Auto Insurance In Pennsylvania – How To Get Cheaper Rates?
Reader’s Question:
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.
Borrowing an Uninsured Car Will My Policy Cover an Accident?
Reader’s Question:
I am from Pennsylvania, and I usually drive my friend’s uninsured car. Will my auto insurance cover it if I get involved in an accident?
Betty
Lancaster, PA
Pennsylvania is one of the largest states that adopted the no-fault law. The no-fault law states that if there was a car accident, the parties involved will be covered by their own car insurance company regardless of who was responsible for the mishap. This no-fault law is an attempt to minimize delays and red tape. Lengthy lawsuits trying to determine who was at fault and who needs to pay who can be quite tedious and bothersome.
In your case, before you borrow anybody’s car, be sure to verify if it has auto insurance coverage. Your friend has to obtain his or her own insurance coverage for the car. It is against the law to acquire a vehicle and not have it covered. This is because every federal government requires its motorists to have financial responsibility if they cause unfortunate accidents. So your friend is obligated to insure it.
If ever you get into an accident while driving your friend’s car, then his or her insurance will kick in first. Your auto insurance policy will be a back up to your friend’s coverage if it so happens that his or her policy limits cannot pay for all the expenses incurred following an accident.
What Kind of Car Insurance Coverage Should I Get in Pennsylvania?
Reader’s Question:
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.
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