Pennsylvania Auto Insurance Average Annual Costs, Minimum Requirements

A valid Pennsylvania auto insurance policy is required for every driver, or you have the option of choosing to self-insure your vehicles. This is a popular option for companies with fleet vehicles because after a certain amount of vehicles this is the less expensive option.

Pennsylvania requires their drivers to either maintain:

  • $15,000 bodily injury for one person
  • $30,000 bodily injury per accident
  • $5,000 in property damage; or

Alternatively, motorists are permitted to have the following concerning self-insurance:

  • Completed the Master Self Insurance and Security Agreement,
  • Show proof of income and your bank balance statement,
  • Provide a security deposit of $50k for the first vehicle and $10k for each additional vehicle payable in cash, cashiers check or bond.

Pennsylvania does not currently maintain a database accessible by insurance companies so that they can be updated on your insurance situation. As such, proof of insurance must be brought when you register your vehicle and must be provided on demand while driving.

The Pennsylvania Department of Transportation (PennDOT) has a point system for their drivers. Every infraction that you get while driving will result in points being put on your driver's license. Every six points results in certain consequences, including an increase in your Pennsylvania auto insurance rates. However, driving without insurance does not lead to points being taken from your license.

Instead, PennDOT has a very heavy fine system to deter uninsured drivers.

  • $300 minimum fine (increases with each infraction)
  • Three month driver's license and car registration suspension
  • $50 registration reinstatement fee
  • $50 driver's license reinstatement fee

Pennsylvania auto insurance costs average $2,124 per year, which is $317 higher than the national average and a whopping 21% higher than the same time last year in our state. Saving money on auto insurance is an important issue for everyone and by not letting your insurance lapse, you will receive lower insurance rates (insurance companies want you to carry insurance for 6 months or longer). Checking car insurance rate quotes is another way to save money on your car insurance.

Safe driving in states like Pennsylvania is very important for maintaining an affordable car insurance rate. With a point system that affects your auto insurance rates (and can label you as an unsafe diver), driving safely is even more important than you can imagine. If you do incur points, you can improve your driving record by taking a defensive driving or other type of course to erase a minor citation. If you have six or more points, you can remove two of them by taking and passing the required safety exam.

Pennsylvania is a state that does allow you to drop or suspend your auto insurance if you show proof that your vehicle is not being driven or you turn in your license plate. If you receive a notice to provide proof of insurance and you do not comply with proof of not driving or with your license plates, you will have your license and registration suspended until you purchase Pennsylvania auto insurance coverage, or meet the other requirements listed here. You will also have to pay the reinstatement fees for your driver's license and registration as well.

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Pennsylvania auto insurance rates rose 21% during the past 12 months - making the average annual premiums amount to $2124.

By providing valid proof of alternative financial responsibility, you are permitted to not carry a policy for Pennsylvania auto insurance.

Heavy fines are used as deterrents for driving without Pennsylvania auto insurance.

Check additional valuable information of your State Insurance department organization.
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