Pennsylvania operates under a no-fault car insurance system. This means that in the event of an accident, drivers file claims with their own insurance company, regardless of who was at fault for the accident. Here’s what drivers in Pennsylvania need to know about this no-fault system:
What is No-Fault Insurance?
With a no-fault insurance system, accident victims recover from their own auto insurance company after an accident, no matter who caused the crash. This eliminates the need to establish fault through a court process when injuries or vehicle damage are minor. It also allows accident victims to receive compensation more quickly so they can pay for medical expenses and vehicle repairs without having to wait.
Pennsylvania’s no-fault system applies to injuries only – not vehicle damage. For injuries, the no-fault coverage limit is $5,000. This means your insurance will pay up to $5,000 of your medical expenses and lost wages, regardless of fault. If your damages exceed $5,000, you may file a third-party liability claim against the at-fault driver’s insurance.
For vehicle damage, you must identify and file a claim with the at-fault driver’s insurance company, as liability insurance will pay for those damages. Your own collision coverage would pay for your vehicle repairs if you carry that optional coverage, which allows you to get your car fixed faster.
Required No-Fault Coverage in Pennsylvania
All drivers in Pennsylvania must carry no-fault insurance that includes:
- $5,000 for medical benefits
- Up to $1,000 per month for up to one year for lost income
- Up to $5,000 for funeral expenses
- Up to $250 per week for up to one year for child care expenses
This mandatory minimum no-fault coverage applies if you are injured in an accident, no matter who caused it. You can purchase higher limits if desired. Drivers must also carry standard liability coverage in at least the minimum amounts required by law.
Benefits of a No-Fault System
There are some advantages to Pennsylvania’s no-fault car insurance system:
- Quicker payment of minor injury claims and reduced lawsuits – Victims recover directly from their insurer instead of having to establish fault.
- Potentially lower premiums – Legal costs are reduced since fewer accident claims go to court.
- Easier for accident victims – You just file a claim with your insurance company instead of having to negotiate with another insurer.
- Less time spent determining fault – Liability does not have to be completely established for minor injuries.
- Encourages drivers to carry adequate coverage – The required no-fault coverage ensures victims have some protection.
Drawbacks of No-Fault Insurance
However, some downsides to no-fault insurance also exist:
- Limited coverage for serious injuries – The $5,000 limit may not be enough to cover major injuries. Additional benefits can only be paid if another driver was at fault.
- Determining full fault still necessary – Fault must still be established for vehicle damage claims and major injury claims that exceed the $5,000 limit.
- Potential for higher premiums – Rates may increase due to the mandatory minimum coverage requirements.
- Possible disputes over medical costs – Insurers may dispute charges they consider excessive or unnecessary.
How No-Fault Claims Work
If you are injured in an accident in Pennsylvania, here is what happens:
- Seek any necessary medical treatment immediately.
- Report the accident to your insurance provider promptly. Provide details of the incident and your injuries. Cooperate fully with your insurer’s investigation.
- Your insurer will confirm coverage details and begin processing your no-fault claim. Submit any medical bills or lost wage documentation.
- Your insurer will calculate benefits up to the $5,000 limit and issue payment directly to you, or to medical providers if you assigned payments.
- If your damages exceed the no-fault limit, you may have to file a liability claim against the at-fault driver’s insurer to recover additional compensation if another driver caused the accident. Your own lawyer can assist with the claim process.
Contact Us Today if You Need Help
If you have been injured in an auto accident in Pennsylvania, contact the experienced legal team at Monge & Associates, for a free case review. Call (888) 477-0597 to learn more about your rights and options. Our attorneys will examine your claim details and advise you on the best path forward to recover the maximum compensation in your case. With offices in 32 locations across 19 states, including Pennsylvania, South Carolina, and Florida, we have helped thousands of injured accident victims across the country get the money they deserve. Contact us today to schedule your free case evaluation.