Explanation of Basic Auto Insurance Terms
The Pennsylvania Motor Vehicle Financial Responsibility Law (PMVFRL) – An amendment was made to the PMVFRL on July 1, 1990 by Act 6 to attempt to reduce the high rates for car insurance and lower those driving with no auto insurance coverage. The act states that an owner of a vehicle is required to show “financial responsibility” at the time of registration”.
Financial Responsibility – the ability to respond to liability on account of accidents arising out of the maintenance or use of a motor vehicle. This basically means that you are liable, or responsible, for damage or injury to another person or their property in the event of an accident.
Pennsylvania Minimum Limits of Liability – the minimum limits of liability in Pennsylvania are: $15,000 for bodily injury to an individual in any one accident; $30,000 for bodily injury to two or more people in an accident; and $5,000 damage to property owned by another individual in an accident.
Bodily Injury Liability – pays others when you are responsible for causing injuries and includes medical and rehabilitation expenses, and noneconomic damages such as pain and suffering.
Property Damage Liability – pays others when you are responsible for damage to their property.
Limited Tort – limits your right to sue to “specific out-of-pocket” expenses. The exception is cases involving serious injury or death, in which you can sue for pain and suffering.
Full Tort – DOES NOT limit your right to sue. This means that you could potentially collect both specific damages and also noneconomic damages. “Specific damages” are damages such as medical expenses and loss of income, while “noneconomic damages” are ones such as pain and suffering.
First Party Benefits – are benefits that are payable to you. The following is a list of First Party Benefits:
- Medical Benefits: reasonable and necessary medical and rehabilitative services and are paid regardless of fault.
- Extraordinary Medical Benefits: medical and rehabilitation expenses in excess of $100,000; and is an optional coverage that can be purchased in $100,000 increments up to $1,100,000. Payments are limited to $50,000 per year during the first 18 months following an accident.
- Income Loss Benefits – pays loss of income to you if you are injured in an auto accident. This is an optional coverage and is limited to 80% of loss of gross income up to $2,500 per month and up to a maximum of $50,000. A 5 day waiting period applies to this benefit.
- Funeral Benefit: pays the funeral, burial, or cremation expenses if you die in a car crash within 24 months from the date of the accident (an example would be if you are hospitalized as a result of the crash and you die while hospitalized less than 24 months after the date of the crash).
- Accidental Death Benefit: basically the same as funeral benefit, except that if accidental death were to pay, the highest amount possible is $25,000 instead of $2,500 with the funeral benefit.
Uninsured Motorist (UM) insurance – this pays for bodily injuries caused by an uninsured motorist, or someone who does not have auto insurance. It is optional coverage that is required by law to be signed as either accepted or rejected coverage.
Underinsured Motorist (UIM) insurance – this pays for bodily injuries caused by a motorist whose insurance policy carries bodily injury limits that are too low. This, like UM, is an optional coverage and must be rejected if not desired.
Stacking – means that in the same type of accident, coverage limits would be the sum of the uninsured or underinsured motorist coverage limits for all of the autos insured under the policy. An example would be someone who insures two vehicles on a policy with UM and UIM of $100,000 for each car, then each auto would be insured to up to $200,000 in the event that UM or UIM must be used.
Comprehensive coverage – comprehensive, also known as “comp” or “other-than-collision”, means any type of loss that is not collision. Some examples include falling objects, fire, theft, and hail.
Collision Coverage – collision can basically be defined as colliding into another object with your car such as a structure, another automobile, etc.
Transportation Expense – this provides temporary transportation expense of up to $50 per day up to a maximum of $1,500 total in the event your car gets stolen or it is damaged and it is insured for collision and/or other than collision.
Loan/Lease Payoff Coverage – this pays the difference between what you owe on the vehicle and what the insurance pays if your car is determined to be a total loss (or commonly considered “totaled”) or is stolen and not recovered, after the comprehensive or collision deductible is applied. You need both comp and collision on your policy before Loan/Lease Payoff Coverage can be added.
Repair Replacement Collision Coverage – applies to vehicles under a certain number of years old, usually 5, from the year of the current policy. In the event of a collision of an auto carrying this coverage, the company will pay for either reasonable repair costs with part that are of like kind and quality, or the cost of a new car; whichever one is less expensive. Like most other coverage options, there is a deductible for this coverage (usually $500).
