Auto Insurance Laws in Pennsylvania

Pennsylvania financial responsibility law protects motorists from uninsured motorists on the road.

Pennsylvania requires all drivers on Pennsylvania's roads to carry liability insurance. The Pennsylvania Motor Vehicle Financial Responsibility Law determines the amount of coverage a driver must carry to operate a vehicle in the state. If a driver does not maintain continuous insurance coverage, she may face suspension of her automobile registration and driver's license.

Liability Coverage

Liability coverage pays for damages that you cause in an accident. The Commonwealth of Pennsylvania requires drivers to carry liability insurance that covers property damage and bodily injury. Drivers in Pennsylvania must carry a minimum of $15,000 for each person injured or damaged and $30,000 for each incident. Drivers can choose to carry more liability coverage to protect their home and assets against claims that exceed the minimum amount the law requires.

First Party Coverage

First party benefits coverage requires drivers to carry personal injury protection coverage for medical bills incurred because of an accident. In Pennsylvania, the minimum amount of coverage for this type of insurance is $5000. The personal injury protection coverage pays for your medical bills after an accident, before your health insurance.

Tort Options

Pennsylvania requires drivers to select a full tort or limited tort protection on their automobile insurance. Those who select limited tort limit the ability to sue for damages after an accident. The limited tort option gives consumers a lower premium price and reduces the risk to the insurance company. Cases of serious bodily injury are exceptions to the limitation, but the courts in Pennsylvania define serious bodily injury very stringently.

The full tort option does not limit the insured's ability to sue for damages after an automobile accident. The premium cost is higher on policies with this option.

Registration and License Suspension

Drivers who fail to conform to the financial responsibility law are subject to suspension of their vehicle registration and operator's license. The state suspends registration and license for three months if the driver violates the law. The driver must show proof of insurance before the commonwealth will reinstate the license of the operator and the vehicle registration.

Those whose policy was terminated by the insurance company, but reinstated within 31 days are not subject to the suspension penalty. The driver must not operate the vehicle during the time that the vehicle was uninsured.

References

• Silvermann and Fodera: Automobile Insurance Laws in Pennsylvania
• Pennsylvania Department of Motor Vehicles: Chapter 17 Financial Responsibility