Auto insurance is a legal requirement in Pennsylvania as it is in most countries around the world. This is because of you as a driver must be insured to cover any loss, damage or injury that you may cause to someone else whilst driving. Pennsylvania law refers to this as maintaining financial responsibility for your car.
Not having auto insurance in Pennsylvania is a serious matter and in addition to your driving license being suspended there are a number of other course of action available. These include a minimum $300 fine plus additional cost, suspension of your driver’s license and / or vehicle registration and your car being impounded.
The Pennsylvania Insurance Department is the government body for insurance in the area and they are able to provide information and advice on all insurances including auto insurance. If you are unsure of anything including questions about the conduct of your insurance company or agent they will be able to advise you on what to do.
When purchasing Pennsylvania auto insurance cost is a consideration for most people. By understanding in principle how your premium is calculated you can take actions yourself to lower your auto insurance costs. Whilst, your insurance company and broker may not be able to answer every single question (as the criteria for calculate your specific premium is usually very complex and therefore computerized) they should be able to advise you on basic considerations.
Of course, there are certain factors that are taken into to consideration that you can do nothing about or are just not practical to do anything about. For example, your age, gender and your address can be taken into consideration. Other factors that may be taken into consideration are more easily overcome such as the year, value, make and model of car (if you are in the process of buying) and where your vehicle is going to be kept overnight. Each insurance company is different and there are certain factors that cannot be taken into consideration by law.
You can often save interest charges by paying for your Pennsylvania auto insurance annually rather than by installments and it is always worthwhile asking about discounts that can be offered by the company. By getting a number of quotes you can sometimes get insurance companies to match competitor’s quotes and if you can afford a higher deductible (sometimes called an excess) then this may also lower your premiums.