Pennsylvania Auto Insurance, Give me the Minimum !
By: R Daniel Williams Jr
Too many times I hear the line “Just give me what the state requires” Undoubtedly, you’ve never uttered those words to your agent. Or have you ? Being a little more aware of what the state of Pennsylvania requirements are for auto insurance might help you understand how miserably underinsured many Pa drivers are and why you don’t want into that elusive group.
Pa. has three very simple required coverages to insure your automobile and remain legal to operate and register that vehicle:
ü Bodily Injury Liability- required limits of $15,000 per person and $30,000 each accident
ü Property Damage Liability- required limit of $5,000
ü Medical Expense- required limit of $5,000
Do you understand what bodily injury liability is ? It’s the coverage that will be used to satisfy a legal judgment or claim settlement which has been brought against you after you’ve been proven to have contributed to a third party’s injury due to your negligence. Considering the average bodily injury claim for a broken arm is approaching upwards of $20-30,000 you may agree that carrying the state required limit could put you in jeopardy in the case of an accident that involves any injuries at all. This also applies to any injuries caused by someone else operating your vehicle. The insurance follows the vehicle in Pennsylvania.
How about property damage ? That’s an easy one, you damaged my car, my house, my bike, my mailbox with your car and I want it fixed. God forbid you damage my wife’s Expedition and only carry the Pa required minimum of $5,000. Next course of action will be that my insurance company will take care of me and then begin to recoup their expenses from you. Well, your insurer has already paid the maximum of $5000 now someone wants you to pay the other $15,000. Unfortunately for you, these companies have a system for collecting that involves revoking your driving privileges until restitution has been paid. Again, carrying the state minimum probably would have been a bad choice.
Medical expense is simple, the car insurance is primary your major medical is secondary. If you’ve got good health insurance, no need to be overly concerned about carrying increased limits on medical expense. If you do not carry health insurance you certainly should discuss carrying a much higher limit on your auto policy. Limits are available up to $100,000 and another 1 million in catastrophic expense. For a relatively few dollars this coverage could literally be a life saver in your time of need.
Keep in mind that the courts of the commonwealth have a history of rulings based on what a “reasonable and prudent” person would do. That relates to choosing limits of liability that correspond more closely to your net worth than limits that are at the bottom of the barrel. Speaking with a credible, trusted advisor would be a good first step in choosing pennsylvania auto insurance coverage that won’t leave you stranded in your time of need.
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