Car insurance claim rules in Pennsylvania

The clock on a Pennsylvania claim

Chapter 146 of Title 31 of the Pennsylvania Code, the Insurance Department's unfair claims settlement practices regulation, sets the timing. The acknowledgment rule covers every claim; the 15-working-day decision rule covers first-party claims, such as collision, comprehensive and first-party medical benefits.

Working days leave out weekends and holidays, so 15 working days is about three calendar weeks. The clock runs from a properly executed proof of loss: answer the insurer's requests fully and keep dated copies. If the insurer misses these deadlines, our page on claims that drag on shows how to ask for a decision in writing.

Section 146.7(e) also protects you if you have no lawyer. Before the time limit to sue runs out, an insurer still negotiating with you must warn you in writing at least 30 days ahead on a claim under your own policy, and at least 60 days ahead on a claim against another driver's insurer.

When a Pennsylvania car is a total loss

Pennsylvania's Vehicle Code, 75 Pa.C.S. §102, defines a salvage vehicle as one that can't run or can't meet the state's equipment and inspection standards, to the point that the cost of repairs would be more than the value of the repaired vehicle. In practice that is a 100% line, measured against what the car would be worth once fixed.

• No lower percentage in law. The insurer can still total a car below that line when repair cost plus salvage value approaches the car's value.
• Antique and classic cars that would qualify except for their lack of restoration or upkeep are left out of the salvage definition.
• The settlement is the actual cash value. What it should include is in our guide to total loss claims.

The total loss check applies a 100% threshold to your repair estimate and the car's value.

Reporting a Pennsylvania crash

Under 75 Pa.C.S. §3746, the driver must notify the nearest police department right away, by the quickest means, when a crash injures or kills anyone or damages a vehicle so that it can't be driven normally and has to be towed. Police investigate those crashes.

If an officer doesn't investigate a crash of that kind, Section 3747 makes each driver involved send a written report to the Pennsylvania Department of Transportation within five days. Keep a copy; your insurer will usually ask for it.

Choice no-fault, tort options and who pays

Pennsylvania is a choice no-fault state. Your own policy pays first-party benefits for medical bills whoever caused the crash; 75 Pa.C.S. §1711 requires at least $5,000 of medical benefits. Claims for car damage and for losses beyond your benefits go against the driver at fault.

• Full tort keeps an unrestricted right to sue the at-fault driver for economic losses and for pain and suffering.
• Limited tort keeps your right to recover economic losses, but you can't sue for pain and suffering unless the injury is serious or an exception applies, such as a drunk driver or a car registered in another state (§1705).
• Comparative fault: under 42 Pa.C.S. §7102 you can recover if your negligence is not greater than that of the drivers you sue, and your damages drop by your share. At 51% you recover nothing.

If you never returned the tort election form when it was offered, the law presumes you chose full tort. The choice is on your declarations page. For how first-party benefits work, see our page on PIP and MedPay claims.

Deadlines to sue and where to complain

Under 42 Pa.C.S. §5524, a lawsuit for injury to a person or damage to property caused by negligence generally has to be filed within two years of the crash. Settlement talks don't stop that clock.

1. Ask the insurer in writing for the reason for a denial or a low offer and the policy language it relies on.
2. Call the Pennsylvania Insurance Department consumer line at 1-877-881-6388.
3. File a complaint through the department's online help center if the insurer misses deadlines. Our guide to insurance department complaints shows what to include.

Questions people ask