How does auto insurance work in Pennsylvania? I mean, what can I do to get a lower rate, it seems like a total racket. :)

Harold

Philadelphia, PA

There are numerous large states in the US that are considered as no-fault state and Pennsylvania is one of them. Drivers involved in the traffic accident in a no-fault state must pay their own expense no matter who is held responsible. This policy helps control of annual lawsuits.

Still, there are ways to go around this rule. A victim of a critical accident where the total expense shoots further from the insurance medical expense limit can demand the driver accountable to the accident to shoulder the expenses. Because of this, people living in Pennsylvania are obliged to take along with them their liability insurance to cover expenses of the suffered person. The minimum medical coverage of auto insurance in Pennsylvania vary from thirty thousand for the combined medical expense of more than one victim, fifteen thousand for single victim and five thousand dollars for damages on property. The victim’s car repair expense is covered as well.

Auto insurance coverage such as collision and auto insurance policy are very much encouraged to motorist. In times when a driver is accountable to an accident, the insurance coverage will pay the cost of all repairs needed his/her car. Drivers without this type of coverage will bear all the expenses of his/her car repair expense.

In some states such as New York, liability insurance is not mandatory. Consequently, uninsured cars causing traffic accidents bring about big problem to their victims. The insurance company will settle the medical expenses and property damages of the victim with uninsured motorist coverage. Accidents like hit and run are also included.

There are states in the US like Pennsylvania that considers auto insurance as a financial burden. On the other hand, motorist still has many approaches in searching for a cheaper insurance rate. Aim to continue using a decent lower model car that is in running condition. Avoid SUVs and expensive car models if you are preparing to purchase one. Ultimately, gather rates from different insurance companies and use these rates as point of reference and comparison.

I am planning to buy car insurance in PA but I would like to know if I need to get drivers license first to purchase insurance? What auto insurance companies in Pennsylvania are the easiest to work with and have the best rates?

Lee

Philadelphia, PA

No, you do not need to get drivers license to get Pennsylvania automobile insurance.

Although you can buy automobile insurance without your drivers license, if you just moved in PA you will need to get drivers license to register and title your vehicle.

The minimum liability limits required in the state of Pennsylvania are:

• $15,000 for injury or death of one person in an accident
• $30,000 for injury or death of more than one person in an accident
• $5,000 for damage to property of another person

This insurance is usually referred to as 15/30/5 and it is better to get higher limits to better protect yourself and your assets.

If you are leasing your car, your lien holder may require you to get physical damage liability of collision and comprehensive coverage.

How can I lower my car insurance cost. I’m a single parent here in Pennsylvania.

Bernice

Philadelphia PA

Single parent car insurance discounts can be reasonably cheap if the right steps are done to lower premiums.

Firstly, if a child is born, the single parent needs to notify his insurance company. As one becomes a parent, he is perceived as being less risky by the insurance companies, as such, premiums should become lower.

In order to lower the insurance cost of single parents, one may combine multiple coverages and policies with one company. Some car insurance companies offer homeowners and renters insurance that can be combined in one account with a discount.
One more way to lower single parent car insurance is to raise deductible levels. Doing this can have a significant impact on insurance for single parents and aid in controlling costs.

Can you tell me if there a law in existence in Pennsylvania that says that car insurance companies can just cancel a car insurance policy because of accidents wherein you are at fault?

Mark

Philadelphia, PA

According to the Insurance Department of Pennsylvania car insurance companies are allowed to cancel or non-renew policies for certain reasons. The reason may be:

• If you have not paid your vehicle insurance policy premiums
• If you have been involved with 2 or more accidents of the same type within 36 months wherein you are found to be at fault
• If you have been convicted of DUI/DWI

If your car insurance providers cancel or do not renew your vehicle insurance policy that you purchased to drive in Pennsylvania, they should send you notification or a written form explaining why they are canceling or non renewing your vehicle insurance policy.

If however you disagree with your car insurance carrier’s decision or explanation, you can always send a letter to the Pennsylvania Insurance Department why you do not agree with the cancellation or non renewal of your vehicle insurance policy in Pennsylvania.

If there’s a third party liability, then what’s the coverage for first and second party liability? I don’t think I’ve heard of those here in Erie, PA. I just got my first car and I don’t know what kind of insurance to get.

