Cheap Car Insurance Pennsylvania

It is the law in the state of Pennsylvania for vehicles that are owned, leased or rented to have insurance. The car insurance laws are designed to keep drivers, passengers, as well as pedestrians, safe. It provides a system of financial responsibility for any accident or other incidents involving vehicles and more.

No-Fault

Pennsylvania has no-fault insurance. This is a system of vehicle insurance designed to prevent fraud. An insurance company will compensate their policyholders and their passengers for injuries without regard to who is shown to be at fault. Doing this has successfully limited litigation. There is no legal contention as to who is at fault for an accident. When a driver is determined to be at fault, they will probably pay an increased insurance premium. Under certain circumstances, a person with Pennsylvania vehicle insurance may also try and obtain compensation for damages from the other driver’s insurance company. This could be in a situation involving death, disfigurement, disability and more. Vehicle policyholders in Pennsylvania can choose to not participate in the no-fault system. They can make this choice when their policy is renewed.

Determining Premiums

An insurance company considers many things when it determines its insurance rates. A married driver with a high level of education will receive better rates than a single person with less education. It won’t matter if their driving records are similar. Other factors taken into consideration are a person’s credit score, occupation, location, age, type of vehicle to be driven and more. Insurance companies will use information from all these factors and more to determine premiums.

Required Coverage

All Pennsylvania residents who own, rent or lease a vehicle must meet liability coverage requirements to be in compliance with the law. Every insurance policy must cover bodily injury as well as property damage and provide first party benefits. This coverage is designed to help pay for any medical expenses resulting from injuries associated with a vehicle accident. These are medical expenses paid to the policyholder, individuals listed on the policy and more. The minimum amount of coverage for medical benefits in a policy must be $5,000.

Proof Of Insurance

The state of Pennsylvania requires all those who operate vehicles to have proof of insurance every time they drive. During traffics stops, a person could be asked to show their driver’s license, vehicle registration as well as proof of insurance. In Pennsylvania, an ID card issued by an insurance company is acceptable proof of insurance. A signed letter from an insurance company describing coverage, insurance binder as well as a copy of declaration page from the insurance policy are also acceptable forms of proof of insurance.

Self Insurance

In Pennsylvania, a person can be approved to provide their own vehicle insurance. This is possible when a person obtains, and completes a self-insurance application, as well as security agreement, and master self-insurance agreement. They will be required to provided a current balance sheet and income statement. They will also be required to provide a security deposit of $50,000 for the first vehicle. After that, every vehicle that is self-insured will require the payment of an additional $10,000.

No Vehicle Insurance

Individuals who are proven to have driven their vehicle without insurance coverage will face consequences. These will be imposed by the Pennsylvania Department of Transportation (PennDOT). A person could have their vehicle impounded. They could also be given a minimum $300 fine. A person’s driver’s license and registration could also be suspended for a period of up to three months. When a vehicle’s registration has been suspended, it cannot be legally driven. Once the suspension is over, a person will be required to pay $88 for new vehicle registration as well as $88 for a new driver’s license.

Assigned Risk Insurance Plan

In the state of Pennsylvania, all licensed drivers are provided the opportunity to obtain vehicle insurance. If an insurance company believes an individual’s driving record shows they are a high-risk driver, the company is not required to sell them vehicle insurance. A high-risk driver will have a difficult time obtaining vehicle insurance. They will always be able to obtain it under the Pennsylvania Assigned Risk Plan (PARP). All vehicle insurance companies doing business in Pennsylvania must accept individual under the PARP plan.

Optional Coverages

When an individual in Pennsylvania purchases vehicle insurance, they will have the option to purchase higher limits than what is required by law. They are also able to buy optional vehicle insurance products.

*COLLISION: This will provide coverage if an individual’s vehicle is hit by something or something hits the vehicle.

*COMPREHENSIVE: This will provide coverage for damage that results from something other than a collision. This could be theft, storm damage, vandalism and more.

*UNINSURED: This will cover medical bills when a policyholder is involved in an accident with a person who has no vehicle insurance.

*UNDERINSURED: This will provide coverage for medical expenses, up to a designated limit. This covers medical expenses that are more than the coverage limit provided by the insurance of the driver responsible for the accident

*RENTAL CAR REIMBURSEMENT: This covers the cost of renting a vehicle during the time a policyholder’s vehicle is repaired or replaced.

*TOWING: This will cover the costs involved with towing a vehicle to a repair shop after an accident and more.

Discounts

It’s possible for people to get discounts on their insurance for a number of reasons. Multiple insurance policies with the same company, vehicle safety features, good driver status, insurance policy paid in full and more.

Lending Vehicles

There are a number of factors involved to determine if a driver has insurance coverage when they borrow another person’s vehicle. The standard rule is the insurance coverage will follow the vehicle. Insurance companies recommend policyholders be careful when it comes to lending their vehicle to someone. It may be important to know the person’s driving record. It’s also advised not to loan a vehicle to a newly-licensed driver. Insurance companies recommend a policyholder never let a high-risk driver use their vehicle.

Coverage Lapse

It is important for a person to not let their insurance policy lapse. Should this happen, a person’s vehicle registration could be canceled for a minimum of 90 days. Unless this happens under certain circumstances, a person’s license will also be suspended for 90 days. Prior to a person getting back their registration or license, they will have to pay a reinstatement fee of $50. A person will then be required to show they have active vehicle insurance coverage before the reinstatement is complete. The insurance policy a person does receive will be not be provided with preferred rates but with non-standard premiums.