What Are Pennsylvania’s Car Insurance Requirements?

With over 9,000,000 licensed drivers operating vehicles on Pennsylvania’s roadways, car insurance regulations play a critical role in protecting the safety of motorists, passengers, pedestrians and community members. Whether you’re a born-and-bred Pennsylvanian or have recently relocated to the Commonwealth, understanding local laws about car insurance can help you stay compliant, avoid costly penalties and cover all of your bases in the event of an accident.

Let’s take a closer look at the ins and outs of Pennsylvania’s car insurance requirements and discuss how an experienced car accident attorney can help you get the most mileage possible out of your required coverage.

Do you have to have car insurance in Pennsylvania?

In a word: Yes. Pennsylvania law requires that most drivers carry vehicle liability insurance in order to legally operate a vehicle. That’s because insurance helps ensure that drivers can cover accident-related expenses like property damage, personal injuries and even wrongful death claims.

In order to maximize the safety of drivers and passengers across the Commonwealth, Pennsylvania stipulates that drivers must have active insurance coverage for a currently registered vehicle. Failing to adhere to these insurance requirements can lead to significant penalties like:

• Traffic infractions
• Fines
• License suspension

Even if you had insurance previously but let it expire, you may still be subject to enforcement actions like the suspension of your vehicle registration for up to three months. Subsequently, it is crucial that Pennsylvania drivers maintain active vehicle liability insurance and take steps to avoid any potential lapses in coverage throughout the year.

What are the minimum insurance requirements in Pennsylvania?

In order to ensure all motorists are covered to a certain extent while operating registered vehicles, Pennsylvania has certain minimum insurance coverage levels that every driver must maintain. In Pennsylvania, minimum insurance requirements are as follows:

Bodily injury liability

Bodily injury insurance coverage is a type of liability insurance intended to cover certain expenses if another person is injured in a car accident you caused. In Pennsylvania, the minimum amount of bodily injury liability insurance drivers are required to carry is $15,000 per person injured and $30,000 per accident total.

Property damage liability

As the name would suggest, property damage liability insurance covers the cost of any damage you cause to another person’s property during an accident. While this coverage most often applies to damage caused to another party’s vehicle, it can also be used to cover the costs of damage to someone’s fence, mailbox, lawn, etc. In Pennsylvania, drivers are required to maintain at least $5,000 worth of property damage liability insurance per accident, but many drivers opt for higher limits for an added layer of financial protection.

Personal injury protection (PIP)

Pennsylvania requires drivers to carry a minimum of $5,000 in First Party Benefits (medical benefits), which function similarly to PIP and cover medical expenses regardless of fault.

Uninsured/Underinsured motorist coverage

In Pennsylvania, insurance companies are required by law to offer uninsured motorist coverage as part of every standard auto insurance policy. The minimum amounts of coverage they must offer are $15,000 per injured person and $30,000 per accident. However, drivers are not legally required to purchase uninsured or underinsured motorist coverage and may choose to sign a written waiver opting out of the coverage if they wish to.

Pennsylvania car insurance law: What is a no-fault state?

If you’ve done any research into Pennsylvania auto insurance requirements, you’ve likely run across the term “no-fault.” Pennsylvania is what’s known as a “choice no-fault” state. This means all drivers are required to carry medical benefits coverage (First Party Benefits) that pays for their own medical expenses regardless of who caused the car crash. This no-fault coverage is mandatory and helps to ensure claims can be paid in a timely manner.

However, Pennsylvania also gives drivers a choice between two options when purchasing car insurance:

• Limited tort: You pay a lower premium but give up the right to sue the at-fault driver for pain and suffering in most cases. You can still recover medical expenses and lost wages.
• Full tort: You pay more, but retain the full right to sue the other driver for both economic and non-economic damages, including pain and suffering.

This “tort election” is what makes Pennsylvania a choice no-fault state. While your own insurer handles medical benefits, your ability to sue the at-fault party for additional damages depends on which tort option you chose when buying your policy.

Choosing limited tort coverage is rarely a good decision as it severely limits your ability to pursue a claim when you were injured through no fault of your own. Yes, full tort coverage is more expensive, but only slightly more so. Unfortunately, serious accidents may result in injuries or property damage that far exceed no-fault benefits, in which case an injured party may need to file a lawsuit against the at-fault driver for the additional compensation they need to support their recovery. In these cases, it is important for accident victims to consult with an experienced car accident attorney to determine the best course of action.

More about optional coverage

Pennsylvania drivers have options when selecting a car insurance policy, including:

• Comprehensive coverage: This coverage protects your car from damage NOT related to a collision, such as damage caused by natural disasters, fires or vandalism.
• Collision insurance: These benefits are intended to cover the cost of repairing or replacing your own vehicle after a crash.
• Substitute transportation coverage: This added benefit is meant to help accident victims pay for rental cars, public transportation or rideshare services if their vehicle is rendered inoperable after an accident.
• Loan/lease gap insurance: This coverage helps drivers cover the cost of their loan or lease payments if their car was totaled in an accident.

While Pennsylvania drivers are not required to opt into any of these benefits, many motorists appreciate the added protection these plans offer – even if it means paying a little more out of pocket on a monthly or yearly basis.

Final thoughts

Pennsylvania car insurance requirements exist to protect drivers, passengers and property on and off the road. With well over 100,000 motor vehicle accidents reported across the Commonwealth in 2024, it is vital that Pennsylvania drivers comply with insurance requirements to keep themselves and others as safe as possible. While there are clear and critical minimum requirements established by Pennsylvania law, many drivers stand to benefit from additional coverage like uninsured motorist coverage, collision insurance and more.

All of these protections combined can provide motorists with a greater sense of personal, physical and financial security. If you’re unsure about your insurance coverage or feel you may have been unjustly prevented from using your insurance benefits following a car accident, the experienced car accident attorneys at KBG Injury Law might be able to help. Whether you’re navigating the claims process or are considering filing a lawsuit for accident-related compensation, our local team can help you navigate the system with more ease and confidence.

If you have questions about Pennsylvania car insurance law or need help after a car accident, contact our experienced Pennsylvania personal injury attorneys for a free consultation. We’re here to help you understand your options.