Pennsylvania Auto Insurance Laws, Minimums, Requirements

What mandatory auto insurance laws exist in the state of Pennsylvania?

• In the state of Pennsylvania, insurance is mandatory. All drivers must carry the minimum auto liability coverage in the amount of $15,000 bodily injury liability per injured person, $30,000 bodily injury per accident, $5,000 property damage liability coverage, and $5,000 personal injury protection (PIP).
• In the commonwealth, all drivers must carry proof of insurance at all times.
• The Pennsylvania Insurance Department states that 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, and vehicle impoundment.
• In addition, your vehicle may not be driven by anyone while the registration is suspended.

What is the Minimum Liability Coverage (Bodily Injury amounts per person, per accident, and property damage amounts):

If you buy automobile insurance in Pennsylvania, your policy must include minimum liability coverage of:

$15,000 bodily injury liability per injured person,
$30,000 bodily injury per accident,
$5,000 property damage liability coverage,
and
$5,000 personal injury protection (PIP)

What are the Rental Car Insurance Requirements?

In the Commonwealth of Pennsylvania it is illegal to operate any motor vehicle without insurance, this includes rental cars. Rental cars must carry the minimum liability coverages required by Louisiana law. It is important to keep in mind that most Pennsylvania auto insurance policies include car rentals. Most credit cards cover car rentals as well, so be sure to check your auto insurance policy and/or check with your credit card issuer. If you find that your credit card and/or auto insurance policy do not cover rental cars, you must purchase car rental insurance from the car rental company. It typically costs an extra $7-$14 a day.

What are the rules pertaining to Uninsured/Underinsured Motorist Coverage?

Uninsured/Underinsured Motorist Coverage is not required in the state of Pennsylvania, but because Pennsylvania follows a Tort system, most insurance companies recommend that driver’s consider carrying higher coverages than the state minimums. 

What are the rules pertaining to the exclusion from coverage of a driver living in household?

In the state of Pennsylvania, the FIRST NAMED insured (the policyholder) may exclude any family member from the auto insurance policy, provided that the person being excluded can prove he or she has auto insurance with another company or the Assigned Risk Plan.

What are the rules regarding whether a driver has prior insurance? That is, how does state law handle it if a driver has no prior insurance or has let their previous insurance lapse?

In the state of Pennsylvania, 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.

What are the rules and guidelines auto insurance companies must follow regarding the use of Personal Credit History in selecting applicants and setting rates?

In the state of Pennsylvania, it is legal for auto insurers to use Personal Credit History to help determine which products they will offer as well as rates. Your Personal Credit History may also be used to determine whether you will be making monthly or quarterly payments or if you will be required to pay the entire premium upfront. Personal Credit History is also used to create an “insurance risk score.” This score also helps determine your auto insurance rates. In order to enjoy a lower insurance premium, pay your bills on time in an effort to improve your score. This will also help improve your credit history so that in the long run, you can save money on your car insurance premium. That said, Personal Credit History is not the only assessment tool Mississippi auto insurance companies may use. They also consider age, gender, where you live, car make and model, how much you drive, and driving record. In the state of Pennsylvania, it is  against the law to use personal credit history at renewal time.

Is the state a No Fault or Tort state? What does either mean to the policy owner?

The state of Pennsylvania follows a Tort System. What this means is, if you are involved in an accident, someone must be found to be the cause or fault of the accident. The person deemed at fault is responsible for all damages. Damages are usually handled through the at-fault person's insurance company. Because Pennsylvania is a Tort state, most insurance companies recommend that driver’s consider carrying higher coverages than the state minimums. 

**Under Pennsylvania's Tort system, driver's can choose tort options to define their right to compensation in the event that another party injures the driver or members of the driver’s household in a collision. Pennsylvania is unique in that driver's may choose between Full Tort and Limited Tort. Under the Full Tort option, the driver's right to financial compensation for injuries caused by other drivers is unrestricted.

Pennsylvania requires that all drivers carry personal injury protection (PIP) in the minimum amount of $5,000. This helps pay for "reasonable and necessary" medical expenses for the driver and his passengers.

What is the average auto insurance premium in this state? As of what year?

As of 2006, Pennsylvania resident’s average insurance premium was approximately $832, the 18th most expensive in the nation. This was down 2.1% from the previous year. The national average was $817.

Sources

Insurance Information Institute 

Insurance Department Commonwealth of Pennsylvania