Pennsylvania is a no-fault insurance state and many people looking for a car insurance experience confusion as they shop for insurance in the state. This is for a good reason—Pennsylvania is one of only 12 states which uses the policy. Invented in the 1960s, supporters of the no-fault system argue that it helps to make deciding fault in an accident easier by eliminating the process of determining liability.
What Does No-Fault Mean for Pennsylvania Insurance?
No-fault insurance describes an insurance system that stops a person from obtaining compensation from the other party’s insurance after an accident. Instead, no-fault policyholders seek reimbursement for damages from their own insurance company. If you’d like to learn more details about no-fault insurance, you can do so by reading a previous blog post on the subject.
Pennsylvania’s Insurance Requirements
Pennsylvania requires that every driver carries a minimum amount of insurance. These requirements are the minimum amount a person can have to be considered adequately insured in the event of an accident. However, these are just minimums and drivers should consider protecting themselves with more coverage if their finances allow it.
Pennsylvania insurance requirements are the following:
- $15,000 of injury protection for each person
- $30,000 of total injury coverage
- $5,000 of coverage for property damage
- $5,000 of medical coverage for the policyholder
Benefits of Holding Policies Which Exceed Pennsylvania Minimums
After an accident, a person’s medical coverage will pay for their hospital bills until costs reach its maximum coverage. Once used up, the individual’s health insurance will cover the outstanding costs of care. Notably, there are no deductibles on a car insurance policy’s medical coverage as there are with regular health insurance plans. So, those with high medical costs after an accident may benefit financially from having more medical coverage on their car insurance policy.
Wage loss is also covered by an optional addition to Pennsylvania no-fault insurance policies. If a person needs compensation for time lost at work, they may have trouble obtaining coverage because of the state’s no-fault laws. However, exceeding minimums is a luxury that not all people have the finances to enjoy.
Full-Tort Coverage: Pennsylvania’s Alternative to No-Fault Insurance
Pennsylvania allows those with full-tort insurance policies to opt-out of its no-fault insurance system. Tort is the legal term used to describe cases in which one person seeks to recover damages from the party that caused an accident. When a person carries full-tort insurance, they can hold the responsible party liable for causing an accident. Those with limited-tort coverage are only able to sue for injuries in serious circumstances. While full-tort policies are more expensive, they provide the legal freedom that injured parties need after a serious accident. With this fact in mind, drivers are encouraged to have full-tort insurance.
The Bottom Line: Insurance Depends on Finances
The key to selecting insurance in the state of Pennsylvania is avoiding the temptation of saving more money than you need to. While it is tempting to pick the minimum amount of coverage, those who can afford more should buy it. Otherwise, a person may experience financial hardship after an accident or even pay for one that they didn’t cause. So, buying insurance is a balancing act between affordability and adequate coverage.
Insurance Companies Are Not Always on Your Side
At Handler, Henning & Rosenberg we’ve seen insurance companies protect their interests instead of serving their policyholders. As businesses, insurance companies do not always honor claims that harm their bottom line. Instead, they delay claims, deny them to frustrate claimants, and then defend themselves with a dense network of lawyers. This is unacceptable, and HHR is ready to help you fight for the recovery that you deserve.
Since 1922, we’ve fought for residents of Harrisburg, York, Lancaster, and surrounding areas after they’ve suffered in a car accident. Our dedication to results and willingness to pour the resources that cases need has earned us a reputation for success in Pennsylvania. When lawyers from the other side face us, they know that they are facing a team who never settles for less than a client deserves. We’ve won tens of millions for clients and are ready to fight for your recovery right now.
Call our Pennsylvania car accident attorneys right now for a free consultation. A member of our team is ready to talk when you call (888) 498-3023.