Auto Insurance Requirements in Pennsylvania
To ensure all Pennsylvania residents are able to pay for the damage they're responsible for after a car crash, state law requires all motorists to purchase car insurance. Pennsylvania is one of 12 states that have adopted no-fault auto insurance, which requires insurers to pay for their own insured drivers' medical expenses, regardless of who is at fault for an accident.
Pennsylvania required car insurance coverage
Required min. limits | |
|---|---|
| $15,000 per person/$30,000 per accident | |
| $5,000 per accident | |
| $5,000 per accident |
You are responsible for showing proof of insurance and a driver's license whenever you operate a vehicle in Pennsylvania. Your insurance company mails you an ID card, but a copy of your policy's declaration page or signed official letter from your carrier is also acceptable. If you have a policy with the Pennsylvania Assigned Risk Plan, a copy of the application signed by an insurer will suffice.
Pennsylvania car insurance coverage requirements and minimums
In addition to the bodily injury and property damage liability coverages mandated in almost all states, Pennsylvania's minimum policy requires first-party medical benefits. In other words, your insurer will have to pay for your medical care and bills in a car accident, whether or not you caused it. This makes Pennsylvania a "no-fault" state, which means that if you're in a crash, your own insurance will usually pay for your own medical bills, while the at-fault driver's insurance will pay for the cost to repair any damaged vehicles or other property.
Bodily injury (BI): $15,000/person, $30,000/accident
Requirement
- Up to $15,000 per injured person
- Up to $30,000 per accident for two or more injured persons, combined
Covers
- Your personal assets
- Legal fees in the event that the other party sues you, up to the stated limit
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Does not cover
- Your own medical bills
Property damage (PD): $5,000/accident
Requirement
- Up to $5,000 per accident
- No more than $50,000 for each accident
Covers
- Everything from the other driver's car that's damaged
- Other property that is damaged in the accident (buildings, fences, etc.)
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Medical benefits (PIP): $5,000/accident
Requirement
- Minimum of $5,000 for the insured driver per accident
Covers
- Medical attention that is necessary and reasonable
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A minimum policy may get you low-cost car insurance in Pennsylvania, but we recommend that you consider higher limits and additional coverages based on the total assets you have to protect, as they will be exposed if someone you injure in an accident decides to sue you. Additional limits and coverages vary by insurer.
Uninsured/underinsured motorist (UM/UIM) is an optional coverage that you must reject in writing if you don't want it. This coverage provides BI and PD coverage for people on your policy and your passengers in an accident caused by an uninsured or underinsured motorist. It has the same split limits as regular BI and PD, and while higher limits may be available, they must be lower than your policy's BI limits. However, if you choose to stack your UM/UIM coverages, and have multiple cars or policies under your name, you can collect up to the combined individual limits.
Optional first-party benefits
First-party benefits define no-fault insurance. Typically, these include medical benefits, as well as income loss, accidental death and funeral benefits. In Pennsylvania, the minimum medical benefits coverage only reimburses policyholders for medical expenses. There are other benefits (listed below) that you can add to your policy for an additional premium.
Note that if you modified your car from its original factory finishes without the insurer's knowledge, you will not be able to receive first-party benefits if you get into an accident while driving it.
Income loss
When a car accident leaves you and passengers who are also insured on your policy unable to work, your insurer will compensate you for 80% of your income, up to $2,500 per month, until you reach a total of $50,000.
Accidental death
If anyone under your policy dies as a result of a car accident within 24 months of the accident date, at least $25,000 is paid to the beneficiary of the policy.
Funeral benefit
If a policyholder passes away as a result of a car accident within 24 months of the accident, these benefits cover at least $2,500 for expenses related to the funeral, burial, cremation or other form of disposition.
Combination
Instead of separately purchasing the three optional benefits above, you can combine them and get covered for at least $177,500.
Extraordinary medical benefit
This benefit, available in increments of $100,000, may pay up to $1,100,000 for all medical expenses resulting from an accident.
Cheapest companies in Pennsylvania for minimum liability
Your right to sue
In Pennsylvania, you have the option of choosing between two rights to sue — limited versus full tort — when purchasing the policy. This restriction was implemented in part to reduce the backlog of cases and administrative burden in court without. The choice is binding until the policy's renewal. The two tort options are:
Limited tort
Limited tort is the lower-cost option of the two. When you choose the limited tort option, you can only sue the other driver for medical or economic losses that they were at fault for and their insurance didn't cover. You will not be able to sue for pain and suffering (noneconomic losses) from an accident, unless:
- You were a passenger in a non-private passenger vehicle, which may include a bus, train or taxi, when the accident happened
- The accident was due to a defect of the car or negligence on the part of your auto body shop repairman
- The negligent driver was uninsured, operating a car registered in another state, driving drunk or intending to injure themselves or another person
If you meet one of the three exceptions above, you are able to sue the at-fault motorist for medical, economic and pain and suffering losses, despite having a limited tort right to sue in Pennsylvania on your car insurance policy.
Full tort
Full tort is the higher-cost option of the two. However, drivers who elect to go with full tort will have rights to sue for both medical costs and noneconomic losses sustained from any given accident.
Acceptable alternative proof of financial responsibility
There is one alternative to purchasing an auto insurance policy in Pennsylvania, and that is to become a self-insurer. However, drivers have to meet specific qualifications and essentially prove that they have the financial means to insure themselves. Once they're approved, the Pennsylvania Department of Transportation (PennDOT) will issue a certificate as proof. In most cases, Pennsylvanians will find that getting a policy through an insurer is the easiest and more affordable way to go.
To opt for self-insurance, you will need to provide financial documents, such as a balance sheet or income statement, from the previous year and a bond or security to serve as a deposit to pay any future liability claims for an accident you cause. The amount of security or bond will be based on the number of vehicles you own: at least $50,000 for the first vehicle and $10,000 for each subsequent vehicle, up to a maximum of $1,000,000. Examples of acceptable forms of bond or security include:
- US currency: Includes cash, US Treasury bills and notes
- Escrow deposit: In a federal or state bank, credit union, or savings association that is federally insured. This is valid as long as the sole purpose of this deposit is for security as a self-insurer
- Irrevocable letter of credit: A guarantee letter issued by any Pennsylvania bank or a bank approved by PennDOT
- Surety bond: Issued by an insurer licensed for surety business in the state
- Corporate bond: Issued by a corporation that is rated A or better by Moody's
- Other security: You may petition other securities with PennDOT for approval
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