What does PA require for being self-insured?

The State of Pennsylvania provides a self-insurance option for vehicles located and registered in the state. This type of self-provided coverage stands in place of Pennsylvania motor vehicle insurance provided by an insurance company.

All Pennsylvania motor vehicle self-insurance applicants must submit a completed Application for Certificate of Self-Insurance form to the Pennsylvania Bureau of Motor Vehicles. Individuals, corporations, religious groups and government agencies each require a different type of self-insurance packet, to apply for self-insurance in the state. Applicants may access the required forms on the Pennsylvania DOT website.

An income statement, balance sheet or annual statement for the prior fiscal year is required to show the financial condition of the applicant and must be included with the Application for Certificate of Self-Insurance form. A Completed Master Self-Insurance and Security Agreement is also required for each Pennsylvania motor vehicle self-insurance application.

A form of collateral is also required for motor vehicle self-insurance in the State of Pennsylvania. A Pennsylvania Motor Vehicle Financial Responsibility Law Self-Insurer’s Bond, a Letter of Credit or Escrow Agreement are all accepted forms of collateral. Certain types of securities, such as United States Treasury bills and municipal bonds, may also be used as collateral.

The minimum required security to be provided to the Pennsylvania Department of Transportation for the first secured vehicle is $50,000, with an added requirement of $10,000 in securities for each additional vehicle, up to a maximum of $1,000,000. Once all forms have been completed, they must be signed by the individual applicant or designated number of corporate officers, notarized and submitted to the Pennsylvania Bureau of Motor Vehicles for review and processing.