Tort Auto Insurance: Understanding Your Coverage And Rights

Tort auto insurance is a system in which the driver who caused the accident is responsible for covering the cost of medical bills for everyone involved. Usually, this cost is covered by the at-fault driver's liability insurance. Tort insurance is available in at-fault states and three choice no-fault states: Kentucky, New Jersey, and Pennsylvania. In these three states, drivers can choose between full and limited tort or no-fault insurance, which differ by cost and the policyholder's right to sue.

Tort insurance vs no-fault insurance

The main difference between tort insurance and no-fault insurance is that in a tort system, the driver at fault for an accident is responsible for paying damages and medical costs for the other party, whereas in a no-fault system, each driver is responsible for covering their own injuries and medical expenses, regardless of who caused the accident.

Tort Insurance

Tort insurance is a common form of auto insurance in the United States, with 38 states following a tort system. In these "at-fault" states, the driver who causes an accident is financially responsible for others' injuries and damage to their property, including pain and suffering. This is typically covered by the at-fault driver's third-party bodily injury or property damage liability coverage.

Tort insurance allows auto insurance companies to recover damages from the party that caused an accident. It is not a separate policy but a coverage option, and its availability depends on the state. In tort states, drivers are required to carry liability insurance to cover the injuries they cause to others in an accident, but additional coverages like personal injury protection and medical payments coverage are usually not mandatory.

No-Fault Insurance

No-fault insurance is available in 12 states plus Washington, D.C. In these states, drivers must purchase personal injury protection (PIP) to cover their medical bills, regardless of who caused the accident. No-fault insurance does not cover damage to the driver's vehicle or others' personal property. While drivers can be sued in court, certain conditions must be met, such as a dollar threshold or if the accident resulted in disfigurement or death.

Full Tort vs Limited Tort

Three "choice" no-fault states (Kentucky, New Jersey, and Pennsylvania) allow drivers to choose between full tort and limited tort insurance. Full tort insurance is more expensive but provides unrestricted rights to sue for damages, including pain and suffering. Limited tort insurance is cheaper but limits the ability to sue for non-economic damages unless injuries meet certain severity thresholds.

Full tort vs limited tort

Tort is a legal term that means an action that resulted in harm to another person. There are two types of tort laws that affect lawsuits filed against other drivers. These are full tort and limited tort.

Full tort and limited tort refer to the right to sue an at-fault driver for pain and suffering. Full tort insurance allows you to sue the at-fault driver for pain and suffering with no restrictions. Limited tort insurance, on the other hand, restricts your ability to sue for pain and suffering and only allows you to sue for monetary damages in most cases. Limited tort is cheaper than full tort but may result in more out-of-pocket expenses in the future if you are severely injured in an accident.

Full tort insurance is available in 38 states, which follow the tort system for auto insurance. In these "at-fault" states, the driver who causes an accident is financially responsible for others' injuries and damage to their property. 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 choose between full tort and limited tort insurance. In Pennsylvania, full tort is the default option and you must request limited tort coverage. With limited tort coverage in Pennsylvania, you can sue to get reimbursement for medical expenses when another driver is at fault, but you cannot recover damages for "non-monetary" issues.

When deciding between full tort and limited tort, consider your budget, whether you have dependents who rely on you financially, and the likelihood that you would file a lawsuit if you were hurt in an accident. Full tort insurance may be worth considering if you have a family to support and want the ability to sue for non-medical expenses. Limited tort may make more financial sense if money is tight or if you are a young driver, as it is cheaper but restricts your ability to sue.

Tort insurance cost

The cost of tort insurance varies depending on the type of tort insurance you choose. The two types of tort insurance are full tort and limited tort.

Full Tort Insurance Cost

Full tort insurance is the more expensive option. It allows the policyholder to sue the at-fault driver for pain and suffering in addition to medical costs and is about 15% more expensive than limited tort insurance. The increased cost for full tort insurance can range from $6 to over $50 per month.

Limited Tort Insurance Cost

Limited tort insurance is cheaper than full tort insurance, as it limits the policyholder's ability to sue for pain and suffering. Limited tort insurance only allows the policyholder to sue for monetary damages, such as medical expenses and loss of income.

The cost of tort insurance also depends on location and total coverage. For example, in Pennsylvania, limited tort coverage can save you up to 40% on your rate compared to full tort coverage.

Tort insurance states

In the US, 38 states are tort states, meaning the at-fault driver in a crash is financially responsible for the damages and injuries caused to others. In these states, drivers are required to carry liability insurance to cover the injuries and property damage they cause to others in an accident. The at-fault driver may also have to pay for additional damages, such as loss of wages and pain and suffering.

Tort states include the following:

• California
• Texas
• Georgia
• North Carolina
• Colorado
• Florida
• Hawaii
• Kansas
• Massachusetts
• Michigan
• Minnesota
• New York
• North Dakota
• Utah
• Washington, D.C.

Three states—Pennsylvania, Kentucky, and New Jersey—are technically no-fault states, but they give drivers the option to purchase a tort insurance policy. In these states, drivers can choose between full and limited tort insurance. Full tort insurance is more expensive, but it allows the policyholder to sue the at-fault driver for pain and suffering in addition to medical costs. Limited tort insurance is cheaper, but it restricts the policyholder's ability to sue for non-economic damages unless their injuries are severe.

Tort insurance liability

Tort insurance is a system in which, after a car accident, the driver who caused the accident is responsible for covering the cost of medical bills for everyone involved. This cost is usually covered by the at-fault driver's liability insurance. In essence, tort insurance is a common form of car insurance that allows drivers to recover damages from other parties at fault in an accident.

Tort insurance is available in "at-fault" states, where the driver who causes an accident is financially responsible for others' injuries and damage to their property. Thirty-eight states are tort states, meaning the at-fault driver is financially responsible for damages and injuries caused to others. In these states, you don't have the option to purchase full or limited tort; these options are only available in "choice no-fault states".

There are two types of tort insurance: full tort and limited tort. Full tort insurance is more expensive but allows the policyholder to sue the at-fault driver without any restrictions. Limited tort insurance is cheaper but limits the policyholder's ability to sue the at-fault driver. Limited tort insurance holders can only sue for damages if they have monetary damage, such as medical bills and other out-of-pocket expenses caused by the accident.

Full tort insurance is worth getting if you're comfortable paying a higher premium in exchange for the added benefit of being able to sue for pain and suffering. It's important to note that retaining the right to sue means that after an accident, you will very likely have to work with a lawyer and potentially go to court to receive damages.

Frequently asked questions