Understanding Auto Insurance Requirements In Exeter, PA

April, 2014 by Alma Abell

The state of Pennsylvania is classified as a no-fault state in terms of automobile insurance requirements. This implies that all drivers involved in the accident are required to file a claim through their respective policies regardless of who caused the accident. The laws were initiated as a method to deter the need for litigation. However, the individual who caused the accident is deemed a high-risk driver and subject to increased insurance premiums.

What are the Automobile Insurance Requirements for Pennsylvania?

Pennsylvania requires that all drivers acquire liabilityauto insurance in Exeter PA that offers specific values of coverage. These requirements are $15,000 for each individual who is injured in an automobile accident. It should cover $30,000 when there was more than one person who sustained an injury and $5,000 in property damage.

Any driver with a recent or past DUI conviction may be required to carry SR22 insurance. This policy extends liability coverage based on the probability that the driver may become involved in an automobile accident. Drivers, with DUI convictions, who fail to comply with this requirement are subject to fines associated with a lack of insurance and potentially contempt of court.

What Factors Determine Premium Rates

An agent offering auto insurance in Exeter PA establishes the premiums paid by the driver based on certain factors. They begin by analyzing his or her driving record. Drivers with multiple traffic violations, typically, pay the highest premiums due to risks. Married couples are issued premiums based on both driving histories. They are not afforded an exclusion based on the assumption that they will not drive their spouse’s vehicle, or if it is registered in only one name.

The type of job held by the driver, and his or her daily commute is considered. Any job positions which require extensive travel or driving during high-traffic periods will increase the premiums needed for insurance. Typically, drivers who have a shorter daily commute pay less in premiums; those who only drive once or twice a week may acquire high discounts.

Gender and age are other factors evaluated. Pennsylvania statistics imply that women are less likely to become involved in an automobile accident than men. Drivers who are twenty-five and younger are considered more of a risk than seniors. Discounts are also available to seniors who are at least fifty.

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