Common Rules Surrounding Pennsylvania Auto Insurance

Auto insurance remains an expense most drivers begrudgingly pay. Then, after they are involved in an accident, they realize that auto insurance is quite beneficial to their financial well being. Yes, auto insurance allows one to avoid incurring enormous expense.

If there was one thing auto insurance was not, however, it would be universal and standardized. Specifically, different states have different requirements for insurance. Pennsylvania, for example, has a number of rules and regulations that are specific for cars registered in its territorial boundaries.

In particular, all vehicles in Pennsylvania must carry liability insurance. This is the type of insurance that covers the driver when he/she is completely at fault for any accident that occurs. This is probably the one type of policy that is universal through all 50 states. If there was one area where Pennsylvania stood out as unique it would center on the issue of "No Fault" insurance. Specifically, No Fault insurance is designed to provide coverage for all medical expenses incurred whether or not the driver is at fault for the accident. While such insurance is provided in all 50 states, Pennsylvania has more requirement compelling insurance providers to offer it.

Pennsylvania is known its rule of "15/30/5" coverage. This refers to the basic, minimum insurance requirements needed to operate a vehicle. In short, a driver must possess $15,000 worth of coverage for every injured person in the vehicle up to a maximum of $30,000. (This is to say you would not be mandated to cover 6 injured people at $90,000 although you certainly could purchase such a policy if you wished) The "5" in 15/30/5 refers to the monetary amount of insurance coverage for property damage and medical expenses. In other words, the driver’s insurance must cover a minimum amount of $5,000 to cover property damage and $5,000 for medical expenses.

Also, under Pennsylvania law it is mandated that your policy has a limited tort option. That is, you must have coverage that provides compensation for out of pocket expenses related to damages and medical care. However, if you wish to receive compensation for pain and suffering, mental duress, or other areas not covered in limited tort coverage then you will need to purchase full tort coverage.

Unlike some states, however, uninsured/underinsured motorist coverage is not mandatory. Many drivers opt to purchase it because it provides coverage if you are hit by a motorist who is either without insurance or whose policy provides minimal coverage.