In the state of Pennsylvania, you are required to have auto insurance. Why is that? What are the three things that it covers? And what do you need the most?
In Lancaster PA, if you have a licensed vehicle that you drive, you are required by law to carry auto insurance because as you are driving, there are some risks of hitting, damaging, or injuring someone or something. The Pennsylvania auto insurance state minimums in PA are $15,000 of individual liability, $30,000 of liability per occurrence, and $5,000 of property damage. These liability minimums have not been updated in a long time, given the cost to repair vehicles in today’s world of technology with backup cameras, sensors, and heated windshields. So, we recommend $100,000 of individual liability, $300,000 per occurrence, and $100,000 of property damage for your auto insurance policy.
These liability requirements ensure that you have coverage across the board if you were to be in an accident of some sort. For example, if you were to hit someone, your liability would cover their medical expenses. If you were to damage a building or somebody else’s vehicle, your property damage steps in and pays for that. If you were to hit somebody’s mailbox, your property damage would kick in. The list goes on and on for what the liabilities of an auto insurance policy cover.
Since the state only requires you to carry coverage that protects other people and their vehicles, you have some options on your auto insurance policy to protect yourself and your vehicle. When reviewing your auto insurance policy in Lancaster, here are three things to consider.
Comprehensive Coverage
Comprehensive coverage is for anything that happens to your vehicle that is generally not your fault. For example, if a tree falls on your vehicle, If your vehicle gets vandalized, If you hit a wild animal, such as a deer or a bear, these are all incidents that would trigger comprehensive coverage. For comprehensive deductibles, we recommend that you keep those lower because they cover things as small as a rock in your windshield. Windshield claims typically cost anywhere from $300-$500, so if you keep your comprehensive deductible lower, it will pay for most of the smaller comprehensive claims. If your comprehensive deductible is higher, say $1,000, you will save on your premium, but you will have to pay for all the smaller comprehensive claims out of your pocket.
Collision Coverage
Collision coverage for your vehicle is for any damage incurred because you hit something. For example, if you hit another car, a building, a tree, or a telephone pole, those will all be covered under collision coverage. Collision claims are generally more expensive and more common than comprehensive claims. For a collision deductible, we recommend anywhere from $500 to $1,000 to ensure your vehicle is covered while keeping your premium a little lower. This means that if you were to rear-end someone and cause damage to your vehicle, you would pay the $500, if that was your deductible, and the insurance company would take care of the rest of the cost to repair your vehicle.
First Party Benefits
These are the other components that make up an auto insurance policy that is not required by the state of Pennsylvania. The main coverage in this section is the Medical Expense coverage. This coverage pays the reasonable and necessary medical expenses you and your passengers incur due to injuries sustained in an accident, regardless of fault. Some other optional coverages you can add to your auto policy in Lancaster PA are Income loss, Accidental Death, Funeral Benefits, and Extraordinary medical benefits.
When it comes to shopping for an auto insurance policy in Lancaster you will want to know what exactly you are looking for. These 3 main elements of an auto insurance policy, should help you sort through the confusion.
Hopefully, this article helps you to better understand the different components that go into an auto insurance policy. Feel free to reach out if you have any questions about your auto insurance policy. We have agents here that are happy to answer any questions or concerns you might have about your auto insurance policy. Our agents would be happy to look at your current insurance policy, give you some recommendations, and even provide different quotes, if necessary. Susquehanna Insurance is an independent insurance agency which allows us to get quotes from all different types of companies and provide them to our customers, like you, to ensure that you have the most competitive and the best insurance policy possible for your vehicle(s).