Pennsylvania Auto Insurance Laws and Regulations

From Pittsburgh to Philadelphia and everywhere in between, drivers in the Keystone State must maintain adequate car insurance to take to the state’s roads safely. All auto insurance policies in Pennsylvania must have a set of minimum coverages, and all drivers in the state must carry car insurance.

In Pennsylvania, state insurance laws mandate that all drivers carry at least $15,000 of bodily injury liability per person, $30,000 of bodily injury liability per accident, $5,000 of property damage liability per accident (15/30/5 liability coverage), and $5,000 of first party medical benefits (FPMB), otherwise known as personal injury protection (PIP) per person.

If you finance or lease your vehicle, your lender or leaser may require you to have collision and comprehensive coverage on your policy, too.

Drivers in the state are also required to select either a limited or full tort option. These tort options determine the policyholder’s right to sue another driver in an accident for financial compensation. 

As long as your policy contains minimum liability coverage and FPMB, you’re adequately protected under state law. However, you may find that you’re uncomfortable with such minimal coverage. You can always opt for a full coverage policy with higher liability limits and several optional coverage types to feel more protected on Pennsylvania’s roads.

Pennsylvania auto insurance laws require all drivers to have 15/30/5 liability coverage and at least $5,000 of FPMB or PIP per person, depending on your tort option. All drivers must decide if they would like a full or limited tort option on their policies, setting limits to suing capabilities in the event of an accident that causes injury.

Pennsylvania has a version of a no-fault law, which mandates drivers to carry first-party medical benefits or PIP. The state has a unique spin on the no-fault law. Still, it follows the general pattern of requiring drivers to carry first-party medical benefits, or PIP coverage, to help cover their own medical expenses. 

A policyholder’s tort option on their policy directly correlates with the state’s no-fault law. In short, if policyholders elect to carry limited tort, they opt into the no-fault system. Conversely, if policyholders elect to have full tort, they opt out of the state’s no-fault system.

Pennsylvania car insurance laws are also referred to as Pennsylvania motor vehicle financial responsibility laws, which encompass a policyholder’s rights and responsibilities when injured in a car accident. The insurance coverage a policyholder elects to carry determines their financial responsibility when an auto accident occurs. 

With lower coverage limits, policyholders subject themselves to more financial responsibility should they be involved in a car accident. Higher coverage limits correspond with lower financial responsibility for the policyholder since they opt for more coverage from their insurance.

Pennsylvania car accident laws require policyholders who would like to make a claim to receive compensation to help cover their medical expenses to do so within two years of the date of the accident. The sooner you file a claim, the better.

Knowing when, how, and with whom to file a claim can get tricky, so let’s break it down.

Liability coverage protects those injured in an accident caused by the policyholder. To invoke liability coverage, the injured victim of the accident will file a claim with the at-fault party’s insurance. Suppose the policyholder carries the minimum liability coverage required in the state. In that case, their insurance may cover $15,000 of bodily injury liability per person, $30,000 per accident, and $5,000 of property damage liability per accident. 

If the injured victim of the accident accrues medical expenses that exceed the policyholder’s coverage limits, the policyholder may be on the hook to pay for the remainder of the medical costs out-of-pocket.

Liability coverage doesn’t help cover the policyholder’s medical costs, but there are optional coverage options that provide first-party medical benefits, like PIP or medical payments coverage (MedPay). Many states have a low limit of how much PIP a policyholder can carry, so MedPay kicks in once PIP runs out.

Filing a claim to receive first-party medical benefits, or PIP, is the opposite of filing a claim to receive liability coverage benefits. FPMB protects the insured policyholder and will kick in to cover their medical expenses up to their coverage limit after they meet their deductible. The policyholder would file a claim with their own insurer to receive financial assistance.

Policyholders who select a limited tort option on their auto insurance policies opt into the no-fault system and essentially waive their ability to file a claim with the at-fault party’s insurance or sue the at-fault party for pain and suffering caused by the accident. There are exceptions to this rule, but, in short, those who opt for a limited tort option will most often default to filing a claim with their own insurance to receive FPMB.

Policyholders who select a full tort option on their auto insurance policies opt out of the no-fault system and maintain their ability to legally pursue the driver responsible for a car accident that causes pain and suffering. Those with a full tort option will often default to filing a claim with the at-fault party’s liability coverage should they require assistance covering medical expenses. If the at-fault party doesn’t have adequate coverage, the policyholder may opt to sue the at-fault driver for compensation.

Pennsylvania car insurance requirements state that all drivers must carry 15/30/5 liability coverage, $5,000 of FPMB, and select either a limited or full tort option on their auto insurance policies. The tort option a policyholder selects determines with whom the policyholder may file a claim in the event of an accident.

The laws in the Keystone state require very few auto insurance coverages and mandate low Pennsylvania state minimum auto insurance limits compared to other states. While the best auto insurance policy for you may be the cheapest in the state, that may not be the best for other drivers. When selecting an auto insurance policy, most policyholders must find a compromise between coverage and cost.

Those who value coverage will likely opt for a full coverage policy with several optional coverage types. Those who value cost will likely opt for the minimum coverage required in the state.

Pennsylvania auto insurance minimum requirements mandate all drivers must have a minimum of 15/30/5 liability coverage, $5,000 FPMB. Uniquely, drivers in the state must also elect either a limited or full tort option on their auto insurance policies, which indicates whether the policyholder wants to opt into or out of the no-fault system.

While those who opt to carry the state minimum mandated coverages and no more are adequately insured in the eyes of the law, there may be better courses of action. Suppose a policyholder with the minimum amount of coverage causes an accident that costs the other driver more than $15,000 in medical expenses, which isn’t unusual in America. In that case, the policyholder will be responsible for paying the remainder out of their own pocket.

Opting for a full coverage policy will be more expensive than a minimum one, but it will offer far more protection. A policy with higher liability limits than what’s legally required, plus comprehensive coverage, collision coverage, uninsured/underinsured motorist coverage (UM/UIM), and a higher PIP limit, offers much more protection to Pennsylvanians on the road and in their wallets.

Pennsylvania’s liability car insurance numbers are 15/30/5, which express the minimum amount of required liability coverage in the state. These numbers correspond with coverage limits for bodily injury liability per person, bodily injury liability per accident, and property damage liability per accident and are expressed by the thousand.

So, 15/30/5 liability coverage means the injured party in an accident caused by the policyholder may have access to $15,000 of bodily injury liability per person, $30,000 of bodily injury liability per accident, and $5,000 of property damage liability per accident. Bodily injury liability will kick in to help the injured victim and their passengers pay for their medical expenses. Property damage liability will kick in to help cover the costs of repairs to the victim’s vehicle if it was damaged in the accident.

Auto insurance in Pennsylvania can be challenging to understand, primarily due to its unique no-fault law. Let’s look at some frequently asked questions regarding car insurance laws and requirements in the Keystone State. 

All Pennsylvanian drivers must have an auto insurance policy that meets state requirements. Pennsylvania’s standard auto insurance policy meeting these requirements has 15/30/5 liability coverage, $5,000 of FPMB, and a limited or full tort option. 

If your policy meets these requirements, you’re adequately insured by law but may not be completely protected. For example, a policy with minimum liability coverage may not protect against uninsured drivers. Adding UM/UIM, comprehensive, and collision coverage to your car insurance policy will better protect you against inadequately insured drivers. While only about 6% of drivers in the state are uninsured, it’s still better to be safe than sorry.

In Pennsylvania, liability auto insurance with a limit of 15/30/5 and at least $5,000 of PIP is required coverage for all drivers. Drivers who don’t have the required amount of coverage may face fines, license suspension, or registration suspension. 

In Pennsylvania and many other states, coverage will follow the car or the driver, depending on the coverage type. Coverages like collision coverage, comprehensive coverage, and property damage liability will follow the car because they cover the cost of car repairs. Depending on your limits of liability in Pennsylvania, it will cover the cost of medical expenses to the victim of an accident caused by someone driving the policyholder’s car.

In many states, including Pennsylvania, PIP is one of the only coverages that follows the driver. That means if someone else drives the policyholder’s vehicle and gets into an accident, that driver’s PIP will kick in to cover their medical expenses, not the vehicle owner’s PIP.

Yes, car insurance is mandatory in Pennsylvania. Not only is car insurance mandatory, but it’s essential to have a policy that will protect you wherever the road takes you. While the law mandates all drivers must have at least 15/30/5 liability coverage and $5,000 in PIP, that may not be enough for every policyholder.

Finding the sweet spot in coverage and cost when getting your auto insurance policy is crucial. A good rule of thumb is to have coverage that makes you feel protected on the road and aligns with your savings. Remember, once you reach your coverage limit when you file a claim, the excess funds will have to come out of your own pocket. We always recommend carrying ample coverage, so your wallet doesn’t suffer in the event of a serious accident.

The Pennsylvania minimum auto insurance coverage all drivers need is 15/30/5 of liability coverage and $5,000 of PIP. While having what you need, by law, protects you from legal repercussions, it may not fully protect you on the road. The best auto insurance policy for you may be the cheapest or one with expansive coverage for a higher cost. 

The best way to find a policy that suits your needs is to shop around online for quotes. Getting and comparing quotes allows you to check the coverage options and prices from several insurers to make an informed decision when selecting your policy. 

Luckily, you’ve come to the right place. You can get a free quote in minutes using our quoting tool here at Clovered. If you prefer to chat with an agent to get your quote or answer any of your questions about car insurance laws in Pennsylvania, call us at 833-255-4117 or email us at [email protected].