How Are Pennsylvania Car Insurance Rates Calculated?

Answer 1

It doesn't matter what state a person drives in, that person is required to have car insurance to cover that vehicle. This is no different in the state of Pennsylvania. Unfortunately, like in most states, Pennsylvania car insurance rates can be expensive.

Many people may wonder how these rates are chosen. To help, below is a brief over view of Pennsylvania car insurance and how the rates for those policies are determined.

First of all, the rates of Pennsylvania car insurance policies are in part determined by the amount of minimum coverage in those policies demanded by Pennsylvania law. A car insurance policy in this state must include $15,000 of coverage for a person physically harmed in an accident. The minimum coverage for more than one person hurt in an accident is $30,000. Lastly, there must also be $5,000 of coverage for damage done to property.

Lastly, Pennsylvania car insurance rates are in part shaped by the kind of car insurance system Pennsylvania uses. Pennsylvania uses a system that allows its citizens to choose between "full tort" coverage and "limited tort" coverage for their vehicles.

A full tort insurance plan allows a person harmed in an accident seek full liability from the driver At Fault. A limited tort plan also allows this. However, the coverage is limited to things like bodily injury and certain other expenses that are physical in nature. It does not allow for the recovering of damages related to things like pain and suffering. These are, however, allowed under a full-tort plan. For this reason, the insurance rates for a full tort plan tend to be much higher.

There are also other things that can determine a person's car insurance rate. One of the largest factors is a person's credit history. Pennsylvania, like a number of other states, allows auto insurers to use credit history as one of the criteria used to craft the terms of a person's car insurance policy.

If a person's credit history is poor, it is likely that person will pay higher premiums. However, if a person's credit is good, those rates will be much lower. How often a person has to pay premiums can also be determined by credit history. Other factors may also determine the rates a person pays as well. These can include things like the model of the car, the age of the driver and that driver's marital status.