Key Takeaways
- Pennsylvania requires minimum auto liability limits of 15/30/5 ($15,000 per person/$30,000 per accident bodily injury/$5,000 property damage)
- Pennsylvania is a "choice no-fault" state—drivers can choose limited tort or full tort options
- First party benefits (medical, income loss, funeral) are required under Pennsylvania law
- Uninsured/underinsured motorist coverage is optional but must be offered
- The Pennsylvania Assigned Risk Plan provides coverage for drivers who cannot obtain insurance in the voluntary market
Pennsylvania Auto Insurance Requirements
Pennsylvania has specific auto insurance requirements that producers must understand, including the unique "choice no-fault" system.
Mandatory Coverage
Pennsylvania requires all registered vehicles to have the following coverage:
Minimum Liability Limits (15/30/5)
| Coverage | Minimum Limit |
|---|---|
| Bodily Injury per Person | $15,000 |
| Bodily Injury per Accident | $30,000 |
| Property Damage | $5,000 |
Memory Tip: Remember "15/30/5" for Pennsylvania minimum liability limits. These are the same as several other states.
First Party Benefits (Required)
Pennsylvania requires first party benefits (also called PIP-like coverage):
| Benefit | Minimum Amount |
|---|---|
| Medical Benefits | $5,000 |
| Income Loss Benefits | $5,000 |
| Accidental Death Benefit | $5,000 |
| Funeral Benefit | $2,500 |
Important: First party benefits are paid regardless of fault. They cover the insured and family members.
Pennsylvania Choice No-Fault System
Pennsylvania is one of only a few states with a choice no-fault system:
Tort Options
| Option | Description | Premium |
|---|---|---|
| Limited Tort | Can only sue for non-economic damages if injury is "serious" | Lower |
| Full Tort | Can sue for all damages regardless of injury severity | Higher |
Limited Tort Restrictions
With limited tort, you CANNOT recover non-economic damages (pain and suffering) unless:
- Death occurs
- Serious impairment of body function
- Permanent serious disfigurement
- Other driver convicted of DUI
- Other driver was operating uninsured
- At-fault driver intended to cause injury
- Injury occurred in another state
Full Tort Rights
With full tort, you retain the right to sue for ALL damages including pain and suffering, regardless of injury severity.
Exam Tip: Know the difference between limited tort and full tort. Limited tort provides lower premiums but restricts lawsuit rights unless injuries meet specific thresholds.
Optional Coverages
Pennsylvania requires insurers to offer certain optional coverages:
Uninsured Motorist (UM) Coverage
| Aspect | Requirement |
|---|---|
| Must Be Offered | Yes |
| Mandatory | No (can reject in writing) |
| Stacking | Must offer stacked and non-stacked options |
| Minimum Limits | Equal to liability limits if selected |
Underinsured Motorist (UIM) Coverage
| Aspect | Requirement |
|---|---|
| Must Be Offered | Yes |
| Mandatory | No (can reject in writing) |
| Stacking | Must offer stacked and non-stacked options |
| Minimum Limits | Equal to liability limits if selected |
Stacking Explained
Stacking allows policyholders to combine limits when multiple vehicles are insured:
| Option | Effect |
|---|---|
| Stacked | Limits multiplied by number of vehicles |
| Non-Stacked | Single limit regardless of vehicles |
| Example | 3 cars with $50,000 UM = $150,000 stacked |
Collision and Comprehensive
- Optional coverage for physical damage
- Subject to deductible
- Collision covers at-fault accidents
- Comprehensive covers non-collision events
Pennsylvania Assigned Risk Plan
The Pennsylvania Automobile Insurance Plan (Assigned Risk) provides coverage for drivers unable to obtain insurance:
Eligibility
- Driver unable to obtain coverage in voluntary market
- Must have valid license
- Must meet basic eligibility requirements
How It Works
- Apply through a licensed producer
- Assigned to an insurer by the Plan
- Pay assigned risk rates (typically higher)
- Coverage meets minimum requirements
Proof of Insurance
Pennsylvania requires proof of financial responsibility:
| Requirement | Details |
|---|---|
| Insurance Card | Must carry at all times |
| Electronic Proof | Accepted by law enforcement |
| Penalties | Fines and registration suspension |
| Verification | Random electronic verification system |
What are Pennsylvania's minimum auto liability insurance limits?
What is unique about Pennsylvania's auto insurance system?
What is the minimum medical benefit under Pennsylvania first party benefits?