Pa. Department Monitors Private Passenger Auto Marketplace

The Pennsylvania Insurance Department reportedly continues to monitor the private passenger automobile insurance marketplace, in an effort to analyze the effects of reforms enacted under Act 6 of 1990.

Through a recent evaluation, it was determined that additional savings should be applied to the full tort and limited tort choice system, and that those savings should be made available to limited tort selectors.

Most recently, a minimum 15.3 percent savings between the full and limited tort rates was what policyholders would reportedly realize as a result of selecting the limited tort option. The Department’s latest findings show that the savings between the full and limited tort selectors should be adjusted to approximately 40 percent for bodily injury, first party benefits, and uninsured/underinsured motorist coverage.

To implement this, all private passenger automobile insurance writers in Pennsylvania were required to submit new rate filings applying the limited tort differential on a coverage-by-coverage basis.