| Why do I need Auto Insurance? | | In Pennsylvania, a vehicle must be covered by liability insurance at all times. In order to register (license plate or tag) it, or renew the registration (obtain your sticker), you will be required to show that your vehicle is currently insured with at least Liability coverage. Pennsylvania has a mandatory minimum coverage of $15,000/$30,000/$5,000 for personal auto liability insurance. Please see the question “What are the different types of Auto Insurance?” for more details. |
What are the penalties for driving uninsured? | | Continuous insurance coverage must be maintained on all vehicles. If it is not maintained, the vehicle owner could be fined and also could: - Lose his or her license plates and vehicle registration privileges
- Have to pay a restoration fee of up to $25 for the vehicle registration privilege
- Be kept from registering any future vehicles until the insurance violation is cleared
- Be kept from renewing the suspended registration until the insurance violation is cleared
- Have his or her license plates taken by an authorized tag recovery agent, as soon as registration suspension is in effect
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What are the different types of Auto Insurance? | | Liability - Required If you cause an accident due to the negligent operation of your vehicle, it pays for bodily injury to other people or damages to their property. It may also pay if an accident was caused by a member of your family living with you, or a person using your car with your permission. Currently, Pennsylvania State Laws requires minimum limits of $15,000 per person, $30,000 per accident for bodily injury and $5,000 per accident for property damage. Increased limits can be available for an additional cost. Uninsured and Underinsured Motorist - This can protect you if you are injured in an accident by others who do not carry enough insurance or have no insurance. Provides recovery for bodily injury and property damage caused by the operator of an uninsured automobile, including a hit-and-run driver (after any applicable deductible. Physical Damage / Collision - Optional It may be required if you have a loan or a lease for your car. Pays for damages to your own vehicle by accidental collision. Physical Damage / Comprehensive - Optional It may be required if you have a loan or a lease for your car. Pays to repair damages to your car caused by fire, theft, vandalism, natural disaster or similar events. Roadside Assistance - Optional This coverage can include things such as towing, emergency travel services, locksmith, and map service. | | | | |
What determines my auto insurance premiums? | | Your Driving Record The rates used in determining your premium are affected by your history of claims and traffic violations for up to three years. Drivers with more accident/ticket records will have higher premiums. Your Age, Sex and Marital Status Statistics show that the frequency of accidents is higher for males than females. Teenagers have more accidents than adults and single people have more accidents than married people. High accident frequencies mean higher premiums. Your Residential Location Congested areas such as cities have heavier traffic and more thefts and vandalism. Consequently, these areas pay higher premiums than rural areas. Type of Vehicle and Vehicle Use Some vehicles cost more to repair than others and therefore cost more to insure. Higher premiums are also the result of vehicle usage, such as business use and vehicle performance, such as turbo or other high performance engines. |
What factors affect auto insurance premiums for all of us? | | There are also factors that drive up the cost of claims, and thus raise auto insurance premiums for everyone. Lawsuits One of biggest factors affecting premium is Liability Claim Lawsuits. According to the Insurance Information Institute, claims for bodily injury liability from 1985 -1988 rose more than 13 percent a year. Fourteen of the 15 states with the highest auto insurance premiums were also among the 15 states with the highest bodily injury paid claim costs. The number of suits being filed is increasing. Since 1981, auto lawsuit filings in California have increased by more than 50 percent. Because insurers are obligated to pay defense costs even in minor or frivolous lawsuits, increases in filing lawsuits mean increases in their cost of doing business. Medical Costs Rising medical costs are contributing to the increases in bodily injury liability claim costs. In general, medical costs have been rising at a 6% rate. On the other hand, advances in medical technology and improved rescue and life saving techniques result in fewer deaths, but this also drives up the cost of medical care. Car Repair Costs It costs more to fix cars nowadays, and that means higher claim costs. As cars have become more sophisticated through advancements like air bags, fuel injection, unibody construction and on-board computers, they also have become more expensive to repair in the event of an accident. Theft & Fraud Motor vehicle theft is the fastest growing crime in the nation. Fraud, a more sophisticated form of theft, is a major problem for insurers. According to the National Insurance Crime Bureau, fraud costs property and casualty insurance companies more than $20 billion a year, that's equal to 10 percent of all property and casualty claims paid industry wide. |
