PENN. AUTO TORT DIFFERENTIAL SET:

Pennsylvania drivers who choose the limited tort system are entitled to save up to 40 percent off their bodily injury, first party benefits and uninsured/underinsured motorist coverage, according to state officials. The Pennsylvania Insurance Department, analyzing the effects of reforms enacted in 1990, recently determined that additional savings should be applied to the full tort and limited tort choice system, and that those savings should be made available to limited tort selectors. Most recently, a minimum 15.3 percent savings between the full and limited tort rates was what policyholders would realize as a result of selecting the limited tort option. But the department’s latest findings show that the savings between the full and limited tort selectors should be adjusted to approximately 40 percent for bodily injury, first party benefits, and uninsured/underinsured motorist coverage. To implement this, all private passenger auto insurance writers in Pennsylvania were required to submit new rate filings applying the limited tort differential on a coverage-by-coverage basis. The new tort differentials go into effect at the next renewal cycle.

Topics Auto Pennsylvania