Auto Insurance Tort States: Understanding The Legal Landscape

Tort law allows people to seek compensation from at-fault drivers after car accidents, whether through liability insurance or lawsuits. In the US, 38 states follow the tort system for auto insurance, which gives injured parties more leeway to sue for damages. The other 12 states limit what victims can sue for and require them to file claims through their own insurance for medical bills. In tort states, drivers must carry liability insurance to cover the property damage and injuries they cause to others in an accident. However, tort states do not require drivers to carry additional coverages, like personal injury protection and medical payments coverage.

Tort states require drivers to carry liability insurance to cover injuries and damages

In total, there are 38 tort states, while 12 states, plus Washington, D.C., are no-fault states. In tort states, drivers are required to carry liability auto insurance to cover any injuries and damages they cause to others after an accident. This means that the at-fault driver's insurance company will pay for all damage costs in the event of a crash. Tort states give injured parties more flexibility to sue for damages, whereas no-fault states limit what victims can sue for.

The three "choice" no-fault states—Kentucky, New Jersey, and Pennsylvania—allow drivers to choose between full tort, limited tort, or no-fault insurance. Full tort insurance allows unrestricted rights to sue for damages, regardless of their severity, whereas limited tort insurance restricts the right to sue for non-economic damages unless certain severity thresholds are met. Limited tort insurance is typically about 15% cheaper than full tort insurance.

When choosing between full tort and limited tort insurance, it's important to consider your budget, risk tolerance, and financial situation. Full tort insurance provides broader financial protection in the event of a serious accident, while limited tort insurance may result in more out-of-pocket expenses if you are severely injured.

By understanding the differences between tort and no-fault states, as well as the options available in choice no-fault states, drivers can make informed decisions about their auto insurance coverage and ensure they have the protection they need in the event of an accident.

In no-fault states, drivers must purchase personal injury protection (PIP) to cover their medical bills

In the US, each state has the autonomy to decide on the type of auto insurance laws to implement. Some states are tort liability states, while others are no-fault states. No-fault state car insurance, also known as personal injury protection (PIP), is a mandatory requirement in many states.

In no-fault states, drivers are required to purchase personal injury protection (PIP) insurance to cover their medical expenses after a car accident, regardless of who was at fault. This type of coverage also extends to lost wages, death benefits, and funeral expenses. PIP policies generally cover a portion of the costs of these damages. For instance, in Florida, PIP policies cover up to 80% of medical costs for emergency medical conditions up to the policy limit. For less severe injuries, the policy provides up to $2,500. Additionally, PIP policies cover a portion of lost wages, with Florida requiring coverage of up to 60% of lost wages based on the individual's income in the 13 weeks preceding the accident. Furthermore, Florida's PIP policies provide up to $5,000 in death benefits, encompassing funeral and burial expenses for qualified survivors.

It is important to note that there are certain damages that are not covered by PIP policies. These include damage to the insured person's car and other property, as well as the bodily injuries of the other car's occupants and adult passengers in the insured person's vehicle. Pain and suffering claims are also typically excluded from PIP coverage.

No-fault insurance laws vary across different states. For example, Florida has a mandatory no-fault state car insurance policy with a minimum limit of $10,000, along with the requirement to purchase property damage liability insurance. On the other hand, states like Kentucky, New Jersey, and Pennsylvania offer their residents the choice to opt out of the no-fault system when purchasing their car insurance policy. These states are known as "optional no-fault" or "choice no-fault" states.

While no-fault insurance provides quick compensation to car accident victims, there are some drawbacks. One of the main disadvantages is the cost, as most states that require PIP coverage have premium rates above the national average. Additionally, a claim on the driver's insurance, even if they were not at fault, may result in increased premiums. Furthermore, no-fault states tend to experience a higher number of fraudulent claims.

Full tort insurance allows drivers to sue for pain and suffering without restrictions

In the US, there are 38 tort states and 12 no-fault states. In a tort state, the driver at fault in a crash is responsible for paying the other driver's medical expenses and any additional damages, such as loss of wages and pain and suffering. In a no-fault state, drivers must purchase personal injury protection (PIP) and file claims through their own insurance for medical bills.

