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Need Car Insurance

With all the different types of insurance products available in the State Pennsylvania; when do you need car insurance?  There are two primary reasons you may need auto insurance – the State and your Bank.  When you purchase and register an automobile in the State of Pennsylvania, both state law and the Pennsylvania Department of Motor Vehicle (PENDOT) outline you must maintain a minimum amount of financial responsibility.  You can accomplish this by purchasing an auto insurance policy with the states minimum required liability limits  or by setting up an escrow bank account and maintain a minimum deposit balance of $45,000.00.

The second reason you need to ask “Do you need car insurance is your Bank, Credit Union or Leasing Company.  When you Purchase or lease a car or truck and you finance the purchase through a lending institution, they will require you maintain auto insurance comprehensive and collision coverage.  Comprehensive and Collision Coverage through an auto insurance company will pay you to replace your car if it’s stolen or repair the damage when your car when it’s involved in an automobile accident.  In most cases, each one of these coverage’s will be subject to a “Deductible”.  A Deductible is an amount you
will pay toward the car insurance claim when you agree on your insurance premium.  The higher your deductible, the lower your premium will be.  If you are a safe driver and never have accidents, it would be in your financial best interest to maintain a higher deductible on your collision coverage.  Same is true for Comprehensive Coverage.  If you keep your car in a locked garage and take seldom trips to the city, a higher deductible may be in your best interest. Over a period of years, you will save more money. So the answer to the question “Do you need car insurance”  ( It depends on your automotive situation)