Chuck

Erie, PA

You are one confused kid, I tell ya. Okay, let us get all the terms clear here, all right? The term first party refers to you, the policy owner who entered in to contract with the second party, which is the car insurance company. So, yes you were correct about not having heard of the first party and the second party liabilities before because in Erie, Pennsylvania and in any other state for that matter, the most common and most sought-after kind of insurance coverage is the third party liability. Well, of course, you got the idea of second party all wrong. Seriously now, the third party refers to the other person or other persons who are involved in the accident, and they are the people to whom the damage is done, whether in terms of body injuries or damage to property. So in a nutshell, the coverage of the first party liability includes the policy owner, his or her passengers. The third party liability, on the other hand, covers property damage and bodily injures on other people as a result of the accident, so you won’t have to worry about paying for repair bills and medical expenses. And there’s no such thing as second party liability, which is like saying that it’s the vehicle insurance company that caused the accident.

Tags: auto insurance, auto insurance coverage

I recently moved to Scranton, Pennsylvania and I have a Delaware license. I am planning to buy a vehicle. Do I have to switch to a PA license before I can obtain vehicle insurance in Scranton?

Jake

Scranton, PA

You should be able to insure a vehicle in PA with your DE driver’s license but it would be advisable to change over your Delaware license to a Pennsylvania license before purchasing, registering and insuring a vehicle just to make the whole process easier. You will need to go to the PA Bureau of Motor Vehicles to get a Pennsylvania driver’s license and register and title a car in this state.

The PA Department of Transportation (PennDOT) states that all new residents with out-of-state non-commercial driver’s licenses must get a Pennsylvania Driver’s License within sixty days of establishing PA residency.

If you do buy and insure a vehicle in Scranton Pennsylvania before you exchange your DE driver’s license for a PA license then once you do obtain your PA license, during the sixty day period you have after you becoming a resident of PA, you need to tell the insurance provider of your new license.

Call me vain but I have made who have spent thousands upgrading my vehicle. I am renewing my auto insurance policy in no time and I just wonder if my upgrades will shoot my auto insurance premiums in Lancaster, Pennsylvania.

Arnold

Lancaster, PA

If you are one of the thousands of people who have made after-market changes to your car, you are not really vain. You are just a normal person who wants to get things better.

Whether its shiny new rims or some engine upgrades, you may have unknowingly changed the car insurance policy that you have in Lancaster, Pennsylvania. It’s a little known fact that car insurance companies in Pennsylvania PA typically do not insure you for any after-market changes you’ve made to your vehicle. Do you know that some changes can even completely cancel your policy?

You better ask if your insurance company in Lancaster have a problem with you adding a DVD player or expensive sound system to your car. Many insurance companies simply do not know how to determine an accurate and fair policy for vehicles that have made numerous modifications.

Other insurance companies determine their rates by looking through dozens of statistics for each model of car. This will give data as how much it costs to make certain repairs and what the vehicle’s market value is. When you change your, those statistics are no longer accurate.
But since it cannot be helped that many people modify their cars without even telling their insurance company, they’ll get to keep their current policy. Be wary though since your current modifications won’t be covered in an accident or robbery if you do not disclose such changes to your current insurer and still renew with them.

I have a refurbished car which I occasionally use to drive around Levittown, Pennsylvania. I have made a few modifications with it in the past 8 months and I wonder if there is anything I need to know about insuring it with a renewed auto insurance policy.

Monica

Levittown, PA

When you upgrade your vehicle and stick with your insurance policy, you might end up under insured. Although that can be relative to the number and amount of changes you made as upgrade.

Numerically speaking, insurance policies are computed based on appraisal of your vehicle. Now if you have made many modifications which improve your car’s performance or features, like a better engine or a higher-end sound system, it would result to your car’s value to increase. However, since most people do not like to spend higher auto insurance premiums, these modifications normally do not reflect in the policy.

In my own opinion, if you get to renew your policy with the same insurer in Pennsylvania, then you better ask about the implications of your upgrades to you policy and see if those will be covered. I believed any changes will not hurt you so much compared to having to be drained if those upgrades would get stolen or damaged by accident.

The rule of thumb here is that if you make any modifications to your car, find out immediately if they’re covered by viewing your insurance policy. Most insurance companies are infamous for their tricky wording, exclusions, and conditions, so it will be your responsibility to read carefully…especially the fine prints.