36 Consejos Para Obtener Seguros de Automóviles Baratos en Allentown, Pensilvania
Muchas personas no son conscientes de la gran cantidad de ahorros y descuentos disponibles en el momento de la compra de seguro de automóvil en Pensilvania. Presentamos 36 fáciles consejos que pueden ahorrarle cientos de su primer de seguro.
1. Asegúrese de saber en qué medida usted maneja por año. Algunas compañías ofrecen descuentos si usted viaja por debajo de un determinado número de millas al año.
2. Un buen puntaje de crédito a menudo da un descuento. Sin embargo, muchas empresas la tasa de crédito resultados diferentes maneras.
3. Muchas empresas ofrecen un descuento para mantener activa la cobertura de seguro antes de cambiar a otra compañía.
4. Algunas compañías de seguros dan un descuento para el transporte antes de lesiones corporales (BI) Límites de 100/300 o más.
5. Muchas empresas ofrecen un descuento por sólo ser propietario de una casa. Con algunas empresas, puede obtener este crédito para ser propietario de una casa, incluso si no está escrito con la misma compañía como su seguro de automóvil.
6. Las compañías de seguros también pueden ofrecer un descuento si usted pone su casa de seguros de automóviles y pólizas de seguros, junto con una compañía de seguros. Esto es lo que se llama la “multi-política de descuento”.
7. Algunas compañías de seguros pueden ofrecer un descuento por poseer una casa y combinarla con la política de su automóvil.
8. Las compañías de seguros ofrecen a menudo lo que se llama un “multi-coche de descuento” en la polisa de un automóvil. Este descuento se puede dar si asegurar 2 o más coches en la misma polisa.
9. Algunas compañías de seguros ofrecen un descuento por combinación de una casa móvil y el automóvil juntos en la misma polisa.
10. Muchas compañías ofrecen una avanzo citando descuento si usted recibe una cotización de seguros de 8 o más días antes de la fecha de renovación de su póliza de seguro.
11. Algunas compañías de seguros dan un descuento para asegurar tanto un automóvil y una motocicleta con la misma compañía de seguros.
12. Algunas compañías de seguros ofrecen un descuento si usted asegurar un barco y un automóvil con la misma compañía de seguros.
13. Varias compañías de seguros ofrecen un descuento para estudiantes conductores con grados por encima de un determinado medio, dependiendo de la empresa.
14. Algunas compañías de seguros ofrecen un descuento si usted es un maestro.
15. Algunas compañías de seguros ofrecen un descuento para los bomberos..
16. Algunas compañías de seguros ofrecen un descuento por ser un policía.
17. Es posible que pueda obtener un descuento si usted pone sus otras pólizas de seguro con su seguro de automóvil.
18. La mayoría de las compañías de seguros dan descuentos para el pago de la prima de seguro en una política en su totalidad.
19. Muchas compañías de seguros dan un descuento si usted paga su seguro a través de una cuenta de cheques o tarjeta de crédito, también llamado el pago mediante transferencia bancaria (transferencia electrónica de fondos).
20. Usted también puede obtener un descuento si usted es una madre soltera.
21. Algunas compañías de seguros también pueden ofrecer la opción de hacer negocios a través de Internet. Esto puede ser un descuento adicional.
22. Hay un descuento con muchas empresas para que se libre de accidentes.
23. Puede obtener descuentos si su automóvil tiene un depocitivo de anti-robo
24. Hay un descuento de alto deducibles. De hecho, cuanto más alto sea el deducible que usted elija, él más bajo de su total del primium será
25. Los descuentos también se pueden aplicar si vive en ciertas áreas del estado.
26. Un descuento puede ser posible para poner un joven conductor en la póliza de seguro como el operador de determinados aeromóviles.
27.. Usted también puede tener derecho a un descuento si usted ve un vídeo dado por la compañía de seguros.
28. Un descuento es también si su hijo o hija tomó un curso de formación de conductores.
29. También puede obtener un descuento por ser un militar.
30. Algunas compañías de seguros ofrecen descuentos para los límites inferiores.
31. Algunas compañías de seguros ofrecen descuentos si usted trabaja para algunas empresas.
32. Usted puede obtener un descuento si usted es un agricultor.
33. También hay un descuento para la cobertura completa, lo que significa que usted tiene cobertura por daños a la otra persona en la mañana de accidentes y también su propio coche.
