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Different Types of Auto Insurance in Pennsylvania and the Requirements for Self-Insurance

If you are a passenger, a driver or an owner, you must understand what could be the possible outcomes of automobile insurance in Pennsylvania for a person involved or charged with an accident.

CheapAutoInsuranceInPennsylvaniaFor bodily injury Pennsylvania, state law needs $15000 as a minimum coverage per person and up to $30000 as the total price of everyone injured in an accident. This is known as the ‘Liability Coverage’ under auto insurance in Pennsylvania. You must follow this mandatory asset.

The second type of coverage is known as the ‘First Party Coverage’ that was initially familiarized as Personal Injury Protection or PIP. Regardless of who is responsible for the casualty and accident, if the injured person needs to be hospitalized for the treatment the medical bills would be paid through this type of coverage. The minimum coverage enforced by law is $5000.

However, these are only minimum standard enforced by the law for Pennsylvania car insurance. It is always advised to have much more protection than the minimum standard.

Now it is time to talk about optional coverage in regards to auto insurance in Pennsylvania. There are three types of optional coverage; they are Collision Coverage, Comprehensive Coverage & Under Insured Motorist Coverage.

For ‘Collision Coverage’ you need to pay high deductible to cover rest for your vehicle. If a person is not responsible for the accident, his insurance company should ask for the deductible the insured paid from the liable person.

If a victim’s vehicle is stolen or damaged in various ways in a collision, ‘Comprehensive Coverage’ gives the protection. This is also based on deductible.  It may seem similar to Collision Coverage. However, it is slightly different. If a person is injured by an uninsured driver or his uninsured vehicle this helps you to retain your protection.

‘Under Insured Motorist Insurance’ covers a victim only if he is not responsible for the accident and the thirsty party does not have adequate insurance coverage to compensate.

Now we will discuss about Self-insurance.  Carrying insurance is the wisest and easiest choice of the most people but some occupational drivers might also wish to meet the financial responsibility requirements via ‘Self-insurance’.

If you are one of them, please submit the following documents:

•             An application for self insurance must be filled up completely avoiding mistakes

•             Completed security agreement and master self-insurance

•             Current income statement and balance sheet

•             A security deposit is required. For one vehicle it is $50000 and each additional $10000

These documents must be submitted at Pennsylvania Department of Transportation.

There is no doubt, in case you have prior experience about purchasing car insurance in PA, and you are familiar with the basic types of available auto insurance. Unless you are a trained professional dealing with car insurance coverage, it is no likely that you would completely understand the plans or you might feel uncomfortable with some obscure insurance coverage offered to you that you’ve never heard of.  For your own safety, enter your ZIP code on our page and this will get you expert insurance advisers you can talk to before you end up purchasing a wrong insurance. After all, this is a free service. Why not take advantage of it?