On the Personal Lines exam, the Pennsylvania auto questions reward students who understand that PA is a choice no-fault state rather than a simple at-fault or no-fault one. The personal auto policy (PAP) is the contract that delivers the coverages, but Pennsylvania's Motor Vehicle Financial Responsibility Law (MVFRL, 75 Pa. C.S. Chapter 17) controls what must be in it and how it can be ended. This guide builds from the standard PAP framework up to the PA-specific rules you'll be tested on.

The personal auto policy framework

A standard personal auto policy is organized into parts that map to four broad coverages:

• Liability coverage (Part A) – pays for bodily injury and property damage you cause to others (third-party coverage).
• Medical / first-party benefits (Part B) – pays medical costs for you and your passengers.
• Uninsured/underinsured motorists (Part C) – pays when an at-fault driver has no or too little insurance.
• Physical damage (Part D) – collision and comprehensive (other than collision) pay to repair or replace your own vehicle.

The policy also contains duties after a loss, definitions (who is an insured, what is a covered auto), and exclusions. Pennsylvania layers its own mandatory minimums and consumer protections on top of this structure.

Pennsylvania's compulsory coverages

To register and lawfully drive a vehicle in Pennsylvania, the policy must include at least:

• Bodily injury liability: $15,000 per person / $30,000 per accident.
• Property damage liability: $5,000 per accident.
• First-party medical benefits: $5,000 minimum, paid regardless of fault.

These limits are commonly abbreviated 15/30/5, and many carriers offer a combined single limit of $35,000 as an equivalent. The first-party medical benefit is the "no-fault" element: it covers your own injuries without first proving who caused the crash.

Choosing tort: the heart of PA personal auto

Every Pennsylvania applicant must make a written tort election:

• Full tort keeps the unrestricted right to sue an at-fault driver for pain and suffering and all other damages. Premium is higher.
• Limited tort lowers the premium but waives the right to sue for non-economic damages (pain and suffering) except in serious cases—serious or permanent injury, death, and statutory exceptions such as injury caused by a drunk driver, an out-of-state vehicle, or while the insured is a pedestrian.

Crucial points for the Personal Lines exam:

• Limited tort never restricts recovery of economic losses (medical bills, lost wages, repair costs).
• If the applicant makes no selection, Pennsylvania treats the insured as having full tort.
• The tort choice generally extends to the named insured and household family members.

Optional first-party benefits

Beyond the $5,000 mandatory medical benefit, insurers must make available additional first-party benefits, which the insured may buy up:

• Higher medical benefits (commonly to at least $100,000).
• Extraordinary medical benefits above $100,000 (available up to roughly $1.1 million).
• Income loss, accidental death, and funeral benefits.

UM/UIM and stacking

Uninsured motorist (UM) and underinsured motorist (UIM) coverage protect the insured when the other driver can't pay. In Pennsylvania, both must be offered, but the insured may reject them using the state-prescribed written rejection form. Insurers must also offer stacking (combining limits across multiple insured vehicles), which can likewise be waived in writing. A defective or missing rejection form can result in the coverage being read into the policy at higher limits—so producers must document these elections carefully.

High-risk drivers

Drivers who can't obtain coverage in the voluntary market use the Pennsylvania Assigned Risk Plan (PAAIP), the auto market of last resort. Driving without the compulsory coverage exposes the owner to license and registration suspension and reinstatement fees.

Cancellation and nonrenewal protections

Pennsylvania's auto cancellation law (as amended by Act 68 of 1998) limits how insurers can drop a policy:

• During the first 60 days, the insurer is still underwriting and may cancel more freely, but must give a written statement of the reason.
• After 60 days, cancellation is limited to specific allowed reasons (nonpayment, license/registration suspension, fraud or material misrepresentation, becoming a dangerous driver, etc.).
• The general advance written notice for cancellation or nonrenewal is at least 60 days; for nonpayment or material misrepresentation it can be 15 days.
• The notice must state the specific reason and tell the insured of the right to request Insurance Commissioner review within 30 days.

Key Pennsylvania numbers to memorize

Common exam traps

• Assuming limited tort blocks every lawsuit. It only restricts pain and suffering claims and has serious-injury and other exceptions; economic damages are always recoverable.
• Forgetting the full-tort default when the applicant doesn't choose.
• Treating UM/UIM as compulsory. It must be offered but can be rejected in writing; the same goes for stacking.
• Confusing first-party medical benefits (your injuries, no-fault) with bodily injury liability (others' injuries).
• Misremembering notice periods—60 days is the general rule; 15 days applies only to nonpayment or material misrepresentation.
• Believing a single "full coverage" product exists. The PAP is a set of separate, individually selected coverages.

Quick recap

Pennsylvania's personal auto policy delivers liability, first-party benefits, UM/UIM, and physical damage coverage, all governed by the MVFRL. The state requires 15/30/5 liability plus a mandatory $5,000 first-party medical benefit paid regardless of fault, and every insured must elect limited or full tort—with full tort as the default. Limited tort trades premium savings for restricted pain-and-suffering suits but never blocks recovery of economic losses. UM/UIM and stacking must be offered and can be rejected in writing, high-risk drivers buy through the Assigned Risk Plan, and policies generally require 60 days' notice to cancel or nonrenew (15 days for nonpayment or material misrepresentation), with a 30-day Commissioner-review right. Master those and the Personal Lines auto section is straightforward.