There are various types of coverage supplied by most automobile insurance companies.

A. "Limited Tort" and "Full Tort"- In Pennsylvania, every person who maintains an auto insurance policy must select either "Full Tort" or "Limited Tort" coverage. If you select "full tort" you and your family have the right to present a claim for bodily injuries against a driver who causes an accident, even if your injuries are considered minor (although the injuries may not be minor to you).

However, if you select "limited tort" your insurance company will give you a small reduction in your insurance costs, usually about $150 to $300 per year per car insured. In exchange you and your family waive the right to present a claim for bodily injuries unless those injuries are considered to be "serious injuries". In order to be considered serious an injury must have significantly affected your ability to perform your normal activities of daily living for a long period of time, and must have caused you to suffer a significant amount of pain and discomfort during that period of time. It is only the most serious types of injuries which qualify for coverage under "limited tort" as "serious injuries". For example, if you are subject to the "limited tort" selection, and if you or your child suffers a muscle or ligament sprain and strain in an auto accident, even if the injury causes great pain and suffering for a long time and seems serious to you, it is very unlikely you or your child will be able to recover any money to compensate for that pain and suffering. Even some fractures or "slipped disks", as well as other more serious injuries, may not qualify as a "serious injury" under the auto law. Therefore I strongly recommend that you maintain "full tort" coverage because if you select "limited tort" you or a member of your family may have an injury which causes you great hardship, financially, physically, and emotionally, and still be unable to recover any money from the other driver’s insurance company. If you believe you have selected "limited tort", I strongly recommend that you contact your insurance company and request a quote on the cost to change to "full tort".

B. Liability Coverage- This is the coverage which protects you in the event you are at fault in causing an accident and are determined to be responsible for paying the damage to the other driver’s car, or the bodily injuries suffered by someone else in the accident. The insurance company will pay the amounts which you may be obligated to owe, up to the limits of the coverage.

1. Limits of coverage- Every insurance policy has a limit of coverage. This is the maximum amount which the insurance company will pay, even if it is determined that an additional amount is owed. Therefore, it is important that your insurance policy has sufficient coverage so that you will not face financial hardship if you are obligated to pay a large amount to another person.

(a) Split Limits- Some insurance policies are written with what is known as "split limit coverage". For example, you may see on your policy under the liability section $15,000/$30,000. This means that the insurance company will pay a maximum of $15,000 to any person who suffers injuries as a result of your negligence, with an additional maximum of $30,000 combined to all injured persons, if there is more than one person injured in the accident. For example, if five persons are injured as a result of your negligence, your insurance company will not pay more than $15,000 to any person injured, and will not pay more than $30,000 total for all five persons injured.

(b) Single Limits- Some insurance policies are written with what is known as "single limit coverage". For example, you may see on your policy under the liability section $100,000. This means that the insurance company will pay a maximum of $100,000 for all the persons who are injured as a result of your negligence. One person could receive the entire $100,000, or that amount can be divided in any way among two or more persons.

B. First Party Benefits

In insurance company technical language, you, as the purchaser of insurance, are known as the "insured" or the "first party". Most automobile insurance policies provide various coverages under which you, as the insured, may receive money.

1. Medical Payments- In Pennsylvania, and some other states, every auto insurance policy must provide coverage for medical bills which you, as the insured, may become obligated to pay as a result of receiving medical care from injuries suffered in an auto accident. Under this coverage, the insurance company is responsible for paying the medical bills, up to the limits of coverage, no matter who is at fault in causing the accident. In most states, the insurance company is not permitted to recover the amount it pays from the driver who is at fault. Further, the insurance company in most states is not permitted to increase the cost of insurance paid by you, the insured, or refuse to renew the insurance policy, merely because it paid the medical bills.

(a) Limits of Coverage- In Pennsylvania, the auto insurance company must provide at least $5000 as the minimum amount of medical bill coverage. You may purchase additional amounts. If you do not have health insurance, I strongly recommend that you purchase at least $10,000 of coverage, if not more.

2. Uninsured Motorist Benefits- Uninsured Motorist Benefits (usually abbreviated UM) pay you, as the insured, if you were injured as a result of the negligence of another driver who had no insurance, or if the driver who caused the accident fled the scene of the accident. Under this coverage, your insurance company pays you in just the same way the other driver’s insurance company would have paid you, if there was an insurance company. Like medical benefits, the insurance company in most states is not permitted to raise your rates, or refuse to renew coverage, merely because it paid UM benefits.

In Pennsylvania, UM coverage is optional. However, I strongly recommend that you maintain this coverage on your policy. First, there are a large percentage of drivers who do not maintain any insurance. Therefore, if you are involved in an accident with one of these driver’s, you will receive no compensation for your injuries unless you have UM coverage. Second, UM coverage is relatively inexpensive. If you believe you have waived this coverage, I strongly recommend that you contact your insurance company and request a quote on the amount it will cost you to maintain UM coverage in the same amount as your liability coverage.

3. Underinsured Motorist Benefits- Underinsured Motorist Benefits (usually abbreviated UIM) pay you, as the insured, if you were injured as a result of the negligence of another driver who maintained insurance coverage, but with limits of coverage insufficient to compensate you for your injuries. For example, assume the driver at fault maintained an insurance policy with maximum liability limits of $25,000, which was paid to you. Also assume that you were seriously injured and the monetary value of your injuries were $100,000. If you maintained underinsured motorist coverage, your insurance company would pay you additional benefits, up to $75,000 ($100,000 injury value minus $25,000 received from the other insurance company) or the limits of your UIM coverage, whichever is less. Like UM benefits, the insurance company in most states is not permitted to raise your rates, or refuse to renew coverage, merely because it paid UIM benefits.

In Pennsylvania UIM coverage is optional. However, I strongly recommend that you maintain this coverage on your policy. First, there are a large percentage of drivers who maintain insurance with minimum limits of coverage. In Pennsylvania the minimum coverage for liability is $15,000. Therefore, if you are involved in an accident with one of these driver’s, you may receive only $15,000 as compensation for your injuries unless you have UIM coverage. Second, UIM coverage is relatively inexpensive. If you believe you have waived UIM coverage, I strongly recommend that you contact your insurance company and request a quote on the amount it will cost you to maintain UIM coverage in the same amount as your liability coverage.

4. Stacking- Stacking is the ability to add together the coverages for UM benefits or UIM benefits if the insurance policy provides for coverage of more than one vehicle. For example, if you have two vehicles insured on your auto policy, and you maintain UM coverage of $25,000/$50,000, with stacking you would multiply your UM limits times two (the number of cars on the policy), so that your limits would be $50,000/$100,000. Stacking does not apply to medical payments or liability limits. In Pennsylvania stacking is optional. I strongly recommend that you maintain stacking on your policy. It is a relatively inexpensive way to increase your policy limits.

5. Collision and Comprehensive Coverage- Collision and comprehensive coverage provide protection for your car. Collision coverage provides protection if your car is damaged in an accident. Comprehensive coverage provides protection if your car is damaged other than in an accident, for example in a fire or through vandalism. Both coverages carry a deductible, usually between $100 and $1,000. This means you are responsible to pay the deductible, and the insurance company pays the balance of any amount needed to repair your car.

6. Auto Rental Coverage- Auto rental coverage will pay a certain amount per day for you to rent a car while your car is being repaired. It is very inexpensive, usually about $10 to $20 per year.