Often there are questions people have about what is required for their car insurance in Pennsylvania. These can even include how to have the most protection for the least amount of money. Additionally, it is difficult to understand the differences between Full Tort and Limited Tort options. The following will attempt to answer the five most common questions about car insurance in Pennsylvania.
- I just purchased a new car, can I drive until I find car insurance.
The answer is a definite NO. Car insurance is mandatory in Pennsylvania. All drivers in the household must have coverage, even if they have their own vehicles. It is the law. You risk losing your driving privileges and a mandatory 3-month suspension once insurance is in place.
- What is the difference between Full Tort and Limited Tort options?
Just as it sounds, the greatest difference between the two is full coverage means you can receive the full amounts from an accident, including pain and suffering, but limited coverage places limits on what you will receive. Therefore, Full Tort has a higher premium and Limited Tort has a lower premium. Talk with your insurance agent to determine what best meets your needs because once selected it cannot change even when renewed.
- Why are my premiums so much higher since I moved?
Pennsylvania allows car insurance companies to charge more in areas where they have paid out more claims. This does not mean you moved to a bad neighborhood, in fact it can sometimes be the opposite. Vehicles that are more expensive receive damage or theft in neighborhoods where homes are cost more because people can afford the expense.
- I do not understand all the terms in my policy, what can I do.
The first call should be to your insurance agent. They work with insurance policies all the time and can usually answer your questions. If you still have questions then calling or writing the Pennsylvania Insurance Department Bureau of Consumers Services can answer questions.
- Can my car insurance company cancel or refuse to renew my policy?
The answer is a definite YES! While no company can discriminate for any reason due to age, marital status, occupation, or gender they can cancel or refuse renewal for late or missed payments, suspensions, moving violations, or accidents.
Late or missed payments are one of the biggest reasons for cancellations or non-renewals. Pennsylvania does not require car insurance companies to give a grace period. Moreover, since most missed payments lead to suspensions it makes it quite easy for them to cancel the policy.
The best way to assure they always receive your payments on time is through automatic deductions. Then just make sure you are never overdrawn. This also saves you the expense of $300.00 for reinstatement of driving privileges. Pennsylvania wants all drivers to be financially responsible.
Some moving violations, such as driving under the influence, can have an automatic suspension when you receive a guilty verdict. As stated above a suspension is a valid reason for cancellation or non-renewal of your Pa car insurance. Being a responsible driver means obeying all Pennsylvania laws.