State Auto Insurance Requirements and Responsibilities
Learn about the crucial responsibilities of owning and insuring a vehicle, including state insurance requirements, penalties for driving without insurance, and how to show proof of financial responsibility. Explore topics such as car insurance costs, purchasing a vehicle, and the types of coverage needed for state auto insurance.
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Presentation Transcript
Driver Responsibilities: Making Informed Choices Topic 1 Insuring Vehicle Topic 2 Purchasing Vehicle 3/18/2025 1
Ownership Responsibilities Insurance Costs Purchase and Financing Costs Maintenance and Operating Costs Registration and Inspection Costs 3/18/2025 2
Insuring a Car State law requires you to have car insurance If you still owe money on your car, you lender can require insurance 3/18/2025 3
Safety Responsibility Law Minimum liability coverage Alternatives to insurance Types of proof of financial responsibility When you must show proof of financial responsibility Penalties for driving without insurance 3/18/2025 4
State Auto Insurance Required Minimum Liability Coverage $20.000 per injured person Up to $40,000 for everyone hurt in an accident $15,000 for property damage 3/18/2025 5
State Auto Insurance You must show Proof of Financial Responsibility when you: Are asked for it by a police officer Have a collision Register your vehicle or renew its plates Obtain or renew a driver license Get your car inspected 3/18/2025 6
State Auto Insurance Penalties for Driving without Proof of Insurance First Conviction $175 to $350 fine Subsequent Convictions $350 to $1,000 fine Driver s license suspension Impoundment of your car 3/18/2025 7
State Auto Insurance Declaration Page of Your Policy The exact mane of your insurance company The policy number Your coverages and how much they cost Your deductibles, if any The vehicle insured on the policy, their vehicle identification number(s) (VIN) and their classification for rating purposes 3/18/2025 8
State Personal Auto Policy Eight types of coverage Liability Medical payments Personal Injury Protection Uninsured/Underinsured Motorist Collision Comprehensive Towing & Labor Rental reimbursement 3/18/2025 9
Liability Coverage Pays: Other people s medical expenses Auto repairs Attorney fees Bail to $250 Covers: You Your family Others driving with your permission Required? Yes, by State Law 3/18/2025 10
Medical Payment Coverage Pays: Medical Funeral expenses Covers: You Your family Your passengers Required? Not required by state law 3/18/2025 11
Personal Injury Protection (PIP) Coverage Pays: Medical expenses Funeral expenses Lost wages Homemaker/caregiver services Covers: You Your family Your passengers Required? Not by State Law, but company must offer 3/18/2025 12
Uninsured/Underinsured Motorist (UM/UIM) Coverage Pays: Medical expenses Funeral expenses Car repairs Car rental Replacement of damaged contents Covers: You Your family Your passengers Required? Not by State Law, but company must offer 3/18/2025 13
Collision Coverage Pays: Your car repair Your car replacement After a crash Covers: Your car Regardless of driver Required? Not by State Law, but by car loan lenders 3/18/2025 14
Comprehensive Coverage Pays: Car repair or replacement after Fire Hailstorm Theft or other non-collision event Rental car after theft Covers: Your car Required? Not by State Law, but by car loan lendeers 3/18/2025 15
Towing & Labor Coverage Pays: Towing Labor charges When your car is disabled Covers: Your car Required? Not required by State Law 3/18/2025 16
Rental Reimbursement Coverage Pays: A rental car Your car is undergoing repair For covered damage Covers: You Your family members Required? Not required by State Law 3/18/2025 17
Insurance Costs How car rates are determined Factors used in establishing rates Discounts Mandatory Non-mandatory 3/18/2025 18
Insurance Costs Factors used to determine your premium Your age and marital status Highest rates Male drivers under 25 Unmarried women under 21 Over 50 may get a discount County where you keep your car Urban counties have more accidents and auto thefts; tending to be higher than those of rural areas Your car Collision and comprehensive rates Highest for luxury, high-performance, and sports cars Higher for cars that damage easily Higher for cars that cost more to repair How you use your car Higher for cars driven to work or used for business 3/18/2025 19
Insurance Costs Factors used to determine your individual premium Your deductibles Your share of the cost of a collision or comprehensive claim Reduce your premium by raising your deductibles Surcharges Added for collisions resulting in property damage of $1,000 or more Discounts Some required by the state, while others are optional with companies Mutuals are not required to give any discounts 3/18/2025 20
