Is there a law or something in Pennsylvania that states that car insurance providers may cancel or a vehicle 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 are convicted of DUI/DWI
• If you did not pay your vehicle insurance policy premium
• If you get involved with 2 or more accidents of the same type within thirty six months wherein you are found at fault

If your car insurance providers cancels or non renew your vehicle insurance policy in Pennsylvania, they should they send you notification or written explanation 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.

I am only eighteen years old and I receive a DUI in Scranton, Pennsylvania, I went through the ARD program and I would like to know if my auto insurance will go up at all?

Charles

Scranton, PA

In Pennsylvania they permit for an Accelerated Rehabilitative Disposition (ARD) for 1st offense of DUI. When a DUI offender is accepted into an ARD program the state suspends their charges however they are required that certain court ordered conditions are met. These conditions may include community service, drug and alcohol counseling, etc.

The Pennsylvania Insurance Department states that if you are convicted of an alcohol related violation such as DUI in Scranton, Pennsylvania, whether or not you complete an ARD program, your license will be suspended. This alone is a valid reason for insurance providers to increase rates, non-renew or cancel your insurance policy.

Why do insurance carriers ask Pennsylvania (PA) residents if they commute or work in NJ or NY? Does that increase your insurance rate?

Allan

Erie, PA

Insurance providers differ in their rating systems so it is possible that some insurance companies within Pennsylvania include usage of the vehicle, meaning in this example commuting out of state into NY and NJ for work, could be used as a rating factor.

It is likely that driving into New Jersey and New York on a regular basis may find you to be a higher risk driver to an insurance provider since those states may have higher statistics of uninsured motorists and/or accidents. Risk analysis is what insurance carriers use when determining your car insurance premiums. Risk is probability; the probability that you will get involved in an accident and the probability of the severity of the incident.

It look like the PA laws permit usage of the vehicle, such as commuting into NJ and NY can be used to help assess your insurance rate. Whether it will increase your car insurance rate or not will depend upon the individual insurance carrier’s rating system so you can ask if working in or commuting to New Jersey or New York will affect the cost of your insurance.

Is my 16 year old teenage son required to be added to my insurance policy simply because he has his license, or can he just borrow my insured car until she gets his own car? What are the ramifications (if any) if I didn’t add him and there was an accident? We live in PA.

Carrie

Allentown, PA

Pennsylvania insurance providers guidelines vary but in general insurance companies will require you to list all licensed motorists in your household on your insurance policy. Since you son has received his license your car insurance company should be notified and they will tell you if you are required to add him or not, most likely you will need to add him in order for his to have coverage.

If you do not inform your Pennsylvania insurance provider about your son being licensed and he is not added to the policy then he may not be covered if in case of an accident. Or we have heard of situations in which the teenager would be covered for the accident but only after you have paid the premiums that should have been paid for your teenage son to be on the policy and properly covered.

I am under 18 and I receive a DUI in Philadelphia, Pennsylvania. If I go through the ARD program, will my car insurance go up at all?

John

Philadelphia, PA

They permit for an Accelerated Rehabilitative Disposition (ARD) for first time DUI offenders in Pennsylvania. When a DUI offender is accepted into an ARD program the state will then suspends their charges however they will require that certain court ordered conditions are met. These conditions may include community service, drug and alcohol counseling, etc. In addition to a probationary program the ARD program requires a period of supervision.

The ARD is a one-time alternative to a conviction, trial, and possible mandatory jail sentence for the conviction of driving under the influence in Pennsylvania. There is a $500 processing fee and you can expect to pay a fine, a fee for alcohol safe driving class, court costs,and a probation supervision fee.

The Pennsylvania Insurance Department states that if you are convicted of a DUI, whether or not you complete an ARD program, your license will be revoked or suspended. This alone is a valid reason for insurance providers to increase insurance rates, cancel or non-renew your policy.