Part 2 of 4-part series, prepared by Peter L. Johnston, Esq., Philadelphia Car Accident Attorney
What then does automobile insurance in Pennsylvania provide for? First, your automobile policy provides payment for the medical bills that arise as a result of injuries that you suffer in any automobile accident, regardless of who is at fault. For that reason, automobile insurance is called “no-fault” insurance. Even if you are injured in an accident in someone else’s car (as a passenger or otherwise) or struck by a motor vehicle as a pedestrian, your own policy pays your medical bills. Contrary to popular belief, the other driver of the other vehicle involved in the accident does not pay your medical bills. However, it should be duly noted that your policy only pays your bills up to the amount of coverage that you purchase. Any bills that exceed that amount have to be handled by your health insurance or other sources.
Second, if you purchase collision or comprehensive coverage, your policy insures you against damage to or loss of your vehicle.
Third, your automobile insurance policy protects you against claims that others make against you regarding any accidents in which you are involved. However, that coverage only extends to the policy limit that you purchase. For example, if you purchase a policy that has $15,000 in coverage, the most your policy will pay out to another motorist or injured party is $15,000. For that reason, if you have significant assets or income, it would probably be wise for you to purchase more coverage.
Tomorrow I will discuss Limited Tort vs. Full Tort policies.