assigned risk plan Archives - Bradford PA Insurance - Williams Insurance Agency

Can The Insurance Company Cancel My Pennsylvania Car Insurance Policy?

June 15, 2013 in assigned risk plan, bradford, Bradford PA, bradford pennsylvania, car insurance in bradford, car insurance in bradford pa, car insurance in pa, car insurance policies in Pennsylvania, car insurance policy in Pennsylvania, department of motor vehicles, full tort, limited tort, suspensions, violations

There are many reasons why your insurance company can cancel your car insurance policy in Pennsylvania.  Moving violations, suspensions, and accidents are just a few.  Late payments and missing a payment is another, and Pennsylvania laws do not require companies to have a grace period for premium payments.  However, by law, you will still need to obtain new insurance or you risk suspended driving privileges completely.

Additionally, some insurance companies add surcharges at renewals if you have moving violations, suspensions, or accidents even if they are not your fault.  Some will even allow your spouse or teens to remain on the policy if you have a cancellation, but you will not be able to drive the vehicle yourself.  Furthermore, once cancelled, no one can drive your vehicle until you purchase replacement insurance through another company, and reinstatement is complete.

If you receive a cancellation and cannot find replacement insurance Pennsylvania has an Assigned Risk Plan that is more expensive, but does keep you on the road.  The insurance could even go through the same insurance company you have now.  This is because the commonwealth requires all companies that sell in Pennsylvania to participate in the Assigned Risk Plan.

Keep in mind that you can also cancel your insurance policy provided you have coverage to replace the plan.  However, there are some risks involved.  The greatest is that the new Insurance Company has up to 60 days to investigate all drivers in the household, if any have suspensions, moving violations or accidents they also can cancel your new policy.  Likewise, each time you receive a cancellation the next insurance company deems you a higher risk.  Eventually you would only be eligible for the Assigned Risk Plan.

Still, you may be asking a question about what you can do when faced with high premiums.  Even so, there are many reasons for your rates to be higher.  If a company has paid a higher volume of claims in some neighborhoods, they can increase rates.  If a driver in your household has moving violations or suspensions, they can increase rates.  If you or any family members have been involved in any accidents, they can increase rates.

Sometimes it is less expensive to purchase a separate policy for the person who is a higher risk.  However, you must prove to the Department of Motor Vehicles that each person has insurance. Although the company cannot cancel you because of age, marital status, occupation, or for any discrimination purposes, every driver who lives in the household must have insurance or you will risk suspension and all driving privileges.

Additionally, you can reduce the amount of insurance coverage you currently have.  Work with your agent to determine, where you could best reduce the expense of your insurance policy without reducing the benefits that you need.

Full Tort and Limited Tort are options that you select, but if you select Limited Tort, you should be aware that you are limiting you rights to full settlements if you are in an accident.  Uninsured and Underinsured coverage are other options that can decrease your premium.  However, again each loses some of the benefits found in most car insurance policies in Pennsylvania.

 

Important: PA. Car Insurance Laws You Need to be Aware of

October 25, 2010 in assigned risk plan, full tort, limited tort, Pa Car Insurance, property damage

Auto insurance rules and regulations can vary enormously from one state to the other, and when it comes to getting car insurance, you need to be well aware of such laws. In the case of getting PA. car insurance, some laws may well be unique to Pennsylvania so you need to be sure to do your due diligence. Fail to do so, and you could be in for an expensive shock in the event of an accident, and the last thing anyone wants after an accident is monetary problems and surprises.

 

In this article we’ll take a look at some of the auto insurance laws and how they pertain to Pennsylvania specifically. It’s always worth double checking the information is correct as rules are subject to change, but this will give you a quick overview. Here are some of the PA. car insurance laws that you need to be aware of:

 

Minimum Requirements: Pennsylvania State requires you to be covered for a minimum of $15,000 per person with bodily injury, with at least $30,000 total bodily injury liability and $5,000 per accidental property damage. Property damage covers you in the event of a collision with a building, fence and damage to a garden etc. On top of this, you are required to carry $5,000 to cover medical expenses. All these limits are actually very low in relation to some states and in relation to the damage caused by a lot of accidents.

 

Tort Options: For your PA. car insurance policy, you can decide between “limited tort” or “full tort”. This relates to the compensation you are eligible to receive for ongoing injury as a result of an accident. “Full tort” gives you more thorough monetary coverage by giving you the right to sue the other party for ongoing pain and suffering. “Limited tort”, on the other hand, doesn’t give you this right but is significantly cheaper. This is something you should give a lot of thought to before making a commitment.

