If you live in Pennsylvania and you drive a vehicle, you are well aware of the state laws that require you to carry insurance. But you may not know what coverage is best for your insurance needs. Most people tend to glance at their declarations page and pay their premium for their Pennsylvania auto insurance policy without thinking about what coverage they have. This is a mistake because you should review your policy at least once per year to make sure that you have enough coverage. If you have a newer vehicle, you should be buying full coverage and considering additional insurance such as bodily injury protection.
Let’s say you own a home and a vehicle. You should consider carrying high liability limits because you own a home and this is considered to be an asset. If you were found responsible for an accident that caused a death or serious injury, your home or other assets may be at risk. There are state minimum requirements for liability limits but these limits are very low. A state minimum liability limit might only be $50,000 dollars and this amount will hardly cover a long hospital stay. If you are found at fault for a serious accident and the claimant is not able to work, you may be responsible for paying the claimant’s lost wages and their medical bills. It is always best to consider asking for a Pennsylvania auto insurance quote that includes liability limits that are more than the state minimum limits.
Sometimes optional insurance coverage for a Pennsylvania auto insurance policy may include rental reimbursement and towing coverage. You may think that the daily reimbursement amount is low, but what you don’t know is that the rental car company will try to keep your daily rates under your reimbursement amount. When you are in an accident, a rental car agency will start processing the insurance claim according to your rental reimbursement limits. The daily limit may only be $20 dollars, but you should still be able to rent a vehicle without paying anything from your own pocket.
If you have comprehensive and collision coverage on a vehicle that is considered to be 10 years old, you may want to consider dropping the collision coverage. Unless your vehicle is an expensive Italian car, you should probably stop the collision coverage because the monthly premium is too high. For example, if your vehicle has a value of $2000 dollars, and your monthly premium for collision insurance is $75 dollars, you are paying an annual premium of $900 dollars just to carry collision coverage. Your deductible will be at least $500. If you totaled a ten year old vehicle, you would still be subject to paying a deductible on that vehicle. The deductible and the premium add up to $1400 dollars which is almost the value of the car. In this case, it would make sense to carry liability only for that vehicle on your Pennsylvania auto insurance policy.
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Tags: Coverage, Deciding Coverage
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