Understanding Limited Tort Auto Insurance And Its Implications

Tort is a legal term that refers to an action that resulted in harm to another person. There are two types of tort laws that affect lawsuits filed against other drivers. Full tort and limited tort are two types of auto insurance coverage that determine the policyholder's right to sue the at-fault driver for damages. Full tort insurance allows the policyholder to sue the at-fault driver for pain and suffering without any restrictions. On the other hand, limited tort insurance restricts the policyholder's ability to sue for pain and suffering and only allows them to sue for monetary damages in most cases.

Full tort insurance vs. limited tort insurance

Tort insurance is a system of auto insurance that allows drivers to recover damages from other parties at fault in a car accident. Thirty-eight states are tort states, meaning the at-fault driver is financially responsible for damages and injuries caused to others. The remaining 12 states, plus Washington, D.C., are "no-fault" states, where drivers must purchase personal injury protection (PIP) to cover their medical bills, regardless of who caused the accident.

Three states—Kentucky, New Jersey, and Pennsylvania—are considered "choice" no-fault states, where drivers can opt out of no-fault coverage and choose between full tort and limited tort options.

Full tort insurance allows you to sue the at-fault driver for pain and suffering, without any restrictions. This type of coverage has no limits on the compensation you can receive after a car accident caused by another driver. However, it is more expensive than limited tort insurance, with premiums about 15% higher.

Limited tort insurance restricts your ability to sue for pain and suffering unless you have suffered a "serious injury." This type of coverage only allows you to sue for monetary damages, such as medical expenses and loss of income, in most cases. While it is more affordable, limited tort insurance may not provide adequate protection in the event of a serious accident.

When choosing between full tort and limited tort insurance, consider your budget, your risk tolerance, and your financial situation. Full tort insurance offers broader financial reimbursement in the event of a serious accident, while limited tort insurance may result in more out-of-pocket expenses.

Tort law

• Provide redress to injured parties for harms caused by others
• Impose liability on parties responsible for the harm
• Deter others from committing harmful acts

In the context of auto insurance, tort laws are designed to help the harmed party receive compensation from the responsible party. There are two types of tort laws that affect lawsuits you can file against other drivers: full tort and limited tort. Full tort coverage has no restrictions on the compensation you can get after a car accident that another driver causes. In contrast, limited tort coverage restricts how much compensation you can get.

No-fault insurance

In a no-fault insurance state, if you are injured in an auto accident, you would file a claim with your insurance company to pay for related medical costs, regardless of who is at fault. This means that each driver's individual insurance company pays for their medical expenses.

Pain and suffering

Full tort coverage allows individuals to sue for pain and suffering without restrictions. This means that there is no minimum threshold for the severity of injuries, and individuals can sue for any pain and suffering they experience, regardless of how minor it may seem.

On the other hand, limited tort coverage restricts the ability to sue for pain and suffering. Individuals with limited tort coverage can only sue for pain and suffering if they have suffered a "serious injury". This is defined as "a personal injury resulting in death, serious impairment of body function, or permanent serious disfigurement".

It is important to note that the definition of a "serious injury" can vary by state, and there may be other exceptions that allow individuals with limited tort coverage to sue for pain and suffering. For example, in Pennsylvania, individuals can sue for pain and suffering if the at-fault driver was driving under the influence of drugs or alcohol or if the driver intended to cause harm.

At-fault states

In the US, 38 states are tort states, meaning the at-fault driver is financially responsible for damages and injuries caused to others. In these "at-fault" states, the driver who causes an accident is responsible for paying the other driver's medical expenses, additional damages such as loss of wages, and pain and suffering.

Tort states require drivers to carry liability auto insurance to cover any injuries and property damage they cause to someone after an accident. However, tort states do not require drivers to carry additional coverages, like personal injury protection and medical payments coverage.

In some states, drivers can choose between the limited and full tort car insurance system, while in other states, it is mandated by law for all drivers. Limited tort insurance is less expensive than full tort insurance, as it restricts the ability to sue for pain and suffering unless the injuries are severe. Full tort insurance, on the other hand, allows individuals to sue an at-fault driver without restrictions for medical expenses, lost income, vehicle repairs, and pain and suffering.

Frequently asked questions