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.