Don’t Be Fooled By Insurance Companies

MyPhillyLawyer’s Guide to Pennsylvania Auto Insurance

You may not know that Pennsylvania law allows for more auto coverage than your insurance company tells you. You might think you are covered for an accident, or property damage, only to find out too late that you are not. This is what you should look-out for as you examine your auto and homeowner’s policies.

How Much Insurance Do You Need?

You must have:

• $5,000 minimum for medical bills for yourself and any others covered by your policy
• $15,000/$30,000 for anyone you injured in an accident. The $15,000 covers injuries to one person and the $30,000 is the total available for one accident.
• The minimum required for property damage is $5,000. If you damage someone else’s vehicle in an accident that was your fault, this coverage pays for the damage.

These are the bare minimum insurance requirements for keeping a car on the road. Carrying only this minimum leaves a vehicle owner open to significant risk. You can also purchase optional coverage, described below, which can better protect you.

What Types of Optional Auto Insurance Should You Consider?

You should consider having some of these optional coverages if you possibly can. Otherwise, you may be out of luck in a serious accident. These include:

• Underinsured and uninsured motorist coverage. This kicks in if you are injured by an at-fault driver who does not have enough insurance, or any insurance at all to pay your bills, pain and suffering and other losses and damages after an accident. For example, if you are seriously injured by an at-fault driver who has the minimum liability insurance — $15,000/$30,000 — your medical bills will probably exceed $15,000. Underinsured/Uninsured Motorist coverage can protect you and pay your damages that exceed the limit of the at-fault driver’s insurance.
• Stacking uninsured and underinsured motorist coverage. This option allows you to increase the amount of coverage on such policies by the number of vehicles on the policy. You may also set up this type of insurance to cover you under multiple policies if you have separate policies for different vehicles.
• Collision insurance. This coverage pays to repair damage to your vehicle caused by an accident. If you have a car loan, you will probably be required to carry this type of policy by the bank or lender.
• Comprehensive insurance. This type of coverage pays for damage to your car caused by something other than a vehicle accident. Typical coverages include fire, theft, flood, vandalism or hitting a deer or other animal. Like collision insurance, comprehensive coverage is usually required by lenders.

These optional coverages are the most important to consider when reviewing your policy. Insurance companies also provide coverage for funeral benefits, income loss, rental reimbursement, towing, accidental death and extraordinary medical benefits. The last type of coverage insures you up to $1 million after the first $100,000. Another coverage possibility is gap coverage, which pays the difference between the insurer’s payment and the balance of the car loan on a total-loss vehicle. This is usually available for new cars only.

The Difference Between Limited and Full Torts Coverage

Limited Tort

Limited Tort means that you can sue for limited recovery after an accident. So, while you can sue the at-fault driver for medical bills, you cannot seek payment for pain and suffering unless you have sustained a serious injury. It means that you are giving a free pass to the person or persons who caused the accident and your injuries unless some 3rd party determines that your injuries are serious. In other words, limited tort gets in the way of you being properly compensated for any on-going pain, suffering, and disruption to life-activities following an accident. We do not recommend choosing the limited tort option of automobile insurance.

Full Tort

Full Tort coverage means, beyond your medical bills, you can seek compensation for your pain and suffering. It may cost slightly more on your monthly premium, but it enables you to recover the money you will need if you’re involved in an accident. Additional compensation can help you get your life back on track, and cover any unexpected costs that arise after an accident.

It’s important to understand that Full Tort is one of the best forms of protection for your future. If you’re in one serious accident, you’ll more than make up for what you’ve paid each month. Remember, electing the Full Tort option protects you! We highly recommend that you elect Full Tort coverage for you and your loved ones.Insurance agents often use the phrase Full Coverage to denote all available coverages for property damage to your car, Full Tort coverage protects you and your family from damages caused to your body. Full Coverage does not equal Full Tort. You must make a separate and important selection to get Full Tort.

Review Your Insurance Now

Make sure you review your insurance policy carefully to make sure you are getting a good deal while protecting yourself against expenses resulting from a car accident. Remember: Once you have an accident, it’s too late to change anything.