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Insurance Law Overview in Pennsylvania

  • Legal Requirement: Pennsylvania law mandates that all motor vehicle owners must maintain liability insurance on registered vehicles.
      - Purpose of Liability Insurance: This insurance covers property damage and injuries caused to others in an accident.

  • Consequences of Lapse in Insurance Coverage:
      - Suspension of Vehicle Registration:
        - A lapse in coverage results in a 3-month suspension of vehicle registration privileges.
        - Exception: If the lapse is for less than 31 days and the owner proves that the vehicle was not operated during this short period, no suspension occurs.
      - Surrender Requirements: The vehicle owner must surrender the registration plate, card, and driver's license (if applicable) to PennDOT to serve the suspension.
      - Restoration Requirements:
        - To restore registration and/or driving privilege, a restoration fee and proof of insurance must be submitted.
        - Option to pay a civil penalty instead of serving a suspension.

  • Civil Penalty Option:
      - Amount: The civil penalty is $500.
      - Additional Fees: Restoration fee in line with Section 1960 of the Vehicle Code must be paid too.
      - Eligibility: This option can only be utilized once in a 12-month period.
      - Process for Payment:
        - Visit PennDOT’s website or complete Form MV-222 with a certified check or money order.
        - Payments for civil penalties should be mailed to:
          - PennDOT, Financial Responsibility Section, P.O. Box 68674, Harrisburg, PA 17106-8674.

  • Insurance Cancellation Procedure:
      - Insurance Company’s Duty: Insurers must notify PennDOT whenever a policy is canceled but are NOT required to notify when a new policy is acquired.
      - Owner’s Responsibility: Vehicle owners must inform PennDOT after receiving a letter of inquiry regarding new insurance.
        - Failing to respond results in registration suspension.
      - Returning Registration Plates:
        - Registration plates and cards must be surrendered within 30 days after insurance cancellation to avoid suspension.
          - Late submissions (after 30 days) lead to the 3-month registration suspension.

  • Motor Vehicles Covered by Law:
      - All registered motor vehicles, including:
        - Cars, vans, motorcycles, recreational vehicles, trucks, and buses.
      - Required Coverage Amounts:
        - 15,00015,000 for injury or death of one person in an accident.
        - 30,00030,000 for injury or death of multiple persons in an accident.
        - 5,0005,000 for damage to property of another person.

Insurance Identification and Consequences of Uninsured Driving

  • Insurance Identification Card: Given by insurance company, valid for the coverage period paid for.

  • Penalties for Driving Without Insurance:
      - Fines and Fees:
        - Minimum fine of $300 for driving uninsured.
        - Suspensions:
          - Three-month suspension of vehicle registration.
          - Three-month suspension of driver's license.
      - Additional Fees:
          - Restoration fees for registration and licenses.
          - Vehicle must not be driven while registration is suspended.

  • Determining Insurance Status Without Insurance:
      1. Traffic Violation Stops: Police may request a valid insurance I.D. card. Failure to present it leads to citation and 3-month suspensions.
      2. Insurance Verification:
         - Information on vehicle registration applications may be confirmed with insurance companies.
         - Lack of confirmation results in a 3-month registration suspension.
      3. Notification by Insurance Companies:
         - Insurers must inform PennDOT about policy cancellations. Failure by the owner to provide new insurance information leads to suspension.
      4. Vehicle Inspection Requirement:
         - Vehicles must have proof of insurance before inspection. Failure might result in denial of the inspection certificate and notification to PennDOT.

Proof of Insurance Requirements

  • Initial Registration Proof Requirement:
      - Proof of financial responsibility must be provided at the time of vehicle registration.
      - Registration renewal or transfer refused if self-certification of financial responsibility is incomplete:
        1. Name of the insurance company.
        2. Policy number, effective date, and expiration date of the insurance policy.

  • Acceptable Forms of Proof of Insurance:
       1. Copy of insurance identification card.
       2. Copy of the declaration page of an insurance policy.
       3. Application for insurance to the Pennsylvania Assigned Risk Plan signed by a licensed agent/broker.
       4. Certificate of self-insurance issued by PennDOT.
       5. Valid binder of insurance from a licensed insurance company.
       6. Letter from the insurance carrier on official letterhead verifying financial responsibility.

Lapse in Insurance and Affidavit Effects

  • Affidavit Submission:
      - Submitting an affidavit stating the vehicle was not operated during the lapse can exempt from 3-month suspension only if insurance coverage was obtained in less than 31 days after the lapse began.
      - Grace Period: The grace period starts from the date of insurance cancellation, not from the date of PennDOT’s notice.
      - Consumer Support: For further information, visit PennDOT’s website or contact the Customer Care Center or send mail to the Financial Responsibility Section.