GENERAL CAR INSURANCE LAW INFORMATION

Collision coverage – If your vehicle is damaged following a car accident, this type of insurance pays you back over a certain amount, which is typically called a deductible. As an example, if there is $5,000 worth of damage to your car and your deductible is $500 and there is $4,500 worth of damage your collision coverage will pay. If your car accident is not your fault, your insurance company may demand your deductible from the other responsible party. If the damage to your vehicle cost more to fix than your car is worth, your collision coverage will only pay you the value of your car. This is referred to as a totaled vehicle.

Comprehensive coverage – similar to collision coverage, comprehensive coverage pays you back for damage done to your vehicle. This type of coverage only applies to damage that was not following a collision with another vehicle. Foe example, if you slipped on ice and crashed into a telephone pole. Comprehensive coverage also applies if your vehicle is stolen.

Liability coverage – this insurance covers you when an accident is clearly your fault. For such cases where you have caused injury to another person or damage to another parties vehicle. Your liability insurance pays the other party for their damages. When your insurance company pays a third party using your liability coverage to settle a claim, the insurance company is entitled to raise your monthly premium, so it will become more expensive for you. However, there are many rules and regulations to how far an insurance company can raise rates.

Personal Injury coverage – Also known as (“PIP”) covers you when you are injured in an accident. Your own personal injury insurance pays for your medical bills up to a certain limit, regardless of whose fault an accident was.

Uninsured and Underinsured Insurance coverage – Also known as (“UM”) & (UIM) coverage protects you in the event you are involved in a collision with a driver who no insurance or does not have enough insurance to compensate you for your injuries and damages. This is often very important as there are still a number of uninsured and underinsured drivers on the road getting into accidents. It is always recommended to not drop this insurance to save money as it can cost you more in the future if an accident with an uninsured driver is to occur.

However, with each state – the rules are different regarding what type of insurance is necessary in order to drive a motor vehicle. In some cases, insurance is not explicitly required. Some states even have a minimum amount of coverage that must be purchased in order to drive a car. In others, local governments may impose criminal and civil sanctions for driving without the required amount of insurance.

Regarding drivers in Pennsylvania: It is required to purchase and maintain car insurance. Liability insurance coverage is mandatory in PA. Also you must have at least $5,000 worth of Personal Injury coverage. Collision, comprehensive, uninsured and underinsured coverage are all optional.

When you need a Bucks County, Pennsylvania, Montgomery County, or Northeast Philadelphia personal injury lawyer to represent you, a family member, or a loved one who has suffered an injury, call us right away.

To receive a free consultation, please call our offices to schedule an appointment for your personal injury case at 215-593-2623 or contact us online.