Pennsylvania Car Insurance Rates and How They Are Set

Pennsylvania car insurance rates are set by each insurance company and reviewed by the Pennsylvania Insurance Department (PID). PID says it reviews auto insurance rate filings year-round, evaluating whether proposed changes are justified, accurate and fair, and that when necessary it works with insurers to revise, resubmit or withdraw unreasonable requests ¹. Its rate review team checks that rates are not excessive, inadequate or unfairly discriminatory ¹.

PID reported in April 2026 that the state's personal auto market is stabilizing. PID-approved private passenger auto rate filings averaged a 0.2 percent decrease in 2025, and recent PID-approved filings in 2026 reflected an average 0.5 percent decrease ¹. Those are averages across policyholders, not a forecast for any one driver. Our guide to why car insurance goes up covers the personal reasons a bill can rise while the statewide average falls.

PID's description of its own process is the clearest guide to how Pennsylvania auto rates move. Insurers file proposed rate changes, PID's rate review team evaluates them, and the outcome is reported as "PID-approved" filings ¹. PID says it pushed back against excessive or unfair rate increase requests and that this saved Pennsylvania consumers $91 million from filings in 2025 ¹. That is PID's own figure for the effect of its review across all auto filings, not a number any single policyholder will see.

PID also says Pennsylvania's personal auto market has more than 200 insurers ¹. With that many companies, the same driver and car can be priced quite differently, and PID itself suggests periodically checking coverage with an insurer or agent ¹. Our explainer on what a rate filing is covers what a filing usually contains.

PID's release says Pennsylvania drivers, like drivers nationwide, faced significant average auto insurance rate increases from 2022 to 2024 ¹. The 2025 average of a 0.2 percent decrease and the 2026 average of a 0.5 percent decrease are small moves after that run of increases ¹. PID says the 2026 decreases amount to a $60 million reduction in proposed premium costs, and that the stabilization could show up as the same or a lower premium at a new policy or at renewal ¹. A statewide average can still hide increases for some policyholders and larger decreases for others.

Pennsylvania calls the duty to insure "financial responsibility." The Motor Vehicle Financial Responsibility Law defines it as the ability to pay damages of $15,000 for injury to one person, $30,000 for injury to two or more people in one accident and $5,000 for damage to the property of others in one accident ³. Separately, every policy covering a vehicle required to be registered in the state, other than listed exceptions such as motorcycles, must include a medical benefit of $5,000 ⁵. PID's auto insurance page lists the same minimums and notes that some companies offer a combined single limit of $35,000 that meets the bodily injury and property damage requirements ².

PID's auto page also explains that drivers must purchase and maintain auto insurance to legally drive in Pennsylvania, that a lapse may lead to suspension of the vehicle registration, and that insurers are required to report policy terminations to PennDOT ². Our guide to what happens if car insurance lapses explains how a gap can also affect future prices.

The $5,000 medical benefit is first-party coverage: it pays medical bills for you and others covered by your policy ^{2 5}. The statute also requires insurers to make available a policy that contains only the minimum financial responsibility and medical benefit requirements ⁵. Higher limits and other benefits are available at extra cost, and PID notes that higher limits are available for each required coverage ².

Pennsylvania asks each named insured to choose between two tort options, set out in 75 Pa.C.S. section 1705 ⁴. The choice affects both the premium and the right to sue another driver.

• Full tort. A person bound by the full tort option remains eligible to seek compensation for both economic loss and noneconomic loss, such as pain and suffering, caused by another person's fault ⁴.
• Limited tort. A person who elects limited tort can still seek compensation for economic loss, such as medical bills and other out-of-pocket costs. Unless the injury is a "serious injury," that person is precluded from suing for noneconomic loss, subject to exceptions listed in the statute ⁴. The law defines a serious injury as a personal injury resulting in death, serious impairment of body function or permanent serious disfigurement ³.

The exceptions in section 1705 include cases where the at-fault driver is convicted of, or accepts Accelerated Rehabilitative Disposition for, driving under the influence in that accident, is driving a vehicle registered in another state, or has not maintained financial responsibility. A limited tort insured also keeps full tort rights when injured as an occupant of a vehicle other than a private passenger vehicle ⁴.

The statute requires insurers to give a standard notice describing both options. If a named insured does not respond to the notices, that person is conclusively presumed to have chosen full tort ⁴. Section 1705 also says an insurer may not cancel, refuse to write or refuse to renew a policy based on the tort option chosen ⁴. Because the option changes the right to recover damages, questions about a specific situation are best taken to the insurer, an agent or PID.

PID's auto page says Pennsylvania law requires a premium reduction of at least 5% for each vehicle on a private passenger policy when all named policyholders are 55 or older and have completed a PennDOT-approved driver improvement course ². Other discounts vary by insurer, so it is worth asking which ones apply.

A statewide decrease is an average. A renewal can rise because a driver was added, a claim or violation was recorded, a discount ended, the vehicle changed or coverage limits changed. Choosing full tort instead of limited tort, or higher first-party benefits, also changes the price. Our page on whether car insurance rates are going down explains why averages and individual bills move differently, and our guide to reading a renewal notice shows where the reasons usually appear. Comparing quotes from several insurers for the same coverage and tort option shows whether a price is in line with the market.

PID's Consumer Services Online Portal handles both complaints and general insurance questions, and PID's help page lists 1-877-881-6388 for filing a complaint or asking a question ⁶. PID's April 2026 release also lists 1-866-PA-COMPLAINT (1-866-722-6675) and pa.gov/consumer for questions or complaints ¹.

For a question about a specific claim, start with your insurer and then PID; we do not give claims advice. QuotePitStop is a lead-generation service, not an insurance company, agent or broker.

• ¹ Official record: PID's April 22, 2026 release, the 0.2 percent average decrease in 2025, the 0.5 percent average decrease in 2026, the $60 million and $91 million figures, more than 200 insurers, PID's description of rate review and the 1-866 complaint line, checked October 13, 2026.
• ² Official record: PID's auto insurance page, the $5,000, $15,000, $30,000 and $35,000 figures, the lapse consequences and the 5% mature driver discount, checked October 13, 2026.
• ³ Official record: 75 Pa.C.S. section 1702, the financial responsibility amounts and the definition of serious injury, checked October 13, 2026.
• ⁴ Official record: 75 Pa.C.S. section 1705, the limited and full tort options, exceptions, default election and nondiscrimination rule, checked October 13, 2026.
• ⁵ Official record: 75 Pa.C.S. section 1711, the required $5,000 medical benefit and minimum policy, checked October 13, 2026.
• ⁶ Official record: PID's complaint and help page, the Consumer Services Online Portal and the 1-877-881-6388 line, checked October 13, 2026.