How Car Accident Compensation Works in Pennsylvania

Pennsylvania is a “choice no-fault" state for car accidents. In most cases, you will file a claim with your own insurance provider no matter who was at fault in the crash. The policy will have “full” or “limited” tort insurance, depending on what you chose to purchase. In certain situations, the type of policy you have will affect your right to seek compensation.

Pennsylvania uses a “modified comparative fault” rule when determining injury compensation. Fault is divided among all those involved in the crash. Compensation is reduced by a person’s percentage contribution to the crash. For example, if someone is 20 percent at fault, and they have $100,000 in damages, their compensation would be reduced by 20 percent to $80,000. If you are 51 percent or more at fault in an accident, you cannot file a claim to recover damages in Pennsylvania. 

The insurance companies know that the more they blame victims for an accident, the less they must pay. A lawyer can fight back and make sure the ones who caused the crash are held responsible. 

Every state has its own car insurance requirements. At minimum, Pennsylvania requires drivers to carry a 15/30/5 liability insurance plan - $15,000 per injured person per crash, $30,000 total per crash, and $5,000 for property damage. Drivers also must purchase at least $5,000 in Personal Injury Protection (PIP). Here is more information about Pennsylvania’s car insurance requirements.

• Bodily Injury (BI) pays for injuries to others in a crash you caused. Minimum coverage is $15,000 per person per accident with up to $30,000 total per crash. 
• Property Damage (PD) pays for property damage caused to others in a car accident that is your fault.
• Personal Injury Protection (PIP) pays for medical expenses for you and others who are covered by your policy regardless of fault. Minimum coverage is $5,000.

Including:  

• Uninsured Motorist (UM) pays for your injuries and property damage if you are involved in an accident caused by an uninsured driver. 
• Underinsured Motorist (UIM) pays for injury and property damage expenses you have incurred, through an accident someone else caused, that are in excess of the at-fault driver’s policy limits.   
• Stacking UM or UIM allows you to multiply the amount of UM or UIM by the number of vehicles on your policy or to receive UM or UIM coverage from more than one policy under which you are insured.
• Extraordinary Medical Benefits pay for medical and rehabilitation expenses that exceed $100,000. The maximum coverage is up to $1 million.
• Income Loss pays for a portion of your lost wages if injuries from a car accident prevent you from working.
• Collision pays to repair physical damage or replace your vehicle after an accident. Most lenders require you to carry collision coverage if you have a car loan.     
• Comprehensive pays for physical damage to your vehicle that occurred due to things other than a collision like accidents involving animals, fires, or theft.
• Rental Reimbursement pays for a limited amount of vehicle rental and transportation expenses while the damaged vehicle is being repaired.      
• Gap (Loan/lease Payoff) helps pay for the difference between your vehicle’s value and how much you still owe on it after a crash.    
• Towing (Roadside Assistance) pays for costs, usually up to a specific limit, if your vehicle becomes disabled on the side of the road, aka towing and labor coverage.  
• Funeral Benefits pay up to a specific amount toward funeral expenses for you or family members should they die in a car accident. 
• Accident Death Benefits are paid to the personal representative of an insured person if damage from a car accident results in a death within 24 months of the crash.  

The amount of available insurance is one of the most important factors to determine the value of an injury claim. An experienced Pennsylvania car accident attorney can investigate, examine policy documents, identify the types of coverage that apply to your injuries, and negotiate aggressively to maximize your compensation.

It depends. Injured car accident victims have a right to compensation in Pennsylvania, but the type of insurance you purchase, among other circumstances, can affect your ability to file a successful lawsuit. 

When purchasing insurance, Pennsylvania drivers must choose whether to buy a "limited” or “full tort” plan. Basically, limited coverage is less expensive than full coverage, but it restricts the types of damages you can claim after a crash. Drivers with limited coverage plans, for example, are not entitled to collect pain and suffering damages unless their injuries meet the state’s standard for a “serious injury.” Pennsylvania defines serious injuries as injuries that cause “death, serious impairment of body function, or permanent serious disfigurement.” Drivers with full coverage have mostly unrestricted right to collect damages.

Whichever policy you choose, you always have the right to sue for economic damages like medical bills and lost wages. Most car accident claims are settled without having to file a lawsuit. However, there are situations in which a car accident lawsuit should be considered:  

• Damages exceed policy limits. Injured car accident victims can may be eligible to sue the at-fault driver and/or liable insurance providers if their expenses and losses exceed maximum policy limits.   
• Negotiations have broken down. If the insurance company won’t make you a substantial settlement offer, your attorney can file a lawsuit that demands the compensation you deserve.  

In general, you have 2 years from the date of your accident to file a car accident injury claim or lawsuit. That may seem like a long time, but important evidence like dash cam recordings of the accident or a witness’ memory of the event can disappear quickly. On average, the sooner a lawyer starts working on your case, the stronger your claim will be.

Compensation is typically based on the type and severity of the crash injury, the victim’s wages, and fault. Damages generally fall into one of two categories:

• Economic damages are losses with pre-set values like medical bills, lost wages, diminished earning potential, transportation to medical appointments, physical therapy, and out-of-pocket injury-related expenses. 
• Non-economic damages are losses that are more difficult to put a price on like pain and suffering, mental anguish, loss of enjoyment in life, loss of guidance, and embarrassment. 

In rare cases where the at-fault driver has demonstrated outrageous recklessness a court may award punitive damages on top of a victim's economic and non-economic damages. Punitive damages are intended to punish the at-fault party and discourage similar behavior in the community. 

An experienced Pennsylvania car accident lawyer can help you identify liable parties and hold them accountable for the damages and pain they have caused you. Lawyers investigate crashes, collect evidence, and hammer away at insurance companies until they get results. 

What if the other driver doesn’t have insurance?

Pennsylvania has a no-fault car insurance system. Therefore, you will almost always file a claim with your insurance provider after a crash, regardless of the other driver’s coverage or fault. Drivers are required to purchase PIP insurance, which pays for medical expenses regardless of fault. If you purchased them, your UM benefits would be available, too. UM can also be applied to hit-and-run accidents in which the driver is never found. 

If you do not have UM or UIM insurance, and your damages exceed your PIP and any other insurance resources, you may be able to file a lawsuit against the uninsured, at-fault driver. However, this may not be a productive move. If the uninsured driver doesn’t have significant personal assets, even if you win your case, you could wind up with very little compensation. 

An experienced Pennsylvania car accident lawyer can identify all liable parties and resources for compensation. They can file the proper documents and build strong cases that demand maximum compensation. Car accident lawyers typically work for a contingency fee. That means there is no out-of-pocket expense for their services.  And they only get paid when they win. If you were injured in a Pennsylvania car accident, contact a lawyer today for a free case consultation.