With regard to buying Pennsylvania car insurance, it’s important to understand that Pennsylvania follows a tort system and not a no-fault system. If you drive a registered vehicle in Pennsylvania, this can have important implications for which insurance coverage you choose to purchase.
No-fault car insurance is a system under which each driver pays for his or her own medical expenses in a traffic accident. No matter who was at fault for the accident, your insurance company automatically pays your medical bills and yours alone. This may sound similar to the Pennsylvania required Personal Injury Protection (PIP) insurance because it pays your own medical bills, but the distinction is that PIP will only pay your medical expenses if you cause the accident.
As stated before, Pennsylvania follows the tort system, which means that when there is a traffic accident, someone must be found to be the cause of or be at fault for the accident. Then, the individual who is found to be at-fault is responsible for all the damages resulting from the accident. If you have the mandatory Pennsylvania car insurance coverage and you are at-fault for the accident, then your insurance company would pay the damages up to the amount of your coverage.
It is the phrase “up to the amount of your coverage” that is key to protecting yourself as a driver. Pennsylvania mandates that all drivers carry a minimum of personal injury protection (PIP). That minimum amount is only $5,000 of coverage, which in many cases may not be enough to protect you from having to pay additional amounts out of your own pocket. Under Pennsylvania’s tort insurance system, all damages to property and all injuries are the responsibility of the at-fault driver, including any and all amounts over and above the amount of your liability insurance coverage. The other driver or drivers who are not at-fault may sue you in an attempt to collect any outstanding damage amounts and medical expenses. This can also include pain and suffering and lost-time compensation.
It is imperative that you carefully review your coverage and the maximum limits that your liability coverage provides. Since you are personally responsible for paying any remainder should you be at fault, any assets held by you could be at risk. Therefore, you may want to purchase additional coverage. As you increase your coverage amount, your premiums will increase. When you raise your coverage limits you are asking your insurance company to take on the responsibility for a potentially higher claim.
Another type of pa auto insurance coverage that might be a smart purchase is uninsured motorist (UM) coverage. This type of insurance covers you in the even you are involved in a traffic accident with an at-fault driver who is not insured or who does not have enough insurance to cover your expenses or to compensate you for your injuries.
When shopping for your Pennsylvania auto insurance coverage you should obtain several quotes from several carriers. Even though additional coverage may cost you a little in increased premiums, it could potentially save you thousands of dollars if you are injured in an auto accident.
Related posts: