This topic is something that must be understood by every driver on the road. Many people don’t understand what exactly it is that they are paying for when it comes to car insurance. Below is a simple break down of what it all means. It is highly suggested that you obtain a copy of your declaration page and review your coverage selection.
Pennsylvania’s requires three mandated coverage’s:
- Bodily Injury Liability
- Property Damage
- Medical Benefits
Bodily Injury Liability Coverage:
Bodily injury coverage applies when you are at fault for an accident that causes injuries to another driver, pedestrian or a passenger in your vehicle. Bodily injury liability coverage may help pay for costs dealing with the other person’s medical expenses, pain and suffering, lost income, funeral costs. The minimum coverage required in PA is commonly known as 15/30 coverage $15,000 for one injured person/ $30,000 total amount available per accident). It is suggested to obtain higher than the minimum coverage to avoid being sued personally and having a judgment entered against your personal assets if your coverage is insufficient to compensate the injured individual(s).
Property Damage Liability Coverage:
Property Damage Liability Coverage applies when you are at fault for an accident that causes damage to another person’s car or property. This form of insurance will pay for the costs associated with repairing or replacing another person’s property. The minimum car insurance coverage required in PA is $5,000. At KOT Law, we have handled thousands of property damage claims on behalf of injured victims.
First Party Medical Benefits:
Required under Pennsylvania law, this coverage pays medical bills for you and others that are covered under your policy, unrelated to fault. The minimum coverage required in PA is $5,000.
Limited or Full Tort:
All PA policies are issued with either Full Tort or Limited Tort options. As seen in the name, limited tort provides you a limited right to recovery. If you select Limited Tort, you have no
right to recover damages for pain and suffering unless you sustain a serious injury resulting in death, serious impairment of body function or serious disfigurement. The only benefit of Limited Tort option is a reduction on your premiums. With full tort coverage, you retain unlimited rights to bring a law suit against the at fault party.
For a more in-depth explanation of the difference between Limited Tort and Full Tort, along with other exceptions to Limited Tort Coverage, please see What’s the Key Difference Between Full Tort and Limited Tort Coverage.
If you or someone you know has been injured in an accident and have any questions, please contact KOTLAW at 215-644-8508 for a free consultation.
This guide is not a complete summary of the Pennsylvania Auto Insurance Law. It is designed to highlight certain important features of this law and should not be considered legal advice. All individual needs must be addressed on a case by case basis. If you have any questions concerning your coverage, please contact your insurance company representative.