Many a times, a person might intend to change his or her auto insurance policy in Pennsylvania after finding a better one. A better one need not be a cheaper one for all practical purposes. It can be one that better caters to the needs of an individual at that particular time frame.
But there are a number of things that one needs to keep in mind while shifting policies in the state of Pennsylvania. You need to research and find out what these things are before going forward and making a change that you might regret later.
Firstly, when you are moving from one policy to another, you cannot have an interim period where you are uninsured. For one, if you do end up meeting with an accident during this period, you will regret making the move due to the fact that you have been paying your premiums for so long and all of a sudden you have suffered a loss when you were not insured. And then, the insurance company will send your data to the department of motor vehicles when you stop making payments and if you do not have another insurance policy during that period, the DMV can and will revoke you’re driving license from the state of Pennsylvania. If you do end up having a gap between your first insurance policy coverage and the second one, it is best to go for a gap insurance policy. Such policies charge premiums on a day to day basis and it will be much costlier but it is worth it all the same.
Secondly, you need to check whether you are covered up to and beyond, if required, the basic liability limits of the state of Pennsylvania. The basic liability limit for personal injuries in the state of Pennsylvania is $15000. And the liability limits for all the injuries sustained in an accident is $30000. And for all property damage, one will have to ensure a minimum of $5000 in this state. And this is the bare minimum; every body knows that this is not exactly sufficient to cater to all the needs of an individual who has met with an accident.
When you make a move from your current auto insurance company to a new provider, make sure that you are covered to the basic minimum at the least. There are many companies which try to swindle people out of their money by promising very low premiums while making cuts on the liability limits without their knowledge. Apart from all the above standard coverage’s, Pennsylvania state rules prescribe a personal injury protection. This is necessary to cover all the basic medical expenses for you and your passengers even if you do not have a fully comprehensive first party insurance policy.
Make sure you new provider has included this in your package. Many out of state companies will not be able to provide you this coverage because they may not be aware of the local laws in the state of Pennsylvania.
Lastly, you cannot just assume that your old insurance policy ceases to exist because you stopped making payments. There are certain companies which will require you to contact them by phone and then make a written intimation stating that you no longer seek their services. If you do not do so, and stop making payments without intimation, your credit history might end up suffering as a result.
