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Senate of Pennsylvania
Session of 2021 - 2022 Regular Session


Posted: August 18, 2021 04:37 PM
From: Senator Daniel Laughlin and Sen. Joe Pittman
To: All Senate members
Subject: Increasing Auto Liability Minimums and Improving Consumer Choice for Uninsured/Underinsured Coverage
In the near future, we plan to introduce legislation increasing the minimum amount of insurance a person would be required to carry, and to address “stacking” a confusing option our constituents face when purchasing auto insurance.

Motor vehicle insurance was mandated in 1974. Pursuant to that law, a person is required to carry a minimum amount of insurance: $15,000 for bodily injury per person ($30,000 per accident) and $5,000 in property damage.

Since this law was enacted, consumer costs have skyrocketed. In fact, according to the consumer price index, prices have increased 409% since 1974. This means that for today’s dollar to equal the value of a dollar in 1974, the original minimum auto insurance limits of $15,000/$30,000/$5,000 would have to be increased to $76,402/$152,803/$25,467.

Almost every state has increased their limits since their original enactment; several have increased their limits more than once. Pennsylvania’s inaction has granted us the dubious distinction of having the second lowest limits in the entire country (Florida has $10,000/$20,000/$10,000).

We believe the time is right to increase Pennsylvania’s limits.  To this end, our legislation would increase the minimum limits to $25,000 for bodily injury per person ($50,000 per accident) and $10,000 for property damage.

At the same time, we would like to address the confusing “stacking” option in auto insurance policies.  Stacked insurance is the combining or “stacking” of Uninsured and Under Insured Motorist (UM/UIM) coverage limits by the multiple of vehicles insured to allow consumers to better protect themselves in case of an accident.  Our legislation would allow consumers to buy as much UM/UIM coverage as they want, and therefore make “stacking” of UM/UIM coverage obsolete.

Please join us in co-sponsoring this important legislation to increase the minimum amount of insurance a person would be required to carry, and to address the confusing “stacking” option on an automobile policy.

Introduced as SB893