1. How are auto insurance rates calculated?
2. How can I save money on my car insurance?
3. I was involved in an automobile accident,  What do I do?
4. How long does the company have to respond?
5. What if their insured won't file a claim?
6. Their insured was cited by the police. Why do they have to investigate?
7. I have "full coverage."  Why won't my company pay?
8. Do they owe me a rental car, and for how long?
9. Can I take my car wherever I want to have it fixed?
10. What if the estimates don't match?
11. Can they use non-brand name parts or used parts?
12. I don't want it fixed right now,  Can they pay me the repair amount?
13. They've declared my vehicle a total loss but won't pay me enough to replace it. Is this legal?
14. I've spent a lot of time and phone calls dealing with this. Can I charge them for my time and costs?
15. My automobile policy was canceled because I did not pay my premium on time. Is this legal?
16. Can my insurance company cancel my auto insurance policy if I am found guilty of drunk driving?
17. What should I do if I receive a cancellation or nonrenewal notice from my insurance company?
18. What is a surcharge?
19. What protection do I have against unreasonable surcharges or policy terminations?
20. Can I exclude my spouse or teenager from my insurance policy to lower my premium or avoid being canceled?
21. How much is my insurance company required to pay me if my car is damaged?
22. Is it legal for my insurance company to nonrenew my auto insurance because I have too many claims?
23. I don't understand all the terms in my policy. What should I do?
24. What could cause my premiums to increase?
25. How can I lower my auto insurance premium?
26. What are the risks of changing insurance companies?
27. Why do companies charge different rates for different geographical areas?

13. They've declared my vehicle a total loss but won't pay me enough to replace it.  Is that legal?
The company owes you the fair market value of your vehicle (before the accident) in your local area. You can determine this amount by using dealer quotes and/or newspaper adds or other auto sales publications, as long as the vehicle being sold is comparable to yours in mileage, condition, options, etc. In addition they will pay you sales tax on the value of your vehicle, and pay the unused portion of your registration fees.  You may have the option of purchasing your damaged vehicle as salvage, and paying the company the amount they would get if they sold it to a wrecker. If you would like more information see our fact sheet "Automobile Total Loss".

14. I've spent a lot of time and phone calls dealing with this. Can I charge them for my time and costs?
A property damage claim includes the cost to repair or replace the vehicle and compensation for loss of use of that vehicle. Insurance policies define this property damage as to amount they will pay on behalf of their insured.  There is not doubt that any accident is an inconvenience for everyone involved, however, the insured person's policy probably won't compensate you for time or lost wages under a property damage claim. Currently there is no law or case law that addresses this issue.  This matter is often settled through Small Claims Court.

For additional information you may want to review Washington Administrative Code 284-30, the Unfair Claims Settlement Practices Act.

If you have questions feel free to call our toll-free information number 1-800-562-6900.

15. My automobile policy was canceled because I did not pay my premium on time. Is this legal?
Pennsylvania law does not require companies to extend a grace period for premium payments. If payment is not received by your due date, the company is permitted to cancel for nonpayment of the premium.

16. 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 a cancellation or nonrenewal.

17. What should I do if I receive a cancellation or nonrenewal notice from my insurance company?
First, contact your agent or your insurance company for specific details regarding the action. Pennsylvania law allows companies to cancel or nonrenew 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. The statement must be received by the Insurance Department within 30 days of your receipt of the notice.

18. What is a surcharge?
A surcharge is an additional premium charge, for a limited number of years, as a result of violations, suspensions or accidents on the driving record of any driver covered under your policy.

19. What protection do I have against unreasonable surcharges or policy terminations?
Motorists in Pennsylvania may no longer be surcharged or have their policy nonrenewed if the claim(s) resulting from the accident(s) in the preceding three years do not add to more than $1050 after payment of any deductible, or if the insurance company is reimbursed for at least 60 percent of the total amount of the paid claim.

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Last modified on Sept 28, 2003||Partners||As we partner with additional resources, this site will continue to progress