AUTO ACCIDENT BASICS – WHO PAYS WHAT IN PENNSYLVANIA
It can be difficult to navigate the insurance market after an accident. Many questions surround who pays for injuries, property damage, and medical bills. It is possible to save time and effort by understanding the basics of auto accident law before you actually need it.
BODILY INJURY LIABILITY
A. What is the Price?
Pennsylvania law requires that car owners carry at least $15,000 in bodily injury liability coverage. This covers personal injuries sustained by another driver in the event of an accident. Higher amounts are available to drivers.
B. Who Pays?
Bodily injury coverage can be provided to any driver involved in an auto accident regardless of fault. For example, Driver A may cause an accident with Driver C, resulting in Driver C suffering serious injuries. Driver A’s auto policy covers the minimum $15,000 state bodily injury liability coverage. Driver B may file a claim for personal injuries under Driver A’s policy up to $15,000 Driver B’s recovery options may be limited, depending on whether Driver A selected Full Tort or Limited Tort under his auto policy.
C. How it Works
An injured driver may be able to sue the other driver’s insurer for bodily injury liability coverage in certain instances. If the insurance company refuses to pay fair and reasonable compensation, then the injured driver could file a lawsuit against that driver.
PROPERTY DAMAGE
A. What is the Price?
Pennsylvania law requires that car owners carry at least $5,000 in property damage coverage. This covers property damage caused by another driver in the event of an incident. Higher amounts are available to drivers.
B. Who Pays?
This coverage is often misunderstood. It is not available to an uninsured driver under his policy. It is instead available to the other driver involved in an accident and is dependent on fault. In this example, Driver A causes an incident with Driver B. Drivers B and Driver A’s cars are totaled. Driver A has $10,000 coverage for property damage. Driver B may file a claim under Driver’s auto policy for the fair value of the car totaled, up to $10,000. Let’s say Driver A’s car was damaged in the same scenario. Driver A can’t file a claim for property damage under his own policy. Property damage coverage is available only to the other driver, and it is determined based on fault.
C. Collision Insurance and Comprehensive Coverage
Comprehensive coverage and collision are optional. They cover various types of damage to your vehicle. Collision covers damage to an automobile caused by an accident, less a deductible. Comprehensive coverage includes any damage that is not caused by an accident, including fire, theft, and so on, but less a deductible. Drivers who have purchased this coverage can file a claim under their auto policy. If he has collision coverage, Driver A, the driver who caused the accident can file a claim to have his vehicle repaired. Driver A would be responsible for any repairs if he did not have collision coverage.
D. How it works
An innocent driver can file a property damage claim directly to their auto insurance company if the auto of another driver is damaged by an accident. This is the easiest way to file a property damage case, provided that the accident was clearly caused by the other driver. An innocent driver may file a property damage claim with his auto insurance company if he has collision coverage. The deductible would then be deducted from the amount that was recovered. Because the accident was caused by the other driver, the innocent driver’s auto insurer company should request the deductible from that company. The deductible should eventually be returned to the innocent driver.
Our example shows that Driver A is responsible for an accident with Driver C. Driver B has collision coverage and a $500 deductible. Driver B can choose to file a claim with Driver’s insurance company, or his own insurance company. He would be entitled to the fair market value less the $500 deductible if he filed a claim with his own insurer. His auto insurance company would then request reimbursement from Driver A for the fair value and deductible. Driver B would then be entitled to the $500 deductible from his insurance company, as the accident was Driver’s fault.
Property damage claims are usually filed without resorting to litigation. If the innocent driver purchased this coverage, incidentals like rental car costs or towing/storage are immediately compensable. They will be out-of-pocket expenses in a personal injury lawsuit against another driver.