|
News and Information |
What you need to know when purchasing your Pennsylvania Auto Insurance Policy.
Under Pennsylvania Law and Regulations every insurer in Pennsylvania must make you aware of the various insurance coverages that you can purchase. Perhaps the most important decision you will make is what insurance to purchase. The first type of coverage that is mandatory in Pennsylvania is liability coverage. That is coverage that is available if you injury someone else or their property. Currently in Pennsylvania the mandatory minimum limit is $15,000.00 for damage or injury to one person and $30,000.00 for damage or injury to multiple persons. Certainly, we would recommend that if possible you increase that limit to a higher amount to protect you in the event that you injure someone else and also since it allows you to purchase more coverage for yourself. The cost of increased coverage can be quite minimal so check with your agent.
The second option that you have in Pennsylvania is whether to elect limited tort coverage or full tort coverage. If you elect to choose limited tort coverage then for a modest reduction in your insurance premium you give up substantial rights. If you have elected limited tort coverage then you and your family members may only recover for your injuries caused by another person if you are able to show that you have suffered a serious injury. This means that an accident can be completely someone else’s fault, you can be injured and still not recover one penny. Although the courts continue to sort out exactly what injuries qualify as serious, there have been courts that have held that persons suffering severe fractures and serious back injuries do not qualify as serious and these injured people were then unable to recover anything for the pain and suffering they endured.
Under the full tort option you do not give up any of your rights to recover for injuries caused to you or a family member by someone else's fault. Regardless of the severity of your injuries you are entitled to recover for any injuries caused. Needless to say, we would strongly urge you to purchase full tort coverage. The money you save by purchasing limited tort coverage is quite small for the rights that you give up and again, we would urge you to contact your agent to see if you are saving enough money to give up this right.
Finally, you will also be offered the opportunity to purchase uninsured and underinsured coverage. For you personally, these can be the most important coverages available. You are entitled to purchase both coverages in an amount equal to your liability coverage. If you purchase $100,000.00 in liability coverage then you may also purchased uninsured coverage and underinsured coverage in the amount of $100,000.00. If you are then injured by a driver who does not have insurance (a common occurrence in this area) you are entitled to recover under your uninsured motorist coverage. If you are injured by a driver who has purchased less insurance than you, you may recover for your injuries up to the limit of the underinsured coverage that you purchased. With most people purchasing minimum coverage in this area, again the best way to protect all your rights is to purchase as much underinsured coverage as possible. Again, the cost of this coverage is quite minor. Further, if you have more than one vehicle make sure to select the stacking option which can double or triple your available coverage.
If you have any questions about which coverage to purchase feel free to consult with your insurance agent or call our office at 1-800-524-9481 and we would be happy to give you more information free of charge
What you need to know when purchasing your New York Automobile Insurance policy.
Under New York law you are required to purchase certain minimum insurance coverage. At present a driver must purchase $25,000.00 in liability coverage for injuries or damage to one person and $50,000.00 for injuries or damage caused to more than one person. This coverage protects you in the event that you cause injury to someone else. At the same time you must also purchase no-fault or first party coverage in the amount of $50,000.00. This is coverage for your own medical bills and lost wages in the event of an accident.
Under current New York current, if you are injured in an automobile accident then your own insurance company is responsible for paying all your medical bills and lost wages up to the limit of the coverage you have purchased. It does not matter whose fault the accident is, your own insurance carrier must pay these bills. If you have opted for additional personal injury protection (APIP) or optional basic economic loss (OBEL) coverage than you may also have additional coverage for these bills.
When New York’s no-fault law was enacted, it provided for your protection that all of your medical bills, lost wages and incidental expenses would be covered by your own insurance. However, in exchange the insurance industry wished to eliminate the so called minor cases. In exchange for the no-fault benefits a driver could no longer recover for any personal injuries suffered unless he was able show that he suffered a “serious injury.” This meant that even though you are injured and even though the accident was clearly the other driver’s fault, you could not recovery any money for your pain and suffering unless you are able to show that you suffered an injury that qualifies under this standard.
