Car insurance is designed to protect you financially in the unfortunate event of an accident. But what happens when a car accident claim exceeds an insurance limit? Let’s explore what coverage limits mean and how to protect yourself and your family from major out-of-pocket expenses in Pittsburgh, PA.

What is a Car Insurance Limit?

A car insurance limit is the maximum amount your insurer will pay in the event of a covered claim. These limits are selected when you purchase your policy. If your accident-related expenses stay within your limit, your insurer covers them. But when the claim exceeds that limit, you're personally responsible for the difference.

Most states, including Pennsylvania, have minimum required car insurance limits. However, these limits often fall short in serious accidents. Opting for higher coverage can increase your premium slightly but provides significantly better financial protection.

Learn more about auto protection in Pittsburgh.

Coverage for You and Your Vehicle

1. Personal Injury Protection and Medical Payments Coverage

In no-fault states, either Personal Injury Protection (PIP) or Medical Payments (MedPay) is required. These coverages pay for your and your passengers' medical costs, regardless of fault.

If your expenses go beyond your coverage limits, and you're not at fault, you may pursue compensation from the at-fault driver. If you are at fault, any expenses beyond your PIP/MedPay will be your responsibility.

2. Collision and Comprehensive Coverage

These coverages help repair or replace your car in different situations:

• Collision: Covers damages from hitting another car or stationary object.
• Comprehensive: Covers non-collision events like weather damage, theft, or vandalism.

Instead of a limit, these coverages have deductibles. However, if your repair costs exceed your car’s market value, your insurer will declare it a total loss and offer a settlement up to that value.

For newer vehicles, Gap Coverage or New Car Replacement can be extremely valuable. Gap Coverage pays the difference between your loan balance and your car’s value. New Car Replacement helps you get the same make and model if your vehicle is totaled within a specified period.

Looking for affordable options to protect your vehicle? Explore cheap car insurance plans in Pittsburgh.

3. Liability Coverage

Liability coverages include:

• Bodily Injury Liability: Pays for injuries to others if you are at fault.
• Property Damage Liability: Pays for damage to others’ property.

If these claims exceed your policy limits, you are legally and financially responsible for the excess. That could mean wage garnishment or asset seizure in serious cases.

4. Uninsured and Underinsured Motorist Coverage

If you are hit by a driver who has no insurance or too little, UM and UIM coverage step in. These cover your injuries and vehicle damage.

Given that many drivers carry minimal insurance, having high UM/UIM limits in Pittsburgh is a smart choice. Hit-and-runs are also covered under UM in many cases.

Conclusion: How to Protect Yourself

To avoid devastating out-of-pocket expenses, carry more than just the state minimums. Higher coverage limits for liability, collision, and medical protection can save you from major financial risk.

Accidents are unpredictable, but with the right coverage, you can drive in Pittsburgh with greater peace of mind.

Get instant quotes or speak to an expert today to ensure your car insurance has you fully protected.