Pennsylvania Auto Insurance

Auto insurance is an agreement between you and your insurer in which you pay the insurance company money (premium) and, in return, the company will help protect you from financial losses due to an accident for a given period of time. An auto insurance policy is a package of the following primary coverages.

Bodily Injury Liability Coverage – pays for bodily injury or death resulting from an accident for which you are at fault and in most cases provides you with a legal defense. Pennsylvania law requires minimum limits of $15,000 per person and $30,000 per accident. While minimum limits are a low cost option, higher limits are generally recommended in order to protect your assets – your home, savings and income.

Property Damage Liability Coverage – pays for damage to another person’s vehicle or property resulting from an accident for which you are at fault and in most cases provides you with a legal defense. Pennsylvania law requires a minimum of $5,000. A higher limit is recommended since most vehicles are worth much more than $5,000.

Person Injury Protection (PIP) in Pennsylvania is a “no fault” coverage called First Party Benefits – pays for treatment of injuries. Optional First Party Benefits include income loss, funeral and accidental death coverage.

Uninsured Motorist Coverage pays for your injuries caused by an uninsured or hit and run driver. UnderInsured Motorist Coverage applies when the at fault driver has insufficient insurance.


Comprehensive Physical Damage Coverage (sometimes called “Other than Collision”) pays for damage to your car caused by something other than a collision such as theft, vandalism, flood, fire and other covered perils. Contact with animals such as birds or deer is also covered by Comprehensive Coverage.

Collision Coverage – pays for damage to your car when it hits or is hit by another vehicle or object.

Rental Reimbursement (sometimes called Extended Transportation Expense) pays for a rental car while your damaged vehicle is out of use due to an accident.

Towing or Roadside Assistance pays for towing, battery jump-start, flat tire change or locksmith service at the place of disablement.

Auto Insurance Rates are influenced by multiple factors such as driver age, driving record, location, vehicle(s), credit score, policy limits and deductibles. You can lower your auto insurance cost by electing a higher deductibles for collision and comprehensive coverage. You can also save money by not maintaining collision and comprehensive coverage on older, lower value vehicles. Discounts are available for vehicles equipped with air bags and antitheft devices. A multi policy discount may apply if you have other policies with the same company.

Tort Option - On July1, 1990 Pennsylvania’s Act 6 was implemented. Among other things, it created a Limited Tort option. By choosing this option and agreeing to limit your ability to sue for pain and suffering, you save an average of 25% off your auto insurance premium.