The law relating to auto insurance is found in a statute entitled Pennsylvania
Motor Vehicle Financial Responsibility Act, 75 P.S. Section 1701. The law
contains the duties and responsibilities of both the insurer and the insured.
The insured, when purchasing auto insurance has the option to select full tort
or limited tort. While limited tort is described by insurance agents as being
more attractive than full tort in that it is less expensive, it is a mistake to
select limited tort. The reason for this is the savings is minimal and if you or
your family are injured due to the negligence and carelessness of another
driver, by selecting limited tort you have given away most of your rights, to
save only approximately $100.00 a year. The courts have strictly interpreted the
limited tort selection and have thrown a lot of people out of court who
otherwise have legitimate claims because they selected limited tort. In
selecting limited tort you give up your right to sue except if you have a
serious injury. A serious injury has been defined as death, disfigurement or a
serious impairment of a body function. The courts are finding a lot of injuries
that may be considered serious to the individual not to be serious. Therefore,
it is important that full tort be selected on the auto insurance policy for full
protection to your family.
In the event you are in an automobile accident, you should know that your auto
insurance company is required under law to pay your medical bills up to the
amount of your coverage, 80% of your gross income in the event you selected wage
loss coverage. Medical bill coverage is mandatory and every person purchasing
auto insurance in Pennsylvania must purchase at least $5000.00 in medical bill
coverage. Wage loss coverage is optional and you do not have to select this
coverage. This gives them no protection in the event they are injured in an
accident, unless they have their own disability policy. A lot of people when
purchasing auto insurance do not select wage loss coverage. A lot of people have
trouble making ends meet if they don't have wage loss protection on their policy
or through their own disability policy. People think that because someone else
was at fault the at fault party is automatically going to begin paying your wage
loss. This is not rue. It is true that wage loss and loss of earnings is a part
of any claim that you may have against the other driver, however, the insurance
company for the other driver wants to settle all claims at one time and will not
pay claims piecemeal.
Another optional coverage is uninsured motorist coverage and underinsured
motorist coverage. This coverage is very important and should be selected by
anyone purchasing auto insurance. Uninsured motorist coverage protects you in
the event that you are hit and injured by a driver who is uninsured.
Unfortunately, there are a lot of people driving without insurance and if you
are hit by an uninsured driver the odds are great that this uninsured driver
will not likely have any assets from which you can collect in the event you file
a claim. But if you have uninsured motorist coverage you will be able to make a
claim against your own company for the benefits you justly deserve.
Underinsurance is also a very important coverage that you should buy when
purchasing auto insurance. Underinsurance benefits protects you in the event you
are struck and injured by an underinsured driver. For example, say a drunk
driver goes through a red light and hits you and your spouse broadside. You and
your spouse are badly injured and are both out of work for six months. Your
medical bills are in excess of $100,000.00, your wage loss is in excess of
$25,000.00, you have permanent injuries which will bring with it pain and
suffering, and the drunk driver had only $15,000.00 worth of insurance and no
assets. If you purchased underinsured motorist benefits you could go to your
insurance company and make a claim against your own insurance since the driver
that hit you is underinsured. If you don't select this coverage you are stuck
with the $15,000.00 the drunk driver had and that's all you will get and it will
never replace what you have lost.
So remember, when purchasing auto insurance, it's very important to purchase
uninsured motorist and underinsured motorist coverage. When buying your
insurance you must fully protect yourself and your family. At Munley,
Munley & Cartwright, our goal is to provide exceptional legal services to our
clients. We strive to achieve the highest standard of excellence for the
protection of individual rights through team work and the use of our
considerable resources and experience. Whether we?re gathering evidence,
giving advice, or talking with insurance companies, we are always your
representative.
CAR / AUTO
ACCIDENT QUESTIONS & ANSWERS
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