Auto Insurance Legislation Emphasizes Value of Higher Coverage Levels

PHILADELPHIA, Sept. 15 /PRNewswire/ -- Legislation recently introduced to the Pennsylvania State Legislature calls attention to the need for auto insurance consumers to consider purchasing coverage that goes beyond state-required minimum levels. The legislation, which was introduced at the start of September, would double the state's minimum requirements for liability coverage. Though a policy may meet the levels set by a state government, that doesn't mean it will sufficiently cover all expenses that may arise from a traffic accident. OnlineAutoInsurance.com recommends that consumers understand their state minimum-coverage requirements and research how much it would cost to get enhanced protection.

In its consumer guide to auto insurance, the National Association of Insurance Commissioners (NAIC) states that minimum coverage levels set by states are "generally low" and that levels of coverage usually can be raised with minimal cost to the policyholder. To find out just how much more it would cost to get increased liability levels, consumers can visit a website offers a free car insurance comparison to visitors. This enables consumers to run their information through multiple coverage scenarios — various levels of coverage, different deductible amounts, etc. — and weigh the costs and benefits.

But, before going to these websites to compare scenarios, consumers need to know how to interpret that information. Pennsylvania's minimum required liability limits, for example, are currently set at 15/30/5. This is the shorthand way of saying a policy with such limits may — depending on the specifics of a claim — cover expenses caused by an insured of up to $15,000 for the injury of one person in an accident, $30,000 for the injury of two or more people in one accident and $5,000 for property damage from one accident. If passed, the proposed bill would raise the Pennsylvania minimums to 30/60/10, respectively.

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Although that may sound like a lot of coverage, Pennsylvania ranks pretty low relative to other state-set requirements. For example, Wisconsin last year raised its minimums from 25/50/10 up to 50/100/15.

But the Pennsylvania bill's introduction to the state legislature does not necessarily mean the proposed higher insurance minimums will take effect any time soon. Similar bills have stalled in other state legislatures; there have been previous attempts to raise minimum levels of coverage in Ohio — which has the lowest bodily injury liability coverage required by any state — and there has been no action taken yet on a bill submitted to their state legislature in early 2009 that would double that state's minimum levels of coverage.

To comparison shop based on a particular state's minimum coverage levels and to see how much it would cost for varying levels of auto insurance coverage, consumers can visit http://www.onlineautoinsurance.com/compare/ and obtain free quotes and personally tailored premium estimates from a variety of reputable carriers.  

SOURCE Online Auto Insurance, LLC