According to the survey results, only 21% of respondents to a study of more than 1,000 vehicle insurance customers would receive a passing grade (D+ or higher) for knowing the criteria that insurers use to establish coverage.
Many clients who contact us after an accident are entirely unaware of their policy details and are taken completely by surprise when they learn that their insurance doesn’t cover their needs. It is crucial to comprehend these fundamental components of your policy, at the very least, for this reason.
To determine the best course of action for your legal case, consult with Philadelphia, PA personal injury attorneys.
Understanding Pennsylvania’s minimum requirements for auto insurance
Anyone who owns a vehicle is required by law to provide documentation demonstrating their financial capacity to cover accident-related costs. A driver’s auto insurance purchase is typically how they show their financial responsibility. The requirements for minimum auto insurance coverage are established by each state, along with the benchmarks that must be met. The minimal coverage required by law will ensure that you comply with the law, but it won’t guarantee that you are “completely covered” and won’t cover many of your needs in the event of an accident.
Three fundamental types of insurance are needed in Pennsylvania.
- Medical benefits — This insurance compensates for the medical costs of you and your family, regardless of who is at fault. A $5,000 minimum amount of coverage is required.
- Liability for bodily injury – You must also have liability insurance with a minimum limit of $15,000 per person and $30,000 per accident. This covers other people’s medical costs and other damages if you’re at fault.
- Liability for property damage – This insurance will cover the costs if you cause damage to someone else’s property. You are allowed to carry $5,000 in total as a minimum.
Essential Coverages to Take Into Account
You can see why the bare minimum state-mandated coverages won’t be much assistance if you ever get into a catastrophic accident. For instance, a hospital bill for even semi-serious injuries will cost more than $5,000 in medical coverage. Additionally, the worth of the majority of autos far exceeds the $5,000 property damage liability cap. You’re out of luck if you total a more recent vehicle.
You should think about raising the policy limitations on your fundamental insurance.
There are a mind-boggling number of auto coverages and add-ons you would want to consider, including rental reimbursement, income loss, funeral payments, accidental death benefits, and gap coverage, to mention a few.