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Top Five Auto Insurance Laws in Pennsylvania that Must Be Observed

In Pennsylvania, every car owner must have a car insurance policy. The Pennsylvania Department of Transportation (Penn DOT) has laid down a set of rules regarding the auto insurance coverage in Pennsylvania. This law is the 6th Amendment to the PA Motor Vehicle Financial Responsibility law or simply the MVFRL. The general provisions of auto insurance laws in Pennsylvania are discussed below.

Pennsylvania is a state of financial responsibility. The owners of the car must have a liability cover for USD 15, 000 or USD 30, 000. The coverage of damages to the property must be for USD 5000. It is mandatory for the car insurance company in Pennsylvania to include medical benefit in the amount of USD 5, 000.

PennsylvaniaAutoInsuranceThere are two systems of coverage and the drivers may choose between the two, viz., the pure no-fault plan, and the choice-no-fault. If a driver is covered under the pure no-fault plan, in case of an event or a mishap, he cannot be sued for the non-economic damages even if he was found to be negligent. If the driver covered under choice-no-fault plan has an accident with another person covered under pure no-fault plan, then both drivers cannot sue each other for damages. However, if both drivers are covered under choice-no-fault plan, then both may sue each other for the non-economic damages.

In June 2009, the PA fair share act came into existence. All the cases of claims relating to accidents that occurred on 20th August, 2002 or later are governed by this act. This law states that if any defendant is found liable for less than 60% of the damages, he will have to pay only its percentage share.

Insurance companies in Pennsylvania have certain rights in case of misrepresentation of material facts by the insured. Pennsylvania law allows the insurance companies to investigate the background of the insured. For this purpose, the insurance companies are given a period of 60 days from the date the policy takes effect, which is also known as look-back period. If misrepresentation of material facts by the insured is proved true within the span of 60 days, then the insurance company has a right to rescind the auto insurance policy, but if it is proved after the expiry of the look back period, the insurance company has an only option of cancellation.

There is a Statute of limitations of two years for property damage and liability claim. The limited tort plaintiff cannot claim for damages unless he/she is seriously injured in the accident. Statute of Limitations on the uninsured driver benefits starts in case the insured is involved in the accident; he has been injured in the accident and is aware of the uninsured status of the person committing the tort. Statute of Limitations on underinsured driver benefits comes into effect when the insured is involved in the accident; he has been injured in the accident and there is a third party settlement for the limits of the policy or the damages exceed the limits.