In the event of an accident, you have several different possibilities that can come into play. In Pennsylvania car insurance, there are certain state required coverages and also optional coverages that may be included in your vehicle policy.
Pennsylvania’s required coverages
Bodily Injury Liability — If you are the at-fault driver in an accident, this coverage will pay the medical and rehabilitation expenses for anyone injured in the accident, and any damages for which you are found liable. The minimum limit is $15,000/$30,000. The $15,000 pays for injuries to one person, while the $30,000 represents the total available for one accident. This is a minimum amount; it is recommended that you carry at least 100,000/300,000.
Medical Benefits — This coverage pays the medical bills for you and others who are covered by your policy, regardless of fault. The minimum limit is $5,000 of coverage, but higher limits are recommended.
Property Damage Liability — This coverage will pay if you are the at-fault driver and you damage someone’s property in an accident. The minimum limit is $5,000 of coverage.
Limited or Full Tort — You can choose to have full or limited tort coverage. Limited tort coverage will save you money on your premiums. You will still be able to recover all out-of-pocket medical and other expenses in the event that you win a court case; however, you will not be able to recover certain damages – such as payments for pain and suffering – unless the injuries meet one of the exceptions to limited tort defined in the Pennsylvania Code. With full tort coverage, your rights are unrestricted in the event that you bring suit against the negligent party in the event of an accident.
Pennsylvania ’s optional coverages
In addition to the required coverages detailed above, automobile insurance companies offer a variety of optional coverages which include:
Uninsured Motorist (UM) — This option covers you, your family, and your passengers for bodily injury if you are involved in an accident caused by an at-fault uninsured motorist.
Underinsured Motorist (UIM) — This option covers you, your family, and your passengers for bodily injury if you are involved in an accident caused by an at-fault uninsured motorist who does not have enough insurance to cover your claim.
Funeral Benefit — The funeral benefit will pay up to a certain dollar amount for funeral expenses if you or a family member dies as a result of an auto accident.
Income Loss — If you are involved in an accident and unable to work due to injuries, this coverage will pay a portion of your lost wages.
Collision — Collision coverage pays the cost of repairing the damage to your car due to an accident. Most banks or lenders require you to carry collision coverage in order to receive a car loan. A $500 deductible is standard, unless you request a lower amount. However, the higher your deductible, the lower your premium will be.
Comprehensive — Comprehensive insurance covers theft or damage to your car from hazards such as fire, flood, vandalism, or a collision with an animal. Like collision coverage, most banks or lenders require this coverage if you have a car loan.