.

The purpose of FPB/PIP insurance is to ensure that injured individuals receive immediate medical care and compensation without the need for arbitration or litigation. By choosing FPB/PIP coverage, drivers give up their right to sue another driver for injuries and emotional pain and suffering, unless the injuries are severe, such as disfigurement or permanent disability. FPB helps streamline the claims process and provides swift financial assistance for medical and related costs after a car accident.

Uninsured/underinsured motorist coverage

Uninsured motorist coverage comes into effect when you are hit by a driver with no auto insurance. It covers your injuries, your passengers' injuries, and damage to your vehicle. If you are struck by an uninsured driver, uninsured motorist bodily injury (UMBI) coverage will pay for medical bills for you and your passengers, while uninsured motorist property damage (UMPD) coverage will take care of repairs to your vehicle.

Underinsured motorist coverage, often offered alongside uninsured coverage, comes into play when the at-fault driver doesn't have sufficient insurance to cover the damages or injuries they caused. Underinsured motorist bodily injury (UIMBI) coverage handles medical bills, while underinsured motorist property damage (UIMPD) coverage takes care of vehicle repairs.

In Pennsylvania, if you choose to include uninsured/underinsured motorist coverage in your policy, there is a minimum limit of $15,000 per person and $30,000 per accident. This means that if two passengers collect the full $15,000 per person, the $30,000 per-accident limit will be reached.

It's worth noting that some states require a deductible for UMPD/UIMPD coverage, but UMBI/UIMBI generally doesn't include a deductible. Additionally, in some states, uninsured motorist coverage for property damage (UMPD) will not cover hit-and-run incidents, so you may need collision coverage for those scenarios.

While not mandatory in Pennsylvania, uninsured/underinsured motorist coverage can provide valuable financial protection in the event of an accident with an uninsured or underinsured driver, helping to cover medical bills and vehicle repairs.

Tort coverage

The cost of your premium in Pennsylvania may be influenced by whether the state operates under a fault or no-fault system. Pennsylvania is a choice no-fault state, allowing drivers to choose between a no-fault or traditional coverage system when they purchase their policy. As a no-fault state, Pennsylvania requires you to have Personal Injury Protection (PIP), which provides medical coverage for you and your passengers if there's an accident, no matter who was at fault. This is different from Liability coverage, which covers bodily injury and property damage that you cause to another driver or their passengers when you are at fault.

When choosing your tort coverage, consider your unique needs and financial situation. If you feel that you would want unrestricted rights to sue in the event of an accident, then a full tort policy may be the best option for you. On the other hand, if you are looking for a more affordable option and are comfortable with limited rights to sue, then a limited tort coverage policy may be sufficient.

In addition to tort coverage, Pennsylvania law requires that you carry Bodily Injury Liability limits of at least $15,000 per person and $30,000 per accident. You must also have Property Damage Liability limits of at least $5,000. As a no-fault state, Pennsylvania also requires a minimum of $5,000 of Personal Injury Protection per person on your insurance policy.

Frequently asked questions