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| Auto Insurance |
- For most Americans auto insurance is a very expensive purchase. To make an informed decision you
should learn as much as you can about the underwriting factors that affect the cost, the different
amounts of coverage available, the requirements in your state, and about what insurance companies
have the best rate for you.
Pennsylvania is a “No Fault” state. That means that every driver is required to purchase Personal
Injury Protection, PIP, in which the driver’s insurance company covers injury-related expenses and
associated costs as a result of an accident regardless who is at fault. This insures that every motorist
will receive immediate medical attention. Also, this limits a driver from suing or being sued for damages
as a result of an accident in most cases. However, based on the severity of the accident/injury or
monetary amount, if you are at fault you may be subject to a lawsuit for damages.
Pennsylvania Auto Insurance Minimum Coverage – Minimum auto insurance coverage required in
Pennsylvania must provide at least $15,000 for injury liability per person in an accident, $30,000 for all
injuries in a single accident, and $5,000 for property damage in that accident.
Tort Options - Right to Sue
Pennsylvania law requires that you select a tort option, either Full or Limited Tort.
Full Tort - By choosing this option, you (and the members of your household) retain the unrestricted
right to seek financial compensation for injuries cased by other drivers. You and others covered under
the policy may seek recovery for all medical and other out-of-pocket expenses, pain and suffering and
other non-monetary damages caused by other drivers.
Limited Tort - By choosing this option you limit your ability to recover non-monetary damages along
with pain and suffering unless the injuries fall within the following exceptions:
1. Serious Injury - A personal injury resulting in death, serious impairment of body function or
permanent serious disfigurement. This is determined by a court of law and may not match your
definition of 'serious injury'.
2. The person at fault is convicted of Driving Under the Influence of Alcohol or Drugs or accepts
Accelerated Rehabilitative Disposition (ARD).
3. The person at fault is operating a motor vehicle registered out of state.
4. The person at fault intends to injure himself or another person.
5. The person at fault has not maintained financial responsibility as required by PA law.
maintaining a motor vehicle arising out of a defect which is caused by or not corrected by an act
in the course of such business. Excludes motor vehicles used by the business.
7. The individual is injured while an occupant of a motor vehicle other than a private passenger
motor vehicle.
The above listed exceptions would retain the full tort rights.
Underwriting Factors
Insurance companies underwrite to assess risk associated with an applicant. That is, what groups are
at a higher risk to make more claims. The groups with a higher claim history will pay more for auto
insurance. Underwriting factors that affect cost are:
- Driving Record - Drivers with previous traffic violations and at fault accidents would be placed in a
higher risk group. - Marital Status - Claims among married policyholders are less than single policyholders putting them in
a lower risk group than single policyholders. - Residence - The location where you garage the vehicle (usually your residence) also affects the rates.
More claims are made from urban areas than rural areas. - Age and Gender - Some age groups fall into higher risk groups. Teenagers have many more accidents
than the rest of the population. - Use of Vehicle - Higher annual mileage will usually result in higher cost because of the higher exposure
to risk. Vehicles driven to and from work or school. - Type of Vehicle - The type and cost of the car you drive will affect the cost of the insurance. ·
- History of Prior Coverage - If you were cancelled because of non-payment of premiums from a prior
insurance company your rates in some states might be affected adversely. - "Better Risk Discounts" - If you qualify, discounts you should ask for:
Safety Devices - Automatic seat belts, Anti-Lock brakes, Air Bags etc.
Good Driver
Anti-theft devices
Driver Education courses for young and old drivers
Liability Insurance
Bodily Injury Liability Insurance protects you against claims of other people who are injured when you are
at fault. It does not protect you against damage to you personally or your car. It protects you from their
damages such as medical expenses, lost wages, and pain and suffering. You will also be covered for
damages if the accident was caused by a member of your family living with you or a person using your car
with your consent. Bodily injury liability insurance is purchased with specific benefit limits. These limits
address how much money the insurance company is committed to pay for any one victim in an accident and
limits the amount they must pay for multiple victims. Most states require you to purchase minimum amounts of
bodily injury coverage. If you raise your coverage your premiums will increase because the insurance
company will be assuming a higher risk.
Property Damage Liability Insurance pays for any damage you cause to the property of others. It could be
a dented fender, broken window, or damaged property. The insurance company will pay the claim whether
you were driving your car or whether it was driven by another person with your consent. Property damage
liability insurance is purchased with specific benefit limits. Most states require you to purchase minimum
amounts of property damage liability insurance.
