AUTOMOBILE INSURANCE COVERAGE

Insurance companies that sell automobile insurance in Pennsylvania are required to offer all customers the option to add "underinsured" and "uninsured" motorist coverage to their policies.

"Underinsured" motorist coverage is insurance that you purchase from your insurance company to pay for your losses if you are injured by someone who does not have enough liability insurance to pay for all of the injuries you may suffer. "Uninsured" motorist coverage is insurance that you purchase to pay for your own losses if you are injured by an uninsured or a hit-and-run driver.

Even if you do not have an insurance policy yourself, you may be entitled to uninsured and underinsured coverage in the event you are in a car accident. The Pennsylvania Motor Vehicle Financial Responsibility Law defines an "insured" as "a spouse or relative" of a named insured, if the spouse or other relative is "residing in the household of the named insured." Any minor residing in the household in the custody of a household member is also entitled to coverage. Everyone entitled to claim coverage as a household member can also claim uninsured and underinsured benefits if the named insured opted to purchase them.

Pennsylvania courts have clarified the facts and circumstances that make a person a "resident relative" in automobile insurance policies. A person's residence is "a factual place of abode." A residence does not have to be permanent and can simply mean that someone is physically living in the household. For example, a father living in his own home in Pittsburgh was found to be a member of his son's "household" and was entitled to coverage under the son's automobile policy, despite the fact that the son was on military duty in Korea. The father did not own a car and had no automobile insurance coverage. The son owned an insured car, which he garaged at the father's house. Focusing on the facts that the son was only temporarily in the military, that he continued to use the home as his legal address, and that he listed the home as his residence with the insurance company, the court found that the father was a member of the son's household.

In another case, a teenage child who lived in her mother's home and stayed in her father's home "only twice during the entire school year" was not a resident of her father's home for the purpose of determining whether she could collect coverage under his insurance policy. Noting that children who spend significant time in both parents' households can be residents of both households, the court found that the child simply did not maintain a sufficiently significant physical presence in her father's house to merit her having status as an insured.

While Pennsylvania law absolutely requires that all drivers maintain minimal liability coverage, the purchase of underinsured and uninsured motorist coverage is optional. Since many people only purchase minimal liability coverage, and an alarming number of drivers drive without any insurance at all, it is wise to purchase underinsured and uninsured motorist coverage. You should consider reviewing your insurance policy with your agent or your attorney to make sure you that understand your coverage and to check whether you are adequately insured.

The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your own situation.

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