Pennsylvania Car Insurance Laws: Minimum Coverage, Penalties and SR-22

Pennsylvania requires 15/30/5 liability: $15,000 for injury or death of one person, $30,000 for injury or death of more than one person in an accident, and $5,000 for damage to another person's property. Some insurers offer a $35,000 combined single limit that meets both liability minimums. Policies must also include medical benefits (first-party benefits) with a minimum of $5,000. A certificate of self-insurance issued by PennDOT is also accepted as proof of financial responsibility.

Pennsylvania uses a choice system. Required medical benefits pay medical bills for you and others covered by your policy regardless of fault. You choose between full tort and limited tort: limited tort gives significant premium savings, but you cannot recover certain damages, such as pain and suffering, unless the injury meets one of the exceptions in the law; full tort keeps unrestricted rights to sue. If you do not specifically elect limited tort, you are deemed to have chosen full tort.

Optional. The Insurance Department lists uninsured motorist (UM) and underinsured motorist (UIM) coverage as optional coverages; they cover bodily injury (not property damage) to you, household relatives and passengers. Stacked UM/UIM coverage (combining limits from more than one vehicle or policy) applies unless you reject it, and rejecting stacking lowers premiums.

Keep your insurance ID card in your car at all times; police request it at traffic stops and reportable crashes, and inspection stations require proof of insurance before an inspection. Acceptable proof includes an insurance ID card, a full declarations page, a valid binder, a signed Assigned Risk Plan application, a PennDOT self-insurance certificate, or an insurer letter on company letterhead. Insurers must report policy cancellations and terminations to PennDOT, which sends owners a letter asking for new insurance information, and PennDOT may verify insurance listed on registration applications with the insurer.

Driving uninsured can bring a minimum $300 fine, a three-month suspension of the vehicle registration, a three-month suspension of the driver's license, and restoration fees for the registration and license. A lapse in coverage alone leads to a three-month registration suspension unless the lapse was less than 31 days and the owner proves the vehicle was not driven. Instead of serving the registration suspension, an owner may pay a $500 civil penalty plus the restoration fee, no more than once in 12 months. A suspension can also be avoided by returning the plate and registration card to PennDOT within 30 days after the insurance was canceled.

Pennsylvania law allows insurers to cancel or nonrenew auto policies only for certain reasons. A policyholder who disagrees with a cancellation or nonrenewal can submit a statement to the Insurance Department; to preserve appeal rights, it must be received within 30 days of the company's mailing of the notice. The Department handles complaints if an insurer cancels a policy in error or fails to send proper cancellation notice.

Insurers are prohibited by law from charging different rates based on an applicant's race, religion, national origin or gender. Some insurers use credit history to set premiums, but they cannot use it to increase your rate at renewal.

The Insurance Department describes a vehicle as a total loss when the cost to return it to its pre-damage condition is more than the vehicle's value, or when it is damaged too severely to repair. Different methods can be used to calculate replacement value.

Title transfers are processed through PennDOT authorized agents (such as notaries, dealers and messenger services). For a used vehicle with a Pennsylvania title, the title is used with Form MV-4ST (Vehicle Sales and Use Tax Return/Application for Registration); out-of-state titles use Form MV-1. Bring a Pennsylvania driver's license or photo ID and, if registering, your insurance ID card; gifts need Form MV-13ST. When an owner dies, a surviving joint owner with right of survivorship uses Form MV-39 (no title fee between spouses); otherwise the executor or administrator assigns the title with a Short Form Certificate, or, if the will is not probated, a surviving spouse, child or parent named in the will can transfer with the will, Form MV-39 and Form MV-4ST.

New residents must apply for Pennsylvania title and registration within 20 days of establishing residency and have 60 days to get a Pennsylvania driver's license. A valid Pennsylvania ID is needed to title and register, and the out-of-state title must be surrendered.

File a complaint or ask a question through the Pennsylvania Insurance Department's Consumer Services Online (CSO) Portal; phone 1-877-881-6388.