In my practice, I find that it is common for my clients to have only a limited understanding of what their automobile insurance covers until they have actually been involved in an accident.  Frequently, my clients are not happy about their coverage but, by then, it’s too late to help them because the accident has already happened.

My goal in this four part series is to provide a brief explanation of automobile coverage to assist consumers with the important process of selecting proper coverage.  In the first part, I explained Liability Coverage.  In this part, I deal with First Party Coverage.

In Pennsylvania, there are several types of coverage that protect you regardless of who is at fault for an accident.  This coverage, called First Party Coverage, covers medical bills, lost wages, accidental death and funeral expenses arising out of accidents involving automobiles.

Pennsylvania law requires you to carry at least $5,000 per person of medical coverage.  In the event that you are injured in an accident, your policy will cover your medical treatment, regarless of who was at fault for the accident.  Although the minimum required coverage is $5,000, coverage in excess of that amount can be purchased and is relatively inexpensive.  With automobile insurance, unlike health insurance, there are no deductibles or co-pays for medical treatment. 

Since it is easy to foresee that an accident could result in injuries requiring more that $5,000 worth of medical treatment, it is advisable to consider having more than minimal coverage, particularly if you have no health insurance or high deductibles or co-pays in your plan.

First Party wage loss coverage is not mandatory, but can be purchased.  Lost wage coverage often pays 80 percent of lost gross income up to a maximum monthly amount and maximum benefit amount.  Purchasing lost wage coverage is prudent, particularly if you have no other short or long term disability coverage.

Accidental death and funeral benefits again, while not mandatory, are other types of coverage worth considering when purchasing automobile insurance.  Like other First Party Coverage, they are paid regardless of who is responsible for an accident.  Accidental death and funeral coverage can be very helpful, especially if you have little or no life insurance.

Tim Rayne, Esquire - MacElree Harvey, Ltd. 211 E. State Street, Kennett Square, PA 19348   (610) 840-0124   trayne@macelree.com

This entry was posted on Wednesday, February 20th, 2008 at 2:54 pm and is filed under Auto Insurance Law. You can subscribe via RSS 2.0 feed to this post's comments. You can comment below, or link to this permanent URL from your own site. Your comments will appear immediately, but I reserve the right to delete innapropriate comments.