Pennsylvania Auto Insurance: Auto Insurance Basics

If you drive in Pennsylvania, you know how crazy it gets out there. Accidents happen, fenders get bent, people get hurt. Or you're innocently parked in your driveway and a tree limb crashes through your windshield. When disaster strikes, auto insurance is there to protect you.

Why buy auto insurance in Pennsylvania?

1.) Auto insurance protects you against the financial risk associated with personal injuries and property damage caused by auto accidents, theft, vandalism, or natural disasters.

2.) Pennsylvania requires you to purchase at least a minimum amount of liability coverage. Other types of auto insurance coverage may be optional or required, depending on state regulations.

3.) If you have a car loan outstanding, you'll generally be required by the lender to purchase at least a minimum amount of auto insurance.

Liability coverage
Pennsylvania law requires you to purchase a minimum amount of some or all of the following types of liability coverage:

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• Bodily injury liability: Protects your assets if you are held liable for an auto accident in which other people are injured or killed.
• Property damage liability: Covers repairing or replacing the autos or other property of other people.
• Uninsured/underinsured motorist coverage: Unless you live in a "no-fault" state (where your own insurance will cover your losses), this coverage insures you against losses caused by other drivers with little (underinsured) or no (uninsured) auto insurance.

To adequately protect yourself, you may want to purchase much more than the minimum amount of coverage required for Pennsylvania.

Collision, other-than-collision, and medical payments coverages
Although these types of coverage are optional in most states, it often makes sense to purchase them, unless you can afford to pay for damages yourself.

• Collision: Pays to repair or replace your car if it's damaged in an accident.
• Comprehensive: Insures your car against damage caused by something other than an auto accident (e.g., theft, fire, flood, vandalism).
• Medical payments or personal injury protection: Covers various medical expenses not covered by your health insurance or your passengers'.

Driving a good bargain
Many factors affect your auto insurance premiums, including your age, the state in which you live, the make and model of your car, where your car is garaged, and your driving record. Although you can't do much about some of these factors, here are some things you can do to help lower your premiums:

• Increase your insurance deductible.
• Eliminate optional coverages (e.g., towing and labor, rental insurance) from your auto insurance.
• Eliminate collision and comprehensive coverage if you drive an older car valued at less than $1,000 and could afford to pay for repairs if necessary.
• Ask about available discounts (e.g., low-mileage discounts, discounts for safety or antitheft devices) for your auto insurance.
• Avoid buying a vehicle that is prone to theft or expensive to repair.
• Keep your car in a garage.
• Drive safely to establish a good driving record.

Please note that this description/explanation is intended only as a guideline.