Premium Discounts Education and Car Equipment Savings Defensive driving and driver education courses for young drivers Auto Insurance Discounts Savings 10 % off Liability, Collision Medical Payments, and PIP Airbags and other passive restraints 15% off Medical Payments and PIP (driver s side) 30% off Medical payments and PIP (both sides) Drug/alcohol education 5% off Liability, Collision, medical payments and PIP Anti Theft Devices Reduces Comprehensive premium; amount varies by device and county Two or more cars on policy 20% off Liability, medical Payments, and PIP 15% off Collision 3/18/2025 21
Premium Discounts Companies may give optional discounts for: Your age and annual mileage driven Policy renewal, with a good claim and driving record Anti-lock brakes A parent or family whose young driver is away at school without a car Full-time college and high school students with a B or 3.0 average Cars with automatic daytime running lights Membership or adult leadership in certain youth organizations 3/18/2025 22
High Risk Drivers Each company has its own rules Called underwriting guidelines For deciding whether to insure people Makes it harder to get car insurance Must pay higher premiums Insurance for high risk drivers Surcharges 3/18/2025 23
High Risk Drivers Your Driving Record Will Cost You Accident or Violation Surcharge* (Premium Cost will increase by) One collision (at-fault) in 36 months 15% Two collisions 35% Three collisions 60% Each moving violation (speeding etc.) 0% Involuntary manslaughter 60% Driving Under the Influence 60% Criminally negligent driving 60% No license or license suspension 35% 3/18/2025 24
Paying for Insurance Many people can not pay their car insurance premium in one installment Insurance companies must offer installment plans Agents and insurers use finance companies Lend money at high interest rates to pay insurance premiums Look for insurance companies that offer their own installment plans 3/18/2025 25
Paying for Insurance Ask the agent: Who will provide my installment plan? The insurance company or a premium finance company If it is a premium finance company, what is the interest rate? How much is the down payment? How much is my monthly payment? How many payments do I make? How much is my total payment? Annual or sic-month premium plus interest 3/18/2025 26
Paying for Insurance Use a worksheet to compare the installment packages offered by agents and companies INSTALLMENT PLAN WORKSHEET Agent or Company Names Interest Rate, if any Down Payment Monthly Payment Number of Months Total you pay ______________ ______________ ______________ ______________ ______________ ______________ ______________ ______________ ______________ ______________ ______________ ______________ 3/18/2025 27
Losing Your Insurance Cancellation First 60 days, company can cancel for any reason, including a ticket or collision After policy is in effect more than 60 days, for the following reasons: Company must give 10 days notice before canceling Refund of unearned premium Non-renewal Company will not develop a new contract Request Reasons in Writing Why company canceled policy Why company will not renew the policy 3/18/2025 28
After a Collision What now? Discuss what your policy requires you to do after a collision Your uninsured motorist coverage pays for hit- and-run collisions only if reported to the police 3/18/2025 29
Buying a Car New or Used? What Do I need it To Do? What Safety Features Are needed? How Much will it Cost? How Economical is it? What Options Do I Need? 3/18/2025 30
Your Monthly Payment Price Formula Vehicle Price Purchase Price x Interest Rate x Length of Finance Purchase Price - Interest Rate - Length of Finance - Purchase Price + Interest + Sales Taxes = Total Price over $16,000.00 $12,000 7 percent 48 months What is a Monthly Payment? 3/18/2025 31
Next Sessions Classroom Trip planning Getting your Pennsylvania License Highway Transportation System In-Car Lesson Assessments Traction Control Range Sessions Planning 3/18/2025 32
Contact/Mission For more information on the (the topic of the presentation) please visit PDE s website at www.education.pa.gov The mission of the Department of Education is to ensure that every learner has access to a world-class education system that academically prepares children and adults to succeed as productive citizens. Further, the Department seeks to establish a culture that is committed to improving opportunities throughout the commonwealth by ensuring that technical support, resources, and optimal learning environments are available for all students, whether children or adults. 3/18/2025 33
