Pennsylvania Auto Insurance

The state of Pennsylvania is a Tort state.  This means that if the state declares an individual as the cause of an accident, the named person will be required to pay all the damages which result from the accident they caused.  This will include all medical bills and vehicle repairs.  For this reason, insurance companies may encourage you to purchase more than the minimum auto liability insurance required by the state of Pennsylvania.  Insurance companies in Connecticut do not have to cover members of your household if they are not listed on the policy.  Individuals in Pennsylvania are allowed to choose tort option in regard to their right to compensation for injuries caused by another motorist.  The choices are full tort and limited tort.  The full tort does not have limits on compensation.

The state of Pennsylvania allows insurance companies to set exclusion on auto insurance policies.  These exclusions are legal. The person who is the policy holder may exclude members of their household as long as the individual being excluded can prove that they have their own policy or an assigned risk policy.  Keep in mind that anyone not covered by your policy is still your responsibility in the case of an accident.  Any exclusion to your policy will be listed in the section of the policy entitled Exclusions.  This section of your policy spells out all circumstances which the insurance company does not cover.

In the state of Pennsylvania, the insurance company is allowed to check out your personal credit history when offering you insurance and setting your premium rates.  Your credit score will also help the company set an insurance risk score which will be used to determine your premium rates.  They will also look at your driving record, age, and the area where you live as well as many other things when making their determination on your insurance.  Maintaining a good driving record and paying your bills on time may reduce your premiums.

The average insurance premium in Pennsylvania was about $832.00 as of 2006.  Pennsylvania was ranked as having the 18th highest premium average in the United States.  There are 20 state approved insurance companies doing business in the state of Pennsylvania.  The following companies may sell auto insurance in Pennsylvania:  Allstate Fire & Casualty Insurance Company, American Independent Insurance Company, Assigned Risk Plan – Clean, Assigned Risk Plan – Other Than Clean, Donegal Mutual Insurance Company, Erie Insurance Company, Erie Insurance Exchange, Farmers New Century Insurance Company, First Liberty Insurance Corporation, GEICO General Insurance Company, Harleysville Preferred Insurance Company, Liberty Mutual Fire Insurance Company, Nationwide Mutual Insurance Company, Pennsylvania National Mutual Casualty Insurance Company, Progressive Direct Insurance Company, Progressive Specialty Insurance Company, State Farm Fire & Casualty Company, State Farm Mutual Automobile Insurance Company, Travelers Home and Marine Insurance Company,  and Westfield Insurance Company. 

Things that can help you reduce the cost of your insurance premiums include a clean driving record, the type of vehicle you choose to drive as well as the number of miles you drive per year.  The fewer miles you put on your vehicle each year, the lower your chances are of being involved in an accident.  The reduction in accident risk can translate into a reduction in premiums. Furthermore, a clean driving record reduces your risk of an accident.  It will be more expensive to insure a luxury car or a sports car.  You should also keep in mind that insurance premiums will be higher on vehicles which are a high priority for thieves.  The cars that made the top 10 stolen list of vehicles in Pennsylvania are:

1. 1990 Honda Accord
2. 1991 Honda Civic
3. 1990 Toyota Camry
4. 1994 Dodge Caravan
5. 1994 Jeep Cherokee/Grand Cherokee
6. 1990 Oldsmobile Cutlass
7. 1992 Ford Taurus
8. 1994 Plymouth Voyager
9. 1990 Chevrolet Cavalier
10. 1993 Saturn SL

Safety devices such as anti-lock brakes side air bags, automatic seat belts and daytime running lights may also reduce your premiums along with anti theft devices like an alarm system and global positioning systems.  Parking your car in a garage or secured area is another way to reduce your premiums.  Where you live will affect your insurance rates which can be affected by weather extremes, high theft risk, and high traffic patterns.  Don’t forget to maintain a good credit record as the insurance company looks at this to determine how likely you are to pay your premiums on time.  Prior accident claims will also be a red flag to insurance companies especially if there are several claims on your past record.  The amount of your deductible is also a key factor when determining insurance rates.  The higher your deductible is, the lower your insurance rates will be.