Your Philadelphia Neighborhood Law Office
Can you get by today on 1974 money?
The Pennsylvania insurance companies want you to do just that!
The state minimum liability coverage has been the same since 1974. Most of us remember our parents telling us the cost of a loaf of bread or the price of a movie ticket when they were kids. Let’s go back to 1974 for a moment and compare it to today.
1974 vs. 2015
| Comparison | 1974 | 2015 |
|---|---|---|
| Cost of a gallon of Gas | 55 cents | 2.66 |
| Average cost new car | $3,750 | $33,560 |
| Average Income per year | $13,900.00 | $52,250.00 |
| Average Monthly Rent for a 1 bedroom | $185 | $1,345.20 |
| Loaf of bread | 24 cents | $2.25 |
| Movie ticket | $1.89 | $10.50 |
So, when you ask yourself, “Could I live today on what I earned, or what my parents earned, in 1974?”, it seems clear the answer is no. The Bureau of Labor Statistics’ CPI Inflation Calculator tells us that the dollar just doesn’t have the same buying power it did in 1974. What $1.00 would buy you in 1974, you would need to spend an equivalent of $4.83, for a difference of $3.83 more.
Today, in Philadelphia and the state Pennsylvania, the minimum car insurance requirement for property damage is $5,000.00 regardless of fault. The highest minimum liability is $15,000.00, for bodily injury provided that you are found liable in an auto accident.
The minimum just isn’t enough. It has already been established you can’t live on money from 1974 today in 2015. It’s time for change. Insurance companies have been providing the same minimal insurance limits for 41 years, and premiums are not the same as in 1974.
You can make a difference. Please reach out to your local Pennsylvania legislators and the legislators in committee that can make a difference. Visit the PA Insurance Committee, to find out more. You may also view the bill itself, PA Senate Bill 928 (HB928).
Some of the information for this article was gathered from the following websites:
KBB.com, Census.gov,DMV.org
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Call Leo M. Flynn, Esquire at Martins Mill Legal Center, LLC. today for your no obligation consultation 215-305-6222.
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