34. Usted puede obtener grandes descuentos para asegurar vehículos clásicos o antiguos.
35. Diferentes compañías ofrecen descuentos si usted maneja ciertos tipos de automóviles.
36. Hay un descuento de larga distancia estudiante conductores. Por lo general, para calificar, el estudiante debe ir a la escuela más de 100 millas de su domicilio.
Nota: los descuentos varían de una compañía a otra. No todos los descuentos se aplican a todas las compañías de seguros.
36 Discounts for Cheap Auto Insurance in Philadelphia, Pennsylvania
Are You Getting the Discounts You’re Entitled To? If not call 1-800-231-3227 or visit our website www.floreyinsurance.com
Some of the most common discounts are:
Being Married
Having Triple A
Renting an Apartment
Being Insured for more than 5 years
There are Companies that will not cancel your policy regardless of Claims
Driver Training
Over 55 Driver Training
New Home Construction
Group Enrollment
Discount for Pleasure Use of Vehicle
Discount for Limited Tort
Many people are unaware of the large number of savings and discounts available when shopping for car insurance in Pennsylvania. We will present you with 36 easy tips that can potentially save you hundreds on your insurance premium.
1. Make sure you know how far you drive per year. Some companies offer discounted rates if you travel under a certain mileage annually.
2. A good credit score often gives a discount. Although, many companies rate credit scores different ways.
3. Many companies offer a discount for maintaining active insurance coverage prior to switching to another carrier.
4. Some insurance companies give a discount for carrying prior Bodily Injury (BI) Limits of 100/300 or higher.
5. Many companies offer a discount for simply owning a home. With some, you may get this credit for owning a home even if it is not written with the same company as your auto insurance.
6. Insurance companies also may offer a discount if you put your home and auto policies together with one company. This is what’s called the “multi-policy discount”.
7. Some companies may offer a discount for owning a manufactured home and combining it with your auto policy.
8. Companies often offer what’s called a “multi-car” discount on an auto policy. This discount can be given if you insure 2 or more cars on the same policy.
9. Some companies offer a discount for combining your mobile home and car together on the same policy.
10. Many companies offer an advanced quoting discount if you get an insurance quote 8 or more days before the renewal date on your insurance policy.
11. Some insurance companies give a discount for insuring both a car and a motorcycle with the same company.
12. Some companies offer a discount if you insure a boat and a car with the same company.
13. Several companies offer a discount for student drivers with a GPA at or above a certain average, depending on the company.
14. Some companies offer a discount if you’re a teacher.
15. Some offer a discount for firemen.
16. Others offer a discount for being a policeman.
17. You may be able to get a discount if you put your other insurance policies with your auto insurance.
18. Most companies give discounts for paying the insurance premium on a policy in full.
19. Many companies give a discount if you pay your insurance through a checking account or credit card, also referred to as paying through EFT (Electronic Funds Transfer).
20. You may also be able to get a discount if you are a single parent.
21. Some companies may also offer the option of doing business over the internet. This can be an additional discount.
22. There is a discount with many companies for being accident free.
23. Discounts can also be given if you have anti-theft devices such as an alarm system on your car.
24. There is a discount for high deductibles. In fact, the higher the deductible you choose, the lower your total premium will be.
25. Discounts can also be applied if you live in certain areas.
26. A discount may be possible for putting a youthful driver on the policy as the operator of certain cars.
27. You may also be entitled to a discount if you watch a video given by the company.
28. A discount is also given if your son or daughter took driver training.
29. You may also get a discount for being in the military.
30. Other companies offer discounts for lower limits.
31. Some carriers offer discounts if you work for certain companies.
32. You can get a discount if you are a farmer.
33. There is also a discount for full coverage, which means you carry coverage for the other person in an accident and your own car too.
34. You can get big discounts for insuring antique or classic cars.
35. Different companies offer discounts if you drive certain types of cars.
36. There is a discount for long-distance student drivers. Usually to qualify, the student must go to school >100 miles from their residence address.
NOTE: Discounts vary from company to company. Not all discounts listed are applicable to all insurance companies.