What is car insurance?

If you own a car, Pennsylvania requires that you have auto insurance. But the limits that they require are probably not enough to make you feel adequately covered.

Auto insurance can cover roadside assistance, car rental reimbursement and medical benefits such as work loss, death and funeral costs, but their are two main sections to a auto policy:

  1. Liability coverage - which are chosen limits to protect you financially in the event you cause bodily injury or property damage to another person or their property. This coverage is required by law, but only up to a small limit.

  2. Physical coverage - this coverage is optional, but required by lenders. It covers the cost of damage to your car in two ways:​

    • Collision - ex. damage to your car when you back into a light pole in the supermarket.

    • Comprehensive - usually when the care is not moving. ex. theft, vandalism and damage caused by wind.

Things to keep in mind while shopping
  • Find out which liability limit is right for you. A rule of thumb is to make sure your liability limits cover your assets to make sure they aren't vulnerable to a lawsuit. 

  • You have to decide if physical coverage makes sense for you. If you are leasing or financing your car then the lien holder will require that you have it. If you own your car outright, then you can decide if you need it. At some point the value of your car makes it not worth it to pay for physical damage. You should do some research to find the current value of your car. Your agent will then tell you how much physical coverage is and help you determine if it makes sense to have it. 

  • Think about the deductibles you will choose. It usually depends on how much you feel comfortable paying in the event of a claim. Also, makes sure to ask your agent the premiums for different deductibles. It might make sense to increase or decrease the deductible depending on the premium difference.

Miller and Cornell Inc.

PO Box A

112 S. York Rd

Hatboro, PA 19040