Anyone who owns a motor vehicle in Pennsylvania is required to maintain insurance on that vehicle. This introduces you to an entire set of terms, most of which you’ve likely had little to no experience with. The purpose of this blog post is to give you some help in understanding those terms.
The motor vehicle statute has a large number of words and phrases that are capable of causing confusion. Here are, in my opinion, some of the more important ones to understand:
- Required Benefits
All motor vehicle policies must provide a medical benefit of at least $5,000.00. You may purchase more medical coverage if you like, but you also should understand how your own health insurance coverage may already cover medical bills in excess of that amount. One of the main differences between this health coverage benefit is there are no deductibles or co-pays as are found in many health insurance policies.
- Minimum Policy
This is what is known as Liability Coverage. In Pennsylvania, we must all carry a policy with liability coverage in the minimum amount of $15,000.00 because of injury to one person in any one accident, and in the amount of $30,000.00 because of injury to two or more persons in any one accident. You consult with your insurance professional to discuss whether you need to consider coverages in additional amounts based upon your economic circumstances. You are also required to carry a minimum amount of coverage for damage to the property of others in the amount of $5,000.00
- Availability of Benefits
In addition to the required medical benefit described above each insurer must also make available other benefits, though you are not required to purchase those. They are as follows:
- Income Loss Benefits
This covers lost income. Before purchasing this or any other optional benefit, you should understand what coverages you already have. For instance, some employers provide some form of this benefit. - Death Benefit
This option operates pretty much the same as a life insurance policy. - Funeral Benefit
This optional benefit pays the expenses directly related to the funeral and burial/cremation incurred as a result of death. - Extraordinary Medical Benefits
This is additional coverage for medical bills which exceed $100,000.00.
This is just a start, but hopefully it answers some questions you may have about motor vehicle insurance lingo. If you have more questions, please contact our office. We’d be glad to help you.
Michael Kracht became a lawyer quite simply to help people and make a meaningful difference in their lives. It is that desire to help and go way beyond the typical “call of duty” that motivates him to be an outstanding advocate and counselor to his clients. Michael’s practice at Weber Kracht and Chellew focuses on real estate, land development, municipal law and litigation matters. Despite his busy practice, to this day, Michael is active in doing pro bono work for the community including handling protection from abuse matters.
This blog is designed for general information only. The information presented should not be construed to be formal legal advice nor the formation of a lawyer/client relationship.
