In Pennsylvania, all drivers are required to purchase and maintain auto insurance; however, drivers are granted choice when it comes to the type of coverage they purchase.
Liability coverage is mandatory and covers claims made against you. If you cause an accident that results in damage or injury to others, liability coverage provides compensation. The minimum amount of liability coverage allowed in Pennsylvania is $15,000 per individual or $30,000 per incident.
First Party PIP Coverage
First party benefits – or personal injury protection – is mandatory coverage which covers your own medical bills. The minimum amount of PIP coverage allowed in Pennsylvania is $5,000. Regardless of whether or not the accident is your fault, your medical bills will be paid through your PIP coverage.
Collision coverage is optional and pays you for any damage done to your vehicle. Collision coverage is often accompanied by a deductible; you pay up to your deductible limit and your collision coverage covers the remainder. If the accident is not your fault, your deductible will most likely be covered by the responsible driver.
Comprehensive coverage is optional and pays you in the event your car is stolen or damaged outside of an accident. Comprehensive coverage is also accompanied by a deductible.
Uninsured Motorist Coverage
Uninsured motorist coverage – or UM – is optional. UM protects you if you are injured by a driver or vehicle that is uninsured.
Under-Insured Motorist Coverage
Under-insured motorist coverage – or UIM – is optional and very similar to UM coverage, but with certain limitations. UIM only applies if you are injured, the accident was not your fault, and the other driver doesn’t carry enough insurance to adequately compensate you for your injuries.