Pa Auto Insurance, Understanding Your First Party Benefits
Unfortunately, I hear too many people using the phrase “no fault” while misinterpreting its application to insurance completely. The term has been used far too frequently and it’s no surprise that folks have picked up on its general meaning but have rarely been advised as to which coverage it applies to. I’ll try to help you understand it in easy to read language.
In Pennsylvania, the first party benefits portion of your pennsylvania auto insurance policy apply to:
? medical expenses
? funeral benefits
? accidental death benefit
? income loss.
These are only a few of the coverages you will find on your policy but they are the only coverages that are considered to be “no fault” coverages. The only one of these coverages that is required by Pa Law is the medical expense portion. A minimum medical expense limit of $5,000 is required for any policy issued in the state. Limits of up to $100,000 are available. All other first party benefit coverages are optional.
Understanding the meaning of the term “no fault” can be simply stated that “your policy” will respond to any injury that you sustain that is related to an automobile. With the exception of a commercial vehicle being used for work. Regardless of who is determined to be at fault, your coverage will pay for your medical expenses, work loss, funeral or accidental death that resulted from an automobile accident. Your insurance company is prohibited by law from recovering the expenses they have paid under “first party benefits” on your auto policy regardless of who is determine to be the negligent party.
A few of the odd examples I’ve encountered over my past 23 years in this business that were paid under my clients first party benefits coverage
? Insured cut the tip of finger off in the fanbelt while working on his car
? Insured had his foot run over by another car
? Insured stepped off the curb and was hit by a mirror of a passing car
? Insured shut his finger in friends car door
? Insured slipped on icy driveway and hit her head on the car when falling
Try to avoid getting your insurance advice from a 1-800 expert. Asking a friend or relative for a referral to someone knowledgeable in the business is always a good choice when looking for assistance.