Pennsylvania car insurance laws require bodily injury liability coverage of $15,000 per person and $30,000 per accident, as well as $5,000 of property damage liability coverage. State law also requires $5,000 of Medical Benefits coverage.
The first two categories - bodily injury liability and property damage liability - cover injuries or damages that you accidentally cause with your car. Your car insurance pays up to a specified limit for each category. If you want additional coverage, you can choose higher limits than the ones required by Pennsylvania law. The last category, Medical Benefits, handles your medical bills even if you cause a car accident.
As insurance is required by Pennsylvania law, you can face multiple penalties if you’re caught driving without it, including up to $300 in fines, license suspension and impounding of your car. Another important Pennsylvania car insurance law to note is the grace period for new residents: You have 20 days to register your car when you move to Pennsylvania. You’ll need to bring proof of Pennsylvania car insurance when you go to register.
PA “Choice” No-Fault Car Insurance Laws:
Pennsylvania uses a no-fault system for car insurance by default, but it is one of three "choice” no-fault states. This means the state allows residents to choose whether they want to take part in the traditional no-fault system or opt for a tort-like system, similar to what’s used in many other states.
The traditional no-fault system limits accident-related lawsuits, which means each driver is initially responsible for their own medical bills – regardless of who caused the accident. But drivers in Pennsylvania can choose to sue or be sued after a car accident by opting out of the no-fault system. This means drivers can file a lawsuit after an accident in order to recover damages solely from the person who caused the crash. However, those who select this option typically pay higher insurance premiums, and they open themselves up to be sued if they cause a crash.
Minimum Coverage Required by Pennsylvania Car Insurance Laws:
- Bodily injury liability: $15,000 per person and $30,000 per accident
- Property damage liability: $5,000
- Medical Benefits: $5,000
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