(300+)The short answer: The primary types of car insurance coverage are bodily injury liability, property damage liability, first-party medical benefits (PIP), uninsured motorist, underinsured motorist, collision, comprehensive, extended first-party benefits, and optional add-ons. Pennsylvania only requires liability and first-party medical benefits, while New Jersey requires a standard or basic policy. Because the rules differ by state, drivers in southeastern Pennsylvania and southeastern New Jersey should know what each coverage really pays for.
Buying car insurance can feel like a guessing game. You pick numbers, hope they’re enough, and move on, until a car wreck happens and you learn the hard way what your policy really covers. Below, our experienced Philadelphia car accident lawyers break down the different types of car insurance. Remember, our consultations are free.
In this article, we discuss:
– What car insurance coverage do you need in Pennsylvania and New Jersey?
– What does liability coverage pay for?
– How do first-party medical benefits and the tort choice work?
– What are uninsured and underinsured motorist coverage?
– What’s the difference between collision and comprehensive coverage?
– What optional coverages are worth adding?
What Car Insurance Coverage Do I Need In Pennsylvania And New Jersey?
Pennsylvania law only requires that you purchase liability and first-party medical benefit coverages. New Jersey drivers can choose between a Basic Policy with lower limits and a Standard Policy with higher liability and personal injury protection. For plans issued or renewed on or after January 1, 2026, New Jersey’s Standard Policy requires bodily injury liability of at least $35,000 per person and $70,000 per accident, along with $25,000 for property damage. Meeting the minimum and truly protecting your family are two different things.
What Does Liability Coverage Pay For?
Liability coverage pays for harm you cause to other individuals, not your own injuries, and it splits into two coverages.
- Bodily injury liability covers the medical costs, lost income, and pain of individuals you injure. Pennsylvania requires the ability to respond to damages of $15,000 for injury to one person and $30,000 for injury to two or more persons in one accident.
- Property damage liability covers damage you cause to someone else’s car or property. Pennsylvania requires $5,000 for damage to the property of others in any one accident.
These minimums run out fast. One serious injury can exceed $15,000 in a single hospital stay, so many drivers buy higher limits.
How Do First-party Medical Benefits And The Tort Choice Work?
First-party medical benefits pay your own medical bills regardless of fault, and your tort choice decides whether you can also sue for pain and suffering.
- First-party medical benefits, or PIP, cover your medical bills no matter who caused the wreck. Pennsylvania requires a medical benefit of $5,000. That floor disappears fast, so we usually suggest more.
- Extended first-party benefits add income loss, accidental death, and funeral coverage. They’re optional, but they can carry your family through months of lost paychecks.
Then comes the big choice: limited tort or full tort. Limited tort limits your right and the rights of members of your household to seek financial compensation for injuries caused by other drivers, letting you recover medical and out-of-pocket expenses, but not pain and suffering unless your injury is a serious one. Full tort allows you to maintain an unrestricted right for yourself and other members of your household to seek financial compensation for injuries caused by other drivers, including for pain and suffering or other nonmonetary damages. The law defines a serious injury as a personal injury resulting in death, serious impairment of body function, or permanent serious disfigurement. Limited tort trims your premium, but it can cost you dearly after a bad crash. New Jersey offers a similar choice: a Limitation on Lawsuit or No Limitation on Lawsuit. If you aren’t sure which one you picked, call 215-274-0173 for a free consultation.
What Are Uninsured And Underinsured Motorist Coverage?
This coverage protects you when the other driver cannot.
- Uninsured motorist coverage protects you when the driver who hit you has no insurance.
- Underinsured motorist coverage steps in when the at-fault driver has some insurance, but not enough to cover your injuries.
Uninsured and underinsured motorist coverage is not mandatory in Pennsylvania, and you may elect to eliminate it to reduce your premium. We rarely recommend that. Too many drivers carry little or no insurance, and this coverage often makes the difference between a full recovery and an empty one.
What’s The Difference Between Collision And Comprehensive Coverage?
Collision covers crashes, comprehensive covers almost everything else, and both protect your own vehicle, which liability never does.
- Collision coverage pays to repair or replace your car after a crash, whether you hit another vehicle or a guardrail.
- Comprehensive coverage pays for damage that isn’t a collision, such as theft, fire, vandalism, storms, or hitting a deer.
Neither is required by law, but your lender will demand both if you finance or lease.
What Optional Coverages Are Worth Adding?
- Optional add-ons, such as rental reimbursement, towing and labor, and gap coverage, fill the smaller holes. Rental reimbursement keeps you moving while your car is in the shop, and gap coverage pays the difference if you owe more on your loan than your totaled car is worth. They cost a few dollars a month.
Frequently Asked Questions About Car Insurance Coverage
What car insurance coverage do I need at a minimum?
At a minimum, Pennsylvania drivers must carry liability coverage plus first-party medical benefits, and New Jersey drivers need at least a basic or standard policy. Those minimums keep you legal, but they rarely cover a serious car wreck.
Is Pennsylvania really a no-fault state?
Yes. Pennsylvania is a choice no-fault state, so your own PIP pays your medical bills first, no matter who caused the crash. Your tort choice then decides whether you can also sue for pain and suffering.
How long do I have to file a claim after a car wreck?
In Pennsylvania, you generally have two years. Pennsylvania’s personal injury statute of limitations is two years under 42 Pa. C.S.A. § 5524(7), which covers actions to recover damages for injury to person or property founded on negligent, intentional, or otherwise tortious conduct. New Jersey also imposes a two-year statute of limitations for most injury claims. Don’t wait because evidence fades fast.
What does it cost to talk to a lawyer?
Nothing up front. We offer free consultations and work on a contingency fee, meaning you don’t pay us unless we recover money for you.
Got Hurt? Get Gibbons!
Insurance companies know their policies inside and out, and they count on you not knowing yours. Our experienced attorneys at Gibbons Legal, Personal Injury & Accident Lawyers handle car wrecks, slip and falls, and personal injury claims across southeastern Pennsylvania and southeastern New Jersey. We’ll review your coverage, explain your options in plain English, and take on the insurance company.
Got hurt? Get Gibbons! Call 215-274-0173 for a free consultation, or stop by our office at One Commerce Square, 2005 Market Street, Philadelphia, PA 19103.