 

Assigned Risk Plan: In Pennsylvania, everyone is eligible for car insurance through what’s known as an “assigned risk plan”, no matter how “high risk” you are deemed. This is something you’ll want to pursue if you’re having trouble getting insured, either by being refused coverage or having it cancelled.

 

These are some of the key rules pertaining to car insurance within Pennsylvania that you’ll need to be aware of. Of course, as with any state and any type of regulations, these laws are subject to change so ensure the advice you’re receiving is accurate. Whatever your situation though, getting PA. car insurance is a must. If you’re caught driving within Pennsylvania without liability auto insurance, you’ll receive a 90-day suspension of your license, along with numerous other fines.

 

With the rise of the Internet and the ease of shopping around and comparing quotes online, there’s no excuse to not find an insurance rate that’s suitable for you. Take the time to shop around and get yourself covered; you’ll be thankful you did in the event of an accident.

Pennsylvania Assigned Risk Program

August 3, 2010 in assigned risk plan, auto insurance premiums in pennsylvania, pa auto insurance

Purchasing and maintaining car insurance in the state of Pennsylvania is mandatory if you own a registered vehicle.  The state mandates minimum amounts that all registered vehicle owners must carry, however many owners purchase more than the minimum required.

But for some, purchasing even the minimum amount of required pa auto insurance can be almost impossible.  Your average insurance carrier will not sell coverage to drivers identified as high-risk.  This can be quite a dilemma for many drivers.  They may have a perfectly good driver’s license, a legally registered vehicle, and enough money to pay for their coverage.  But if no company will sell them insurance, then they will be unable to drive a vehicle in Pennsylvania.

There are many factors that can be involved in identifying someone as a high risk driver.  A person’s age and driving record might immediately come to mind.  It is true that teenagers may be classified as high risk and so may persons with a number of accidents on their driving record or a number of moving violations.  But that’s not all.

You may be classified as high risk because of where in the state of Pennsylvania you happen to live, or more specifically, where your car is parked day or night.  While the overall crime rate in the state is lower than the national average, Pennsylvania sits in what is referred to as the “rust belt.”  The rust belt includes large cities like Philadelphia and York that have significantly higher than average crime rates.  Consequently, auto insurance premiums in Pennsylvania tend to be higher.

Even still, if you posses a valid license and a valid vehicle registration you have the right to operate a vehicle, which means you must have vehicle insurance.  That’s why the state of Pennsylvania developed the assigned risk program.  This program makes car insurance available to drivers who because of their high risk status would otherwise not be able to purchase the required coverage.

In addition, state law requires any insurance company that offers vehicle insurance in Pennsylvania to participate in the assigned risk program.  Therefore, if no company will voluntarily cover a high risk driver, then under the assigned risk plan, the driver will be assigned to a company who is required by the state to cover them.

Any driver who believes they may need the help offered in the assigned risk program would be wise to first consult with a licensed pennsylvania insurance agent.  An agent will initially attempt to exhaust all avenues for retaining insurance through the voluntary market.  After three unsuccessful applications, the agent will then register the driver for the Pennsylvania assigned risk program.  The agent will complete the application form on behalf of the driver seeking coverage.

If for some reason a high risk driver does not want to use the services of a licensed agent, then the application can be completed by the driver.  However the driver must submit the application to the Pennsylvania Department of Transportation in order to be assigned to an insurance provider.

While participating in this program will mean significantly higher premium rates, it is, for some vehicle owners, the only viable option. Be sure to check with one of our advisors and see if we have a specialty company that has even lower rates.

Mandatory Auto Insurance Laws in Pennsylvania

July 29, 2010 in assigned risk plan, auto insurance laws in pennsylvania, auto liability coverage, liability coverage, mandatory pennsylvania car insurance coverage, minimum liability coverage, pennsylvania department of transportation, Pennsylvania insurance department, uninsured/underinsured motorists

There are mandatory auto insurance laws in Pennsylvania that every driver who operates a vehicle in Pennsylvania must follow. When looking into pa auto insurance rates, keep these in mind.

