Pa. Expects $120M in Car Insurance Rate Cuts
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Pennsylvania Gov. Ed Rendell said that findings from an auto insurance study would be used to cut premiums by at least $120 million over the next several months. Insurance Commissioner Diane Koken and her department will use the findings on tort selections and urban and rural area driving experience, to “hold the line on insurance rates,” according to Rendell. Pennsylvania law gives drivers the choice of full or limited tort on their auto insurance policies. Limited tort offers a savings on auto insurance premiums. Consumers who select limited tort are still able to recover all out-of-pocket medical and other expenses, but not certain damages such as payments for pain and suffering unless their injuries are defined as serious. Full tort coverage, which is more expensive, allows for unrestricted rights to bring suit against the negligent party. In its analysis, the department said that it further confirmed its earlier position, now with the benefit of a greater volume of data, that a 40 percent tort differential between full and limited tort electors was appropriate on a coverage-by-coverage basis for bodily injury, first party benefits, and uninsured/underinsured motorist. More : insurancejournal.com |