How can I lower my insurance premiums? | | Maintain a good driving record Higher premiums are often the result of accidents and tickets. Be a defensive driver, watch out for the other drivers and obey the speed limits. Cautious drivers can afford an extra minute or two, and can pay less in premium dollars. Explore higher deductibles Purchase the highest deductible you can afford, to reduce the physical damage premium. The more you are willing to pay shows that you are investing in your own safe driving. Consider the age and condition of your automobile Physical damage coverage on an older vehicle or one in not too good condition may cost more to insure than you will get if it’s in an accident. Shop for the best premium Each year you should shop for the best coverage at the best price. You should contact any licensed agent or broker in the state of Pennsylvania and compare one company’s quote with another to make certain that the terms, conditions, limits, deductibles, etc.are the same. Rates, discounts and coverage can change. |
What do I do right after I have an accident? | | Report all accidents to your insurance company as soon as possible. Get names and addresses of drivers, passengers, and witnesses, and get name and policy numbers of insurer of each vehicle involved. Timely notification of any claims or accidents is critically important. |
Why do I get letters from Department of Transportation regarding my Insurance canceling? | | When your auto insurance cancels, the insurance company is required to notify the Motor Vehicle Administration of the insurance termination date. If you are replacing insurance with another company, your previous company will contact the state due to your coverage ending with them. Your new insurance company will also contact the state regarding new coverage. Most times these contacts to the state cross where as, you will get a letter requesting information regarding your insurance. The Dept of Transportation is seeking proof that there was not a lapse in coverage. Most times your insurance agent can help you, or simply follow the letter and provide information requested. | | |
My vehicle is stolen. What do I do? | | Call the police and make a police report, call your insurance company and provide: Specific location from which vehicle was taken, when the theft was discovered, when the vehicle was last seen at the location and the police precinct and police report number. |
I recently bought a new car. When I applied for a loan, I was told I would have to buy collision and comprehensive coverage on my new car, as well as what is required by law. Why? | | It is not unusual for a lender to require full coverage on a new car. Your new car serves as the collateral for the lender, so it is in the best interest of the lender to have it fully financially protected. This is legal so long as the lender does not mandate which insurance company you must use. |
I just got a speeding ticket or had an accident. How will this affect my auto insurance? | | Most often, the ticket/accident will result in an increase of your insurance premium. However, with Broadway Insurance, you won’t be canceled. |
What happens if I am in an accident with someone who was driving illegally without Insurance and she or he is at fault? | | To protect yourself in the event you are involved in an accident with an uninsured illegal driver, be sure to keep your insurance coverage paid up to date. With uninsured motorist coverage, you will be paid for damages just as if the other driver were covered. |
Why are car insurance rates higher for young men than young women? | | Insurers use statistical evidence to determine which groups, such as young males, are more likely to have more accidents and file more claims. Under-25 drivers, particularly men, are much more likely to be involved in accidents. (15% of all licensed drivers are under 25, yet this group accounts for 29% of all accidents, and 26% of fatal accidents.) |
What happens when my child becomes licensed? | | Contact your agent or company to give them your child’s driver license number, date of birth and vehicle information. .Single drivers under the age of 25 are much more likely to get into an accident than any other drivers. Of course, this means that more losses are paid on young drivers, and so premiums must increase to pay for these losses. But how much your individual policy increases depends on many different factors: Occasional or Principal Operator? If your child will not be a primary driver of a vehicle (i.e. there are more drivers in the household than there are vehicles), the increase will not be nearly as large. Good Student / Driver Training status. Insurers give discounts for Honor Roll or Dean's List students, and also for passing an approved Driver Education course. How long the driver has been licensed. Most companies apply an "inexperience surcharge" for the first two years of licensure. After that period, the surcharge is removed, although they will still pay higher premiums than a driver over 25. Driving Record. As with any driver, the cleaner the record, the better the insurance rates. But, since young drivers pay higher rates to begin with, each "surcharge point" costs them even more than other drivers. |
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