Pennsylvania auto insurance
Pennsylvania Auto Insurance
Insurance Laws for Automobiles
The Commonwealth of Pennsylvania states that all owners of automobiles have to by law, purchase and maintain insurance coverage for their cars. The same has been stipulated under Act 6 Amendments to the Pennsylvania Motor Vehicle Financial Responsibility Law, “MVFRL”. Whether you are an owner, driver or passenger, it is important for you to understand the role Pennsylvania auto insurance plays.
There are various types of insurance coverage’s. Listed below are the most important ones:
Liability Coverage
As per Pennsylvania auto insurance laws, it is mandatory for you to purchase this policy as part of your auto insurance policy. It offers you protection from claims made against you. If you have been involved in an accident and are responsible for hurting another, Liability Coverage will used to compensate the injured party.
The law states that you have to purchase minimum coverage of at least $15,000 per individual and $30,000 per incident. Policies of higher amounts are also available and can be purchased at your discretion.
First Party Coverage
Earlier referred to as Personal Injury Protection (PIP) is another coverage that you compulsorily have to purchase. This is effectively your medical insurance. It will be used to cover your medical costs. The minimum coverage is $5000. Irrespective of who were at fault when the accident occurred, if you need medical attention your bills will be taken care of by First Party Coverage. If treatment exceeds $5000, your health insurance will be used to cover the balance
Collision Coverage
Pennsylvania auto insurance states that this could be an optional coverage and can be used towards paying for damages done to your vehicle. This usually comes with a deductible. A deductible works like this – a certain amount is fixed as ‘deductible’. In the unfortunate event of an accident, you are liable to pay up to the extent of the deductible amount and your insurance company will pay the rest of the charges. A large deductible amount ties in with a lower premium. Your decision on whether to buy a collision coverage or not and the amount of deductible component should be based on the age of your car, its replacement value and its “blue book” price. If your vehicle is damaged beyond repair due to an accident, the insurance company will only offer the blue book price, which may not be sufficient to purchase a new car.
Comprehensive Coverage
Very similar in scope to Collision Coverage, the difference being that this covers damage to vehicle through theft or any other kind of accident not related to collision with another vehicle
Uninsured Motorist Coverage
As per Pennsylvania auto insurance laws, this is an optional but very important form of coverage. It covers you if you are hurt by a driver and/or an automobile that is uninsured. As there are several uninsured drivers on the road, do not overlook this option. Uninsured Motorist Coverage can be purchased in amounts that equal your Liability Coverage or are even a shade less.
Under-Insured Motorist Coverage
Comparable to Uninsured Motorist Coverage, it comes into play only if you have been hurt and it was solely the fault of the other driver. Further, the other party is not adequately covered by insurance to reimburse you for your injuries