  • In the state of Pennsylvania all drivers must carry a minimum of auto liability coverage in the amount of $15,000 for bodily injury (BI) per injured person
  • In the state of Pennsylvania all drivers must carry a minimum of auto liability coverage in the amount of $30,000 for bodily injury per accident
  • In the state of Pennsylvania all drivers must carry a minimum of auto liability coverage in the amount of $5,000 property damage liability coverage and $5,000 personal injury protection (PIP)
  • All drivers operating in Pennsylvania must carry proof of insurance at all times
  • The Pennsylvania Insurance Department holds that if you are stopped by law enforcement for a moving violation and law enforcement officials determine that you are operating your vehicle without insurance, you can be subject to the following penalties and expenses:
    • a minimum of $300 fine for driving uninsured
    • a three-month suspension of your vehicle registration
    • a three-month suspension of your driver’s license
    • renewal fees to renew your vehicle registration
    • renewal fees to renew your driver’s license
    • vehicle impoundment.

In addition to the above penalties, no other person may drive your vehicle during the time the registration is suspended.

 Mandatory auto insurance laws in Pennsylvania also pertain to rental cars. Rental cars must also carry the minimum liability coverage required by Pennsylvania law. Most Pennsylvania auto insurance policies include coverage for car rentals as a matter of course. In addition, if you pay for your rental car with your credit card, most credit cards have automatic coverage for car rentals.  Drivers would be wise to check their auto insurance policy and/or check with their credit card issuer. In the case that your credit card will not insure your rental car, then you must purchase car rental insurance from the car rental provider. 

Auto insurance laws in Pennsylvania do not require that drivers purchase uninsured/underinsured motorist coverage.  However, most insurance companies recommend carrying this coverage to protect you from an at-fault driver who does not have the proper insurance or does not have enough insurance to cover your damages.

Und mandatory auto insurance laws in Pennsylvania, the policy holder may exclude other persons in the household from their auto insurance policy.  A policy holder may only do this if the excluded person can establish that they have purchased and maintained auto insurance with either another insurance provider or through the Pennsylvania assigned risk program.

In the state of Pennsylvania, a lapse  in insurance coverage longer than 30 days can result in the suspension of your vehicle’s registration for a period of three months.  In addition, the driver must be able to prove to the Pennsylvania Department of Transportation that he or she did not operate the vehicle during the period of the lapsed coverage.

Obtaining an Insurance Policy through the Assigned Risk Plan

July 5, 2010 in assigned risk plan, insurance agent, pennsylvania auto insurance

While a car insurance policy can benefit a lot of people, not everybody can be qualified enough to get approved for an insurance. Especially when you are identified as a high-risk driver, companies will not anymore bother to take a look at the documents that you have submitted for application. But with the birth of the assigned risk program of the Pennsylvania auto insurance, people can now say goodbye to this kind of dilemma.

             The state of Pennsylvania is known to be one of those that require every vehicle owner to carry Pennsylvania auto insurance. But with the changing lifestyles of people that somehow pose an effect on their risk ratings as car automobile owners, not all of them may be approved of the Pennsylvania auto insurance. That is why the assigned risk program was made for these high-risk drivers.

So who exactly are these high-risk drivers? To become one of those that fall under the high-risk category, there are factors that are taken into account. Some of them may be the age, the crime rate of the city where the driver is residing, and the model of the vehicle to be insured. And when you are unfortunate enough to be classified under the high-risk category, you could still qualify for the assigned risk program.

So what can the assigned risk program do for you? This program is the last resort of people that cannot get an approval of the commercial insurance companies. However, while approval is always sure since it is the state that makes the program possible, a higher premium payment can be expected due to the greater risk that will be taken on.

So how can you obtain an assigned risk plan? Take note of the following steps towards a successful application.

  • Consult an insurance agent. Seek his advice on where and how to get an assigned risk plan.

 

  • Be reminded that your agent will not immediately go after the assigned risk program for you and instead, he will make an effort to seek for a normal insurance coverage first.

 

  • Only after three failed attempts of getting an approval for a normal coverage will your agent start to apply for the assigned risk plan.

 

  • The agent will complete an application form and submit the same to the appropriate state department handling the processing.

 

  • In your application form, the insurance agent will explain that you are classified under the high-risk category but you need car insurance so that you can drive around legally.

 

  • However, if you don’t want to bear additional costs in consulting with an insurance agent, you can also apply for an assigned risk plan by yourself. Just go directly to the state’s insurance department so you can be assisted in searching for an insurance company that can accommodate you.

 

Getting a car insurance has never been this easy. Through the help of the assigned risk program, people can now sit behind the steering wheel without the fear of getting trapped in between the consequences of an accident.