Automobile Insurance Minimums in Pennsylvania
Owners of motor vehicles in the Commonwealth of Pennsylvania are required by law to purchase and maintain automobile insurance. The laws relating to automobile insurance coverage are compiled in 75 Pa.C.S.A. ßß1701 et seq., commonly known as the Act 6 Amendments to the Pennsylvania Motor Vehicle Financial Responsibility Law, "MVFRL.
Liability Coverage is mandatory if you are required to purchase auto insurance. Liability protects you from claims made against you. If an accident is your fault and you have caused damage or injury to others, your liability insurance is available to compensate the injured party.
The minimum liability coverage by Pennsylvania law requires is $15,000.00 per individual and $30,000.00 per incident. It is typically written as "15/30″. Higher limits are available and should be purchased if you have assets to protect. If a claim for injuries is made against you and the value of the claim is greater than the limits of your policy, the injured party can accept your policy limits and release you from further claims, or more likely pursue the claim against you personally for damages in excess of your policy limits. So over and above the minimums, you should buy sufficient liability coverage to protect your assets residence, savings accounts, investments, wages, etc.
If you cause an accident injuring someone, and your insurance company pays money on your behalf to settle the claim against you, your insurance carrier can cancel your policy, raise your premium rates or at least attach a surcharge to your premiums.
First Party "PIP" Coverage
First Party Benefits (aka Personal Injury Protection, or PIP) is also mandatory in Pennsylvania. This is a no-fault type of medical insurance to pay for your own medical bills. The minimum is $5,000.00. Using PIP will not affect your rates or premiums. If you exhaust your PIP limit of coverage, excess medical overage can be submitted to your health insurance carrier. If you have health insurance, then the $5,000.00 minimum PIP limit should be adequate. If you do not have health insurance, the minimum PIP limit should be sufficient..
Optional Coverages:
Collision Coverage
Collision pays for any damage done to your vehicle and always has a deductible. A higher deductible will reduce your premium. If the accident was not your fault, your insurance company could demand your deductible from the responsible party and reimburse you. If you can afford a high deductible, your car is old, has low "blue book" value or replacement value consider waiving collision. If your car is totaled, the insurance company will only pay you the blue book value (or less) and not what it would cost for you to purchase a new car.
Comprehensive Coverage
Comprehensive provides protection if your vehicle is stolen or damaged in ways other than being in an accident with another vehicle. Like Collision, if your car is old or low value, it probably isn't worth getting.
Uninsured Motorist
"UM" is very important in case you are injured by a driver that is uninsured. With a huge number of uninsured drivers in Pennsylvania, do not skip this option. If you can afford it, consider purchasing at least $100,000.00/$300,000.00 limits. If you are injured by an uninsured driver, this is the only benefit available to you..
Under-insured Motorist
"UIM", is similar Uninsured Motorist but it only applies in Pennsylvania if you are injured, it wasn't your fault, and the other party didn't carry enough insurance to adequately compensate you for your injuries. Usually you will get compensated from this option if the responsible party had the state minimum policy of 15/30 and your injuries exceed that amount. Since there are probably as many under insured drivers as uninsured drivers, do not waive this option, and buy in the same amounts as "UM" coverage.