12/01/2011 // Philadelphia, Pennsylvania, US // [email protected] // Gregor McGavin

State Farm is cutting overall auto coverage rates for its Pennsylvania customers by an average of more than 1 percent as of Dec. 26, Online Auto Insurance News (OAIN) reports.

State Farm customers throughout the state are expected to save a combined total of more than $16 million a year as a result of the rate cuts, which the company is introducing because of a decrease in the number and size of claims filed by policyholders in the Keystone State.

The announcement could provide policyholders with an opportunity to review their coverage levels and decide whether they have room to purchase car insurance online or in person in greater amounts than those provided in their existing policies.

Pennsylvania law requires all drivers to carry enough liability coverage to pay for damages of up to $15,000 for bodily injury to one person, up to $30,000 total per accident and up to $5,000 for property damage caused by a policyholder.

Source: http://www.dmv.state.pa.us/insurance/liability_insurance.shtml

But those liability coverages pay only for damage an insured driver causes to other motorists and their property. And $35,000 in total liability coverage may not be sufficient financial protection in the event of a serious crash.

According to the Insurance Information Institute (III), motorists who are found liable for damages that are more than the amount covered by their policy can find themselves being forced to pay the difference out of their own pocket.

III recommends that drivers consider higher liability levels and other coverage types, such as collision and comprehensive, which cost a little more than just liability coverage but provide far greater peace of mind.

Drivers in Pennsylvania and other states should contact their agent or coverage provider to find out how much it would cost to boost their coverage to a level at which it would cover most damages resulting from a serious accident.

State Farm officials say not all coverage types will go down in price next month. While the cost of collision coverage will decrease, liability, medical payments and comprehensive coverages may become cheaper for some customers and more expensive for others.

And overall policy rates will continue to vary between policyholders based on the type of vehicle and how far they drive, where they live and other factors.

To learn more about this and other car insurance issues, readers can go to http://www.onlineautoinsurance.com/buy/ where they will find informative resource pages and a rate-comparison generator that can help them quickly evaluate their coverage options.

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