When you purchase private passenger automobile insurance, there are certain coverages that are required and others that are optional. The required coverages are:

 

Medical Benefits — This pays medical bills for you and others who are covered by your policy, regardless of fault. The minimum limit is $5,000 of coverage. Higher limits are available if you so choose.

 

Bodily Injury Liability — If you injure someone in a car accident, this coverage pays their medical and rehabilitation expenses and any damages for which you are found liable. The minimum limit is $15,000/$30,000. The $15,000 pays for injuries to one person, while the $30,000 represents the total available for one accident.

 

Property Damage Liability — If you damage someone’s property in an accident and you are at fault, this coverage pays for it. The minimum limit is $5,000 of coverage.

 

Some companies offer a single limit of $35,000 which meets the bodily injury liability and property damage liability minimum requirements.

 

Limited or Full Tort — You can choose to have full or limited tort coverage. Limited tort coverage offers you a savings on your premiums. You are still able to recover all out-of-pocket medical and other expenses; however, you are not able to recover certain damages - such as payments for pain and suffering - unless the injuries meet one of the exceptions to limited tort as defined in Act 6 of 1990, title 75, section 1705 (d). With full tort coverage selection, you retain unrestricted rights to bring suit against the negligent party.

*Information provided from the Pennsylvania Department of Insurance.


 
 
Drivers must purchase and maintain car insurance in order to legally drive in Pennsylvania.  Under Pennsylvania law, this is called maintaining “financial responsibility” on your vehicles. A lapse in insurance coverage may result in the suspension of your vehicle registration privilege for three months, unless the lapse of insurance was for a period of less than 31 days and the owner or registrant proves to the Department of Transportation (PennDOT) that the vehicle was not operated during this short lapse in coverage. 

If PennDOT determines that you operated your vehicle without the required insurance, your driver’s license may be suspended for three months. Also, your car’s license plate, registration sticker and driver’s license must be surrendered to PennDOT in order to serve the suspension. Restoration fees and proof of insurance must be submitted prior to having either registration or driving privileges returned.  

If you are stopped for a moving violation and it is determined that you are operating your vehicle without insurance, you could face 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
  • Restoration fees to restore your vehicle registration
  • Restoration fees to restore your driver’s license
  • Vehicle impoundment
In addition, your vehicle may not be driven by anyone while the registration is suspended.

*information obtained from the Pennsylvani Department o


 
 
So you have an "older" car and you've made the decision that you aren't going to carry collision coverage.  You figure "I tend to be a safe driver" so I wont hit anybody or anything.  Think again...

What if you come out of a store and notice somebody opened their door into your car? Or somebody backed into your car and drove away?  Maybe...just maybe you have a small fender bender while your BOTH backing up and the other person's insurance company doesn't accept fault?  Guess what...You have no collision coverage to fall back on!

It's always important to examine the cost of collision coverage versus the value of the vehicle.  But too many people neglect to realize the many situations that can occur where it's NOT YOUR FAULT, but the burden to fix the vehicle still falls on you.  And by the way..you still have to part with your collision deductible in these circumstances.  Remember, carrying collision coverage is a contract with the insurance company that....in a nutshell....says "If you have a collision loss, your insurance company will fix the damages subject to your deductible."