Pennsylvania Minimum Car Insurance: Requirements and Limits

What is the minimum car insurance required in Pennsylvania?

Pennsylvania calls this 'financial responsibility'. PennDOT requires liability insurance on every currently registered car, van, truck, motorcycle, RV and bus. The Pennsylvania Insurance Department lists three required coverages and their minimum limits:

You will hear this written as 15/30/5. Some companies sell a $35,000 combined single limit that meets both the bodily injury and property damage minimums in one number. Higher limits are available for every coverage.

These are the legal minimums, not a recommendation. They are the least the state accepts, and a serious accident can cost much more than these limits.

What does minimum coverage cover, and what does it not cover?

Liability coverage pays other people: their injuries and their property, up to your limits, when you are at fault. The $5,000 medical benefits pay medical bills for you and others on your policy, whoever caused the crash.

What the required coverages do not do:

• They do not repair your own car. That is collision coverage, which is optional unless a lender requires it. The Insurance Department notes that Pennsylvania law applies a $500 collision deductible unless you ask for a lower one.
• They do not cover theft, fire, flood, vandalism or hitting an animal. That is comprehensive coverage, also optional.
• They do not pay anything above your limits for the people you hurt.
• They do not cover injuries to you caused by an uninsured or underinsured driver beyond what your medical benefits pay. That is what UM and UIM are for (see below).

If you have a car loan or lease, the lender typically requires both collision and comprehensive. If your car is worth very little, the Insurance Department's guide says dropping those two on cars worth under $1,000 may not be cost-effective.

Full tort vs limited tort: what is the difference in plain words?

'Tort' just means your right to sue someone who injured you. In Pennsylvania you pick one of two options on your own policy:

• Full tort: you keep unrestricted rights to sue the at-fault driver, including for pain and suffering.
• Limited tort: your premium is lower, but you generally cannot recover certain damages, such as pain and suffering, unless your injuries meet an exception in the law. You can still recover out-of-pocket medical and certain other expenses.

The trade-off: limited tort saves money now but gives up rights if you are hurt later. Full tort costs more but keeps all of your options. If you do not specifically choose limited tort, you are treated as having chosen full tort.

Which one is right depends on your health, your budget and your risk comfort. Ask the insurer to show the quote both ways and tell you which injuries count as an exception under limited tort. We cannot give legal advice.

Is uninsured or underinsured motorist coverage required in Pennsylvania?

No. The Insurance Department lists Uninsured Motorist (UM) and Underinsured Motorist (UIM) as optional coverages. They protect you, relatives who live with you and your passengers when you are injured by an at-fault driver who has no insurance, too little insurance, or who drives away (hit and run). They do not pay for property damage.

Ask about stacking. The Insurance Department explains that UM/UIM limits can be multiplied by the number of vehicles on the policy, or combined across policies. Stacked coverage applies by law unless you reject it, and rejecting it lowers the premium. Confirm how this works on your policy before you sign.

How do I choose limits higher than the minimum?

There is no single right answer, but these questions, taken from the Insurance Department's shopping guide, are a good start:

1. Are these limits high enough if I have an accident and am at fault?
2. Do I need collision and comprehensive on this car?
3. What discounts are available?
4. How much can I save with a higher deductible? (You pay the deductible yourself when you file a claim.)

Always compare quotes with identical coverages and limits, otherwise the cheapest number may simply be less protection. Check whether the term is six or twelve months, and ask about payment plan fees. Read the exclusions in the policy, because policies differ.

What is proof of insurance, and what does PennDOT do with my insurance data?

Your insurer issues an ID card (valid only for the period you paid). You must show proof of insurance when you first register a car, and PennDOT will not renew a registration without the insurer's name, policy number and effective and expiration dates. Police ask for the card at traffic stops and crashes, and inspection stations ask for proof too. Acceptable proof includes the ID card, the declarations page, a valid binder, a Pennsylvania Assigned Risk Plan application signed by a licensed agent, or a signed letter from the insurer.

Important: when a policy is cancelled, the insurer reports it to PennDOT, but a new insurer does not report a new policy. If you switch companies, PennDOT may mail you a proof letter, and ignoring it can lead to a suspension. A lapse can lead to a three-month registration suspension, see our guide to a registration suspended for an insurance lapse. If you are registering a car for the first time, see registering a car in Pennsylvania with an ID and temporary tags.

How can a new driver or someone without U.S. credit history shop for insurance?

Every insurer sets its own rules, so ask before you pay. Have this information ready, as the Insurance Department suggests: names, ages and marital status of all drivers, driving record including accidents and violations, estimated yearly mileage, the full VIN, and the year and cost of the vehicle.

If you are new to the U.S., also ask each company which ID or license it accepts, whether driving experience from another country is considered, and whether credit information is used for your quote. The answers can differ from company to company, so compare before you choose. If you truly cannot get coverage, the Insurance Department says the Pennsylvania Assigned Risk Plan exists for drivers who cannot obtain it on their own, and every auto insurer in the state must take part.

Why compare insurance through an agency?

The Insurance Department advises getting quotes from at least three companies with the same coverages and limits. An agency that works with several insurers can do that comparison in one conversation instead of three phone calls. United Business Center is P&C (property and casualty) licensed in Pennsylvania and New Jersey and works with several insurance companies for auto, motorcycle, truck, home and business insurance, including SR-22 and new drivers. We speak English, Portuguese and Spanish. Each company decides its own rates after reviewing your information, so we compare real quotes instead of promising a price.

Frequently asked questions

What is the minimum car insurance in Pennsylvania?

$15,000 bodily injury liability per person, $30,000 per accident, $5,000 property damage liability, and $5,000 in first-party medical benefits, according to the Pennsylvania Insurance Department.

Is full coverage required in Pennsylvania?

No. Collision and comprehensive are optional by law, but a lender usually requires them if the car is financed or leased.

What is the difference between full tort and limited tort?

Full tort keeps your unrestricted right to sue an at-fault driver. Limited tort costs less but generally restricts recovering things like pain and suffering unless your injuries meet an exception. If you do not choose limited tort, you are treated as having full tort.

Is uninsured motorist coverage required in PA?

No, uninsured (UM) and underinsured (UIM) motorist coverage are optional. They cover you, resident relatives and passengers injured by an at-fault driver with no or too little insurance, or a hit-and-run driver.

What happens if I drive without insurance in Pennsylvania?

PennDOT lists a fine of at least $300, a three-month registration suspension and a three-month driver's license suspension, plus restoration fees.

Can I get car insurance in Pennsylvania if I have no credit history?

It depends on the insurer. Ask each company what it needs and whether credit is used. If you cannot get coverage on your own, the Pennsylvania Assigned Risk Plan is an option.