About Pennsylvania Insurance Laws, Health Insurance and Regulations…
The Pennsylvania insurance industry is one of the strongest in the U.S. The states various insurance companies have managed to weather a multitude of regulatory changes over the many years they have been in business within Pennsylvania. These regulations are continuously enforced by the Pennsylvania Insurance Department. The agency is responsible for upholding both federal and state regulations and ensuring that residents are protected against malicious activities, such as fraud. The state’s regulations also ensure that insurance companies can operate freely as for-profit businesses.
Auto insurance is mandatory in Pennsylvania, just as it is in other states throughout the country. The Pennsylvania Insurance Department regulates the industry to ensure that rates do not exceed a consumer’s ability to pay for coverage. In an attempt to ensure that consumers can afford the coverage they need, the Virginia Insurance Department has established minimum requirements for drivers. Policies sold within the state must adhere to the minimum requirements in order to be considered valid, though consumers are free to purchase additional coverage if they desire.
The minimum coverage consumers may carry accounts for: $15,000 of coverage for an injury or death to one person in a single accident; $30,000 of coverage for injuries or deaths to more than one person in a single accident; and $5,000 of property damage insurance.
Personal injury protection (PIP) coverage is not required by the state. The average cost of auto insurance coverage in Pennsylvania is $1,658.
The Pennsylvania insurance industry is home to a strong property sector that has fared well despite the increasing frequency of natural disasters the state has seen over the past two years. The Pennsylvania Insurance Department regulates this sector of the industry to ensure that insurance rates remain at a reasonable level. Homeowners insurance is not mandatory in the state, but it is suggested that homeowners purchase coverage to protect their properties from natural disasters and other loss scenarios.
Pennsylvania is home to more than 12 million people. Nearly 10% of the state’s population is currently uninsured. Though the Pennsylvania Insurance Department works to ensure that consumers can afford coverage, the agency cannot force insurance companies to significantly lower the cost of health insurance as these businesses are free to operate in a way that allows them to generate profit. The state currently has plans to build a health insurance exchange. These plans are being handled by the Pennsylvania Insurance Department.
The state is required to host a health insurance exchange program per the Affordable Care Act. The exchange is meant to provide consumers with access to affordable, yet comprehensive coverage. The policies that are sold through the exchange come from the state’s health insurance companies.
Pennsylvania Insurance Resources:
Pennsylvania Insurance Commissioner: Michael F. Consedine
Pennsylvania Department of Insurance Website:
Pennsylvania Insurance Licensing Info:
File Insurance Complaint: