Pennsylvania Car Insurance: Requirements, Rates, and Best Companies
Pennsylvania has a unique "choice no-fault" system that gives drivers options most states don't offer. Understanding this system, along with the state's moderate rates and specific requirements, is essential for every Pennsylvania driver.
This guide covers Pennsylvania's insurance laws, costs, and money-saving strategies.
Pennsylvania Minimum Insurance Requirements
Mandatory Coverage
Pennsylvania requires:
| Coverage | Minimum Required |
|---|---|
| Bodily injury per person | $15,000 |
| Bodily injury per accident | $30,000 |
| Property damage per accident | $5,000 |
| Medical benefits (PIP) | $5,000 |
Commonly written as: 15/30/5 with $5,000 medical benefits
State Minimum Car Insurance: Is It Enough?
Choice No-Fault System
Pennsylvania is one of only three states with a "choice" no-fault system:
| Option | What It Means |
|---|---|
| Full tort | You retain unlimited right to sue for pain and suffering |
| Limited tort | You give up right to sue for pain and suffering except for serious injuries (in exchange for lower premiums) |
Full Tort vs. Limited Tort
| Feature | Full Tort | Limited Tort |
|---|---|---|
| Premium | Higher (~15–30%) | Lower |
| Right to sue | Unlimited | Limited to serious injuries |
| Serious injury threshold | N/A | Death, serious impairment, permanent disfigurement |
| Recommended for | Most drivers | Budget-conscious with understanding of limitations |
Average Pennsylvania Car Insurance Rates
By City
| City | Average Annual Premium | vs. State Average |
|---|---|---|
| Philadelphia | $2,400 | +50% |
| Pittsburgh | $1,500 | -6% |
| Allentown | $1,400 | -12% |
| Erie | $1,300 | -19% |
| Reading | $1,450 | -9% |
| Scranton | $1,350 | -16% |
| State average | $1,600 | Baseline |
By Age
| Age | Average Annual Premium |
|---|---|
| 16–19 | $5,000 |
| 20–29 | $2,100 |
| 30–39 | $1,450 |
| 40–49 | $1,350 |
| 50–59 | $1,300 |
| 60+ | $1,350 |
Pennsylvania-Specific Insurance Laws
Choice No-Fault Explained
| Aspect | Details |
|---|---|
| Medical benefits | Your insurance pays first regardless of fault |
| Election form | Must choose full or limited tort at purchase |
| Change option | Can change at renewal with written notice |
| Household rule | All household members typically follow same choice |
First Party Benefits (FPB)
Pennsylvania requires insurers to offer additional first party benefits:
| Benefit | Description |
|---|---|
| Extraordinary medical benefits | $1,000,000+ for catastrophic injuries |
| Income loss | Replaces wages after accident |
| Funeral benefit | Covers burial expenses |
| Accidental death | Death benefit for policyholder |
Stacking of Uninsured Motorist Coverage
Pennsylvania allows "stacking" of uninsured motorist coverage:
| Stacking Type | How It Works |
|---|---|
| Inter-policy | Combine UM limits across multiple policies |
| Intra-policy | Combine UM limits for multiple vehicles on one policy |
Best Car Insurance Companies in Pennsylvania
By Category
| Category | Best Company | Why |
|---|---|---|
| Cheapest overall | Erie Insurance | PA-based, excellent rates |
| Best customer service | USAA | Top ratings (military only) |
| Best for Philadelphia | State Farm | Strong urban presence |
| Best for bundling | Allstate | Multi-policy discounts |
| Best digital experience | GEICO | Excellent online tools |
| Best regional | Erie Insurance | PA-founded, strong local presence |
Average Rates by Company
| Company | Average Annual Premium |
|---|---|
| Erie Insurance | $1,200 |
| GEICO | $1,300 |
| State Farm | $1,400 |
| Progressive | $1,500 |
| Allstate | $1,600 |
| Nationwide | $1,500 |
How to Save on Pennsylvania Car Insurance
Pennsylvania-Specific Strategies
| Strategy | Potential Savings |
|---|---|
| Erie Insurance (regional) | 10–25% |
| Limited tort option | 15–30% |
| Defensive driving course | 5–10% |
| Multi-policy discount | 10–25% |
| Good student discount | 5–25% |
General Strategies
- Shop around every 2–3 years
- Increase deductibles to $1,000
- Maintain continuous coverage
- Drive a safe, used vehicle
- Bundle home and auto policies
- Consider telematics programs
How to Lower Car Insurance Premiums: 20 Proven Strategies
FAQ
Is Pennsylvania a no-fault state?
Pennsylvania is a "choice" no-fault state. You choose between full tort (unlimited right to sue, higher premium) or limited tort (restricted right to sue, lower premium). Regardless of choice, your medical benefits are paid by your own insurance first.
What happens if I drive without insurance in Pennsylvania?
Penalties include $300 fine for first offense, license suspension for 3 months, $176 restoration fee, $94 compliance fee, and vehicle impoundment possible. Subsequent offenses carry higher fines and longer suspensions.
Should I choose full tort or limited tort?
Most experts recommend full tort despite the higher cost. Limited tort saves 15–30% but severely restricts your right to recover damages for pain and suffering. The savings may not be worth the risk if you're seriously injured.
Does Pennsylvania require uninsured motorist coverage?
No, but insurers must offer it. You can reject it in writing. With 7.6% of Pennsylvania drivers uninsured, experts recommend carrying it. Pennsylvania also allows stacking, which increases protection.
What is stacking in Pennsylvania?
Stacking allows you to combine uninsured motorist coverage limits across multiple vehicles or policies. For example, if you have two cars with $100,000 UM each, stacking gives you $200,000 in total coverage. This provides valuable extra protection.
Conclusion
Pennsylvania's choice no-fault system gives drivers flexibility but requires careful decision-making. Erie Insurance offers excellent regional rates, and Philadelphia drivers should expect significantly higher premiums than the rest of the state.
Key takeaways:
- Minimum: 15/30/5 + $5,000 medical benefits
- Average premium: $1,600/year
- Philadelphia is 50% more expensive than state average
- Choice no-fault: full tort vs. limited tort
- Limited tort saves 15–30% but restricts lawsuit rights
- Erie Insurance is a top regional choice
- Stacking uninsured motorist coverage is allowed
State Minimum Car Insurance: Is It Enough?