Although “serious injury” is defined by statute, there is great dispute between the courts on what injuries actually qualify. Under the statute certain injuries clearly qualify such as: death, a fracture, loss of a limb, serious disfiguring scars, and loss of a fetus. Certain other categories are determined on a case by case basis, typically based on what your physician says. These include injuries where the doctor states that the injury is permanent, has resulted in a significant limitation in the ability to use a body part, or where your injuries have prevented you from performing your usual and customary daily activities for at least 90 out of the first 180 days following the accident. In many cases it may take many months to determine if you qualify and we would urge you to consult with an attorney to make this determination.
The next choice that you will have in your insurance policy is whether to purchase Supplementary Uninsured Coverage (SUM). This coverage provides both uninsured motorist coverage and underinsured motorist coverage. The uninsured motorist coverage portion of the policy allows you to recover if you are injured by a driver who has no insurance coverage (a very common occurrence in this area). The underinsured coverage portion allows you to recover additional money in the event that the other driver has less liability coverage than you. You may only purchase SUM coverage up to the limit of your liability coverage. We would urge you to purchase this coverage as it provides your best protection in the event that you are injured by another driver. The cost of purchasing this coverage or increasing the amount of your coverage to equal your liability limits is quite minor and you should consult with your agent for a quotation. Failure to have adequate Underinsured coverage would mean that if you are injured by a driver who has limited coverage you could be left with inadequate compensation for your injuries.
What you need to do if you are involved in an automobile accident.
1. Make sure that the police are called to the scene. Even if you do not believe that you are injured or it is “clear” whose fault it is, it is always best to have the police come to the scene and prepare an accident report. Under New York and Pennsylvania law, the Police must be contacted whenever the crash results in personal injury or death and further, in Pennsylvania whenever a vehicle is so damaged that it must be towed. You will find it much easier to get any property damage claim resolved with the assistance of the police accident report and any statements by the other driver can be preserved in the report.
2. 2. Do not admit that the accident was your fault. Even though you believe that you may have been at fault for the accident, in the shock of the moment, there may be details you have overlooked. Perhaps the other driver was drinking, or speeding or his brake lights were not working at the time of the crash. Any admission that you make will later be used against you.
3. 3. Ask the officer for the other driver’s name and insurance company. By law the other driver must give this information to the investigating officer and it can save you time and trouble. Also ask the officer for his name and which police department he is with. Many officers will also give you a number to allow you to obtain the accident report which will be necessary when you present your claim to the insurance companies.
4. Immediately report the accident to your own insurance company even if the accident was not your fault. The failure to notify your own insurance company within a reasonable amount of time can result in a loss of your rights. Your insurance company can also assist you in finding out information about the other driver’s insurance.
5. D 5. Do not give any written or recorded statements to any insurance company. You do have a duty to report the accident to your own insurance company and explain what happened, but it is better to have your attorney review any documents before they are signed and also better to have an attorney present for any recorded statement to insure that the questions are fair and that the information is accurately transcribed.
6. 6. Shortly after reporting the accident you should receive an application for first party benefits or no-fault application. This is often a long, legal sized yellow or pink form asking a great deal of information about the accident and any injuries that you suffered. This form must be returned to the insurance company within thirty days of the accident. None of your medical bills, incidental expenses or lost wages will be paid until you complete the application and your doctor and employer complete their portions. Again, it is best to have an attorney review this document prior to filling it out as it is critical that it is filled out correctly to enable you to get all of your benefits.
7. 7. In New York complete the MV-104. If you are involved in a motor vehicle accident in New York, you will receive a letter from the Department of Transportation enclosing a form to be filled out. This form called an MV-104, must be completed and submitted to the Department of Transportation shortly after the accident or your driving privileges in New York can be suspended. An attorney can assist you in getting it completed and insuring that it is accurate.
8. 8. Every time you see a medical care provider make sure that you inform them that this is a result of a motor vehicle accident and give them your claim number and insurance company name. If you fail to do so, then it is possible that your bills will not be submitted to the proper insurance company. This can cause a delay in getting the bills paid and create a real hassle down the road. When you report your accident to your insurance company they should give you a claim number for this use.
9. 9. Do not sign a release of your claim. Once you sign a general release you are forever barred from recovering for any injuries you have suffered in an accident. Even if you later learn that your injuries are much more serious, you cannot recover any additional money if you have signed a general release. Even if the other driver’s insurance company is offering you the entire policy limits, it may be possible that there is additional insurance that you are entitled to. By signing a release you may lose all rights you have to recover under these other policies. At Dwyer, Black & Lyle, we would be happy to review any release prior to your signature and at no charge.