Act 28 mandates that insurers increase some of the coverage limits on your private passenger auto, commercial auto and garage auto policies. These changes, approved in June as part of the governor’s comprehensive Budget Bill, will cause your auto premium to increase at renewal. Here’s a highlight of the changes:

• Underinsured motorist (UIM)  and uninsured motorist (UM)  coverage is required for all auto policies beginning Nov. 1
• Minimum UM/UIM limits are increasing to $100,000/$300,000 on this date
  If you have medical payments coverage, the minimum limits is  increasing from $1,000 to $10,000
• On Jan. 1, 2010, the minimum bodily injury limits is increasing from $25,000/$50,000 to $50,000/$100,000
• Minimum property damage limits are also increasing on Jan.1, 2010, from $10,000 to $15,000

Please call our agency to discuss how these changes will affect your auto premium. We’d be happy to review your policy with you.

If you have an umbrella policy, read this
Act 28 also requires that ERIE and my agency offer UIM and UM coverage to all personal catastrophe liability and business catastrophe liability Customers.

• Underinsured motorist coverage refers to coverage that pays for your bodily injury and related medical expenses when you’re injured in an automobile accident and the responsible party (other than yourself) doesn’t have adequate auto insurance.
• Uninsured motorist coverage refers to coverage that pays for your bodily injury and related medical expenses when you’re injured in an automobile accident and the responsible party (other than yourself) doesn’t have auto insurance or can’t be located (hit-and-run).

You’ll be receiving an offer letter from ERIE prior to your renewal. You will be able to add coverage to your policy or you can decline the coverage by signing a rejection form and returning it to ERIE. I also encourage you to call us to discuss this coverage.