Liability insurance pays for others’ medical expenses and property damage after an accident you were responsible for. In addition, drivers in Pennsylvania will need to purchase $5,000 in medical benefits to satisfy the state’s minimum car insurance requirements.
If Pennsylvania drivers do not purchase at least the minimum amounts of car insurance coverage required by Pennsylvania law, they can face penalties for driving without insurance.
Drivers should also consider purchasing other types of car insurance in order to better protect themselves, given that liability insurance does not provide any coverage for the policyholder’s own injuries or property. For instance, both collision insurance and comprehensive insurance cover damage to the policyholder’s car. You will likely also need these types of insurance if your vehicle is financed.
You need enough liability insurance to cover your net worth. Having coverage equal to the value of the assets you own and all the money you have, minus your debt, protects you financially in case of a serious car accident.
When to Carry Only the Minimum Liability Coverage
Although almost every state requires drivers to carry liability insurance, the minimum coverage is not always enough to cover the cost of an accident. It’s always best to carry as much liability coverage as you can afford, especially if you have a high net worth. You can generally get away with a lower property damage liability limit if you want to save, however, since property damage liability claims are usually less expensive than bodily injury liability claims.… read full answer
If you don’t have many assets or think the risk is worth it, you might be comfortable with carrying only the minimum coverage. But no matter what, make sure you’re carrying enough insurance to comply with state law and avoid paying fines for driving uninsured.
Liability Limits on Auto Insurance
Liability limits on auto insurance are the maximum amount that your insurance company will pay for injuries and property damage in accidents that you cause. Liability limits are typically written as three numbers divided by slashes.
For example, Arizona’s liability coverage requirements are 50/30/10. That means drivers need to carry $50,000 in bodily injury liability coverage per person, $30,000 in bodily injury liability coverage per accident, and $10,000 in property damage liability coverage overall.
Why You Need More Liability Insurance Than the State Minimum
Your insurance company will never pay for anything beyond the limits of your policy. Using the Arizona example, if you cause an accident that leads to $70,000 in medical bills for the other driver, you will have to pay for $40,000 if you are only carrying the minimum insurance required. And if you can’t afford to pay the full amount, the other driver can sue, and you can have your assets seized or wages garnished to cover the remainder.
No, uninsured motorist coverage is not required in Pennsylvania, as drivers can reject the coverage in writing. Still, insurance companies are required to offer at least $15,000 in uninsured motorist bodily injury coverage per person (up to $30,000 per accident).
Additionally, drivers have the option to purchase $15,000 in underinsured motorist bodily injury coverage per person (up to $30,000 per accident).… read full answer
For Pennsylvania drivers who do not opt out by rejecting the coverage in writing, uninsured/underinsured motorist coverage helps pay for a car accident in which the other driver doesn’t have car insurance, or doesn’t have enough coverage for the damage they caused.
Why You Should Get Uninsured Motorist Coverage in Pennsylvania
Normally, an at-fault driver’s insurance helps pay for any damage after an accident. However, if the other driver doesn’t have any – or enough – coverage, it can be time-consuming and difficult to sue them for funds to cover any medical or repair bills. That’s where this optional insurance coverage can help you save time and money.
Even though Pennsylvania does not require uninsured and underinsured motorist coverage, you should still consider buying it. In Pennsylvania, an average of 8% of drivers on the road don’t have car insurance, which means there is a 1 in 12 chance that the other driver won’t have coverage if you get into an accident. Car accidents in Pennsylvania can be very expensive, too.
Key Facts About Uninsured Motorist Coverage in Pennsylvania:
Minimum Uninsured Motorist Bodily Injury: $15,000 per person and up to $30,000 per accident
Minimum Underinsured Motorist Bodily Injury: $15,000 per person and up to $30,000 per accident
Personal injury protection (PIP) is not required in Pennsylvania, though drivers are required to have at least $5,000 in medical benefits coverage to pay for medical expenses stemming from an accident. Medical benefits coverage is similar to PIP, since it covers medical costs regardless of fault.
Medical benefits coverage helps ensure that everyone on the road in Pennsylvania has some financial assistance for medical payments in the event of a collision. Drivers in all no-fault states are required to have some type of medical coverage for their own injuries because they are restricted in terms of when they can sue another driver for compensation after an accident. That means medical benefits insurance (or PIP/… read full answerMedPay coverage in other states) is the first line of defense for drivers who face hospital bills or a long recovery from an injury.
Car insurance usually costs more in states that require insurance for injuries regardless of fault, and Pennsylvania is no exception - Pennsylvania drivers pay an average of $1,819 per year. Car insurance in Pennsylvania is expensive because it's a no-fault state with a high population density.
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