Frequently Asked Questions

Below are some of our frequently asked questions.  If you have any other questions or concerns, please feel free to contact us via the web, or come and visit us at a location near you.

1.	My automobile policy was canceled because I did not pay my premium on time. Is this legal?
2.	Can my insurance company cancel my auto insurance policy if I am found guilty of drunk driving?
3.	What should I do if I receive a cancellation or non-renewal notice from my insurance company?
4.	Can I exclude my spouse or teenager from my insurance policy to lower my premium or avoid being canceled?
5.	How much is my insurance company required to pay me if my car is damaged?
6.	Is it legal for my insurance company to non-renew my auto insurance because I have too many claims?
7.	What could cause my premiums to increase?
8.	How can I lower my auto insurance premium?
9.	Why do companies charge different rates for different geographical areas?
10.	What is the difference between limited and full tort coverage?
11.	Can PennDOT suspend my vehicle registration if I don’t have automobile insurance?

	My automobile policy was canceled because I did not pay my premium on time. Is this legal? Yes. If your insurance company does not receive your premium payment by the due date, the company is permitted to cancel your policy for non payment. Pennsylvania law does not require companies to extend a grace period for premium payments. Back to Top
	Can my insurance company cancel my auto insurance policy if I am found guilty of drunk driving? Yes. In Pennsylvania, if you are convicted of driving under the influence, whether or not you take the Accelerated Rehabilitation Disposition Program (ARD), your driver’s license will be suspended. A license suspension is a valid reason for cancellation or non-renewal of your insurance policy. Back to Top
	What should I do if I receive a cancellation or non-renewal notice from my insurance company? First, contact your insurance producer (agent) or company for specificdetails. Pennsylvania law allows companies to cancel or non-renew policies for certain reasons. If you still are not satisfied with your company’s explanation, submit a statement detailing the reasons you disagree with the action to the Pennsylvania Insurance Department. In order to preserve your appeal rights, the statement must be received by the Insurance Department within 30 days of the company’s mailing of the notice.  Back to Top
	Can I exclude my spouse or teenager from my insurance policy to lower my premium or avoid being canceled? Yes. The FIRST NAMED insured may exclude any family member from the policy, provided that the person being excluded can prove he or she has auto insurance with another company or the Assigned Risk Plan. Back to Top
	How much is my insurance company required to pay me if my car is damaged? Your insurance company is required to pay the amount necessary to return the motor vehicle to its same condition just prior to the damage in question. At your request, you may obtain information from the insurance company regarding repair facilities within a reasonable distance of where the motor vehicle is located - and where work will be performed - in accordance with the written appraisal. You are not required to use any specific repair shop. Back to Top
	Is it legal for my insurance company to non-renew my auto insurance because I have too many claims? An insurance company may non-renew a policy for two or more accidents of certain types within 36 months, when the amount paid in claims for both accidents exceeds the current threshold amount after the insured pays any applicable deductible. Back to Top
	What could cause my premiums to increase? Various factors can change the cost of your auto premium, including adding or increasing coverages, adding another vehicle to the policy, replacing an older vehicle with a newer one, adding a new driver, changing the usage of the vehicle (driving to work, using for business purposes), claims, moving violations, increasing the number of miles per year and moving to another area. In addition, your company may have been granted a rate increase since your renewal. Some rate increases are not due to a specific incident or condition of your policy but rather, are applied to all policyholders with the company. Specific questions on rate increases should be directed to your insurance producer (agent) or company. Back to Top
	How can I lower my auto insurance premium? You may save money on your auto insurance premium by choosing the limited tort option (which is explained in this guide; increasing your collision and comprehensive deductible, or dropping collision and comprehensive coverage on an older car not being financed; lowering or eliminating your uninsured (UM) and underinsured motorist (UIM) coverage; rejecting the stacking option of UM or UIM coverage; eliminating income loss or funeral benefits; lowering the medical benefits to the minimum limit requirement and inquiring about special discounts offered by your individual company. Prior to making your decision, make sure you understand the consequences of not purchasing the optional coverages, increasing your deductible or eliminating coverages. Back to Top
	Why do companies charge different rates for different geographical areas? One factor used in determining insurance rates is the geographical area in which an individual resides. Based on the company’s losses for that defined area, a company will determine premiums based on accident rates and repair costs for that area. Back to Top
	What is the difference between limited and full tort coverage? Full and Limited Tort are options that you can choose under your auto insurance policy as a result of the Pennsylvania motor vehicle financial responsibility law. Limited Tort allows you to save on your premiums by waiving your right to recover certain damages, such as payments for pain and suffering, unless the injuries you sustain in an automobile accident meet one of the exceptions as defined in Act 6 of Title 75, Section 1705 (d). Full Tort allows you to retain unrestricted rights to bring suit against the negligent party following an automobile accident. Back to Top
	Can PennDOT suspend my vehicle registration if I don’t have automobile insurance? The Department of Transportation can suspend your vehicle’s registration if you do not maintain the required insurance. Additionally, your driver’s license may be suspended if you operate the vehicle without the required insurance. Back to Top