Uninsured motorists coverage is protection for you. This coverage pays you if you are injured by a driver
who does not have auto insurance or by a hit-and-run driver. This coverage takes the place of the insurance
the other driver should have purchased but did not, or covers the amount the other driver's insurance does
not cover. Uninsured motorists coverage is purchased with specific benefit limits. Most states require you to
purchase minimum amounts of coverage. This coverage does not protect the other driver and may not cover
damage to your vehicle.
No-Fault
Each state must implement either a Tort System or a No-Fault System. Liability insurance above applies to
the Tort system. In a no-fault state your insurance company pays you directly for your losses as a result of
injury sustained in an accident, regardless of who is at fault. If the other driver was injured in the same
accident, the other driver collects losses from his or her own insurance company. You could be sued only
under specific conditions. You could be sued if you are the driver at fault in an accident that causes very
serious injuries to others.
Personal Injury Protection (PIP) is the most basic no-fault coverage. This coverage pays for the losses
incurred due to injuries to anyone riding in your car a minimum benefit amount per person for injury
regardless of fault. The level of benefits varies widely among states. See "Minimum State Insurance
Requirements".
The following coverages are normally included under PIP:
- Medical Expense Benefits include all reasonable charges for medical, hospital, surgical,
professional nursing, dental, optometric, ambulance, prosthetic services and X-rays. - Rehabilitation Expenses Benefit includes charges for psychiatric, physical and occupational
therapy, and rehabilitation. - Work Loss Benefit includes coverage for loss of wages up to a specific limit for a specific time period
following injury. - Funeral Expense Benefit covers all reasonable charges up to a specific amount for funeral services
including burial and cremation expenses. - Survivors Loss Benefit provides a payment to your surviving spouse or dependents up to a specific
amount for a specific time period.
Residual Bodily Injury Liability Coverage protects your family and anyone else while in your car with your
permission in the event you are sued because of injuries caused to others. Each no-fault state has defined
certain thresholds that, if exceeded, open the possibility of a suit. These thresholds can be based on specific
dollar amounts, clearly defined injuries and/or death resulting from an accident. No-Fault specifically
excludes property damage liability for damage that you cause to the property of others. If you are at fault in
such an accident, you will be held liable and can be sued for these losses. You must buy separate collision
coverage to satisfy this risk.
Property Damage Coverage
Property damage is covered by either Collision coverage or Comprehensive coverage.
Collision Coverage pays for physical damage to your car as the result of a collision with an object or
another car. This coverage is expensive and is optional but may be required by your lending institution or
lessor. The higher the deductible, the more you will save on the cost of coverage. Collision coverage only
covers your financial expenses for repair of your damaged car. If the repair cost exceeds the current value of
your automobile the insurer will "total" the car and pay you only what the car is worth, not what it would cost to
repair.
Comprehensive Coverage pays for damage to your car other than the result of an accident, such as, theft,
fire, severe weather, flood, and vandalism. It is not as expensive as collision coverage and the cost can be
reduced as you increase the deductible. This coverage is optional but may be required by your lending
institution or lessor.
Optional Coverages
Medical Payments Coverage pays for the medical and funeral expenses for you or others injured or killed
in an accident while riding in or driving your car even if you cause the accident.. Claims include all reasonable
hospital, surgical, chiropractor, X-ray, dental, professional nursing, prosthetic, and funeral expenses. It also
covers you or members of your family if you are struck by any auto while walking or while riding in another
auto.
Rental Reimbursement Coverage usually pays a specific amount for a specific number of days while your
car is being repaired.
Towing Coverage pays the cost of towing your car to the repair shop.
NOTE:
The mainstay of the agency provides our engine for growth. Our low down payment theme is extremely
popular. It provides an easy means to obtain insurance quickly and is especially helpful when first purchasing
a vehicle and funds are scarce. Available are monthly rates in Philadelphia as low as $69.00 monthly for only
nine monthly payments.
We now have the capability to run instant Motor Vehicle records. A minor up-front charge to the customer
ensures that the best plan is provided given available information found on the motor vehicle record. In
addition, flat cancellations are avoided due to suspended licenses.
New for July 2004 we introduce Mercury Insurance Co to Pennsylvania. Mercury is a standard insurance
company with a major presence in California. If you qualify for standard insurance you no longer need to
seek a one company agent. Get service and selection and now standard insurance from the agent you
started with. Coming soon homeowners insurance from Mercury.
New for December 2004 we now represent AIG for auto and motorcycle insurance. Call now for low rates from
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Call us now at 215-288-4060 for a quick quote insurance coverage.
This web site may contain concepts that have legal, accounting and tax implications. It is not
intended to provide legal, accounting or tax advice. You may wish to consult a competent attorney,
tax advisor, or accountant. It is intended for informational purposes only.