Limited and Full Tort

• Pennsylvania insurance law combines some aspects of a traditional tort liability system in which the driver who is at fault for an accident is liable for damages and a no-fault insurance system. Vehicles owners may select either limited-tort or full-tort coverage when purchasing insurance. An owner who chooses full-tort coverage retains all rights to file a lawsuit seeking damages from an at-fault driver.
  Limited-tort coverage permits a vehicle owner to seek recovery of unpaid medical expenses and out-of-pocket expenses. However, limited-tort coverage does not permit recovery of other types of damages, such as pain and suffering, unless injuries come within an exception to limited tort, as defined in Pennsylvania law. Limited-tort coverage does provide for some savings on insurance premiums.
  
  

Coverage Requirements

• Pennsylvania law requires automobile owners to demonstrate financial responsibility by maintaining automobile insurance on their vehicles. All Pennsylvania automobile insurance policies must provide medical benefits coverage, which pays medical expenses resulting from an accident without regard to who is at fault for the accident. The minimum coverage amount is $5,000.
  State law also makes liability insurance coverage mandatory. The minimum amounts for bodily injury liability coverage are $15,000 per person for injury up to $30,000 for all bodily injury in an accident. The minimum amount of coverage for property damage is $5,000.
  
  

Enforcement

• If a vehicle owner lets his insurance coverage lapse, the state may suspend the vehicle registration for 3 months. The owner can avoid the suspension if he can demonstrate that he did not drive the vehicle during a short lapse in coverage (less than 31 days). If the Pennsylvania Department of Transportation determines an owner did operate a vehicle without insurance, the department may suspend the owner's driver's license for 3 months.
  If an owner who is stopped for a moving violation is found to be operating the vehicle without insurance, the penalties include impoundment of the vehicle, suspension of the vehicle registration and the driver's license for 3 months, a minimum $300 fine and fees for reinstating the registration and driver's license.
  
  

Assigned Risk Plan

• Pennsylvania has developed an assigned risk plan to make vehicle insurance available to individuals who are not otherwise able to obtain insurance coverage. State law requires all insurance companies who sell automobile insurance in Pennsylvania to participate in the plan. Individuals who apply for insurance through the assigned risk plan are assigned to insurers according to the amount of insurance the insurance company sells in Pennsylvania.
  
  

Mature Drivers

• Pennsylvania law provides an incentive for drivers age 55 years and older to maintain their driving skills by taking periodic driver improvement courses. State law requires insurance companies to offer such drivers a discount of at least 5 percent on the premium for an automobile insurance policy. Mature drivers must take a driving course that meets the standards established by the Pennsylvania Department of Transportation in order to receive the discount. Drivers may no longer qualify for the discount if they are convicted of a moving violation or of driving under the influence of alcohol or a controlled substance, or if they are involved in a chargeable accident (an accident that an insurance provider determines may have been avoidable).