All vehicles operating on roads are obligated by law to have auto insurance in Pennsylvania, so they can protect themselves from financial loss in the case of an accident. In Pennsylvania, auto insurance requirements are also known as financial responsibility requirements. The minimum mandatory requirements comprise of three types of coverage. The first is a medical coverage of a minimum of $5000 that pays for medical bills resulting from any injuries sustained in an accident, irrespective of the mistake. The other is a bodily injury liability that has a minimum limit of $15,000/$30,000. In this, $30,000 is the total amount payable for one accident, while $15,000 refers to the amount payable for one individual’s injuries. A property damage liability of $5000 pays for the destruction of property if it was caused by your fault.
Optional coverage offered by insurance companies includes:
- Income Loss Coverage;
- Funeral Benefit;
- Towing Coverage; and
- Rental Reimbursement Coverage.
Your particular insurance policy will determine which expenses the company will cover in exchange for the premium you are paying. Your premium will depend on your driving history, type, age and safety features of the vehicle, number of miles driven in a year on average, and the type of coverage chosen.
Driving without insurance is not allowed, so you will be penalized if you do so. No matter what the circumstances, there cannot be a lapse in your insurance policy of more than thirty one days. When you drive a car without insurance, you are likely to have your registration and license suspended. This involves surrendering registration stickers and driver’s license to the Pennsylvania Department of Transportation, which means that no one can drive that vehicle during the suspension period of three months. In addition to this, you will be fined a minimum of $300 and your vehicle will risk confiscation. Driving privileges can be reinstated by paying $50 each for the registration and license, after you have established the proof of insurance.
Those who are unable to obtain coverage can participate in Pennsylvania’s Assigned Risk Plan. You can also opt for self insurance, if it is within your reach.