Helpful Facts on Pennsylvania Car Insurance

July 22, 2011 in Uncategorized

It’s crucial that you get the best Pennsylvania car insurance you can. Every vehicle registered in Pennsylvania absolutely MUST have the required minimum amounts of liability insurance coverage. These are administered by the Pennsylvania Department of Transportation, which can hand out fines and vehicle registration suspension to drivers who don’t comply.


There is always so much to know, to steer clear of any problems and stay on the right track.


Pennsylvania is ranked, out of all 50 states, #26 in terms of the overall cost of car insurance. Middle of the road, you might say… but not exactly. Pennsylvania’s rates average right below the national average: $1,420.78 in 2010, compared to $1,774.41 in California and $2,098.29 in Michigan, according to a report by Quadrant Information Services. Just to compare them like this, Pennsylvania is actually relatively low.


Pennsylvania has one of the lower state requirements for car insurance however you should always consider increasing your coverage. Remember that simply having car insurance is not full protection in the event of an accident. It’s simply protection based upon the terms of your coverage up to your policy limits.


Car insurance is a legal agreement, in the most basic definition, between you and an car insurance company to protect you against financial loss in the regrettable event that an accident occurs. And when it comes to cars, those just might happen.


You agree to pay the premium, and (in return) the company agrees to pay for certain expenses that the policy defines. In Pennsylvania, “liability coverage” and “first party coverage” are both mandatory types of coverage. Types of car insurance that are not mandatory are under-insured motorist coverage (UIM), uninsured motorist coverage (UM), collision coverage, and comprehensive coverage.


Currently, Pennsylvania requirements are that any vehicle should have at least $15,000 in coverage for injury to another person in an accident, $30,000 in coverage for injury to more than one person in an accident, and $5,000 of coverage for property damage


When you are ready to get some insurance for yourself, and start driving legally, the insurance company may ask you some questions and decide whether or not to accept you as a policyholder with them. The practice is known as underwriting. Insurance companies legally cannot discriminate by using things like race, age,  religion, ethnic group or nationality, sex, occupation, place of residence family size, or marital status. They will then decide the appropriate rate to charge you.


Insurers will take some issues into consideration when clarifying and completing your premium… where is the vehicle usually stored overnight? What type of vehicle is it, and how old is it? Does it have safety features? How many miles, on average, would it be driven in a year? What are each of the drivers’ histories?


Certain benefits that are covered by almost all Pennsylvania auto insurers include medical benefits, bodily injury liability, and/or property damage liability. Some companies even offer a single, easy combination of bodily injury liability and property damage liability.


In certain cases, you might be able to adjust one of these non-mandatory coverages to lower your premiums, but it does not mean you should go entirely without them.


The first step is just to answer some questions: an agent from the insurance company will ask you a few questions and then decide if they will accept you as a policyholder. This is called underwriting. Insurance companies can’t discriminate against you by judging you based on things like race, nationality or ethnicity, age, religion, sex, family size, occupation, residence, or marital status.


Insurers will take certain issues into consideration when deciding your premium… what is the year, model, and type of the vehicle? Does it have safety features and enough of them? Where is the vehicle kept in storage overnight? How many miles is it driven, on average, in a year? What are the histories of each of the drivers?


Emphasis is mostly placed on the type of car, your driving record, and the credit score you have… although where the vehicle is registered is another significant factor.


See? Pennsylvania car insurance is so easy!