Full tort insurance allows drivers to sue the at-fault driver for pain and suffering without restrictions. Limited tort insurance, on the other hand, only allows drivers to sue for monetary damages in most cases. Full tort insurance is more expensive than limited tort insurance, but it provides more protection in the short and long term.

Only three states—Kentucky, New Jersey, and Pennsylvania—allow drivers to choose between full and limited tort coverage. In Pennsylvania, full tort coverage is the default, and drivers must request limited tort coverage. In New Jersey, full tort coverage gives the policyholder the right to sue for pain and suffering no matter how severe the injury, while limited tort coverage restricts the ability to sue for injuries. In Kentucky, drivers can reject the limitations on their right to sue and must file a special form with the department of insurance.

Limited tort insurance is cheaper but has more restrictions on suing for pain and suffering

Limited tort insurance is a cheaper alternative to full tort insurance, but it comes with more restrictions on suing for pain and suffering. While full tort insurance allows you to sue the at-fault driver for pain and suffering without any restrictions, limited tort insurance usually only permits lawsuits for monetary damages, such as medical expenses and lost income. This means that with limited tort coverage, you generally cannot seek compensation for non-economic losses like emotional distress or physical pain.

However, there are some exceptions where you can still sue for pain and suffering with limited tort insurance. For instance, if you sustain a serious injury that results in permanent disfigurement, a long-term disability, or the loss of a limb, you may be able to sue for pain and suffering. Other situations that may allow for such lawsuits include cases where the at-fault driver was under the influence of drugs or alcohol, the at-fault driver's vehicle was registered out-of-state, the at-fault driver was uninsured, or the at-fault driver intended to cause harm.

Limited tort insurance is often around 15% cheaper than full tort insurance because of the restrictions on suing for pain and suffering. This type of insurance is ideal for those who want to save money on premiums but still want some level of protection in case of an accident. However, it's important to note that limited tort coverage may result in more out-of-pocket expenses in the event of a severe accident, as your ability to sue for non-economic damages is limited.

Currently, only Kentucky, New Jersey, and Pennsylvania allow drivers to choose between limited tort and full tort coverage. In Pennsylvania, you must specifically request limited tort coverage, as full tort is the default option. In New Jersey, limited tort coverage is known as the "limitation on lawsuit option," and it restricts your ability to sue for injuries unless certain exceptions are met. As for Kentucky, drivers must file a special form to reject no-fault insurance and retain the right to sue the at-fault driver.

The right choice depends on your budget and preferences regarding your ability to sue

Tort insurance is a system of auto insurance that allows drivers to recover damages from other parties at fault in an accident. Thirty-eight states follow the tort system, which gives injured parties more leeway to sue for damages. The other 12 states and Washington, D.C., limit what victims can sue for and require them to file claims through their own insurance for medical bills.

In tort states, the at-fault driver is financially responsible for paying the other driver's medical expenses and additional damages, such as loss of wages and pain and suffering. Drivers in these states are required to carry liability insurance to cover the property damage and injuries they cause to others in an accident. However, tort states do not require drivers to carry additional coverages, such as personal injury protection and medical payments coverage.

There are two types of tort insurance: full tort and limited tort. Full tort insurance allows you to sue the at-fault driver for pain and suffering without restriction. Limited tort insurance, on the other hand, only allows you to sue for monetary damages in most cases and has restrictions on the compensation you can receive. Full tort insurance is typically about 15% more expensive than limited tort insurance due to the increased coverage.

The choice between full tort and limited tort insurance depends on your budget and preferences regarding your ability to sue. If you can afford the higher premiums, full tort insurance provides more protection in the short and long term, as it gives you the unrestricted right to sue for pain and suffering. On the other hand, if you are concerned about budget constraints, limited tort insurance is a more affordable option, but it limits your ability to sue for non-economic damages.

In summary, the right choice between full tort and limited tort insurance depends on your financial situation and your comfort level with potentially having to take legal action. Full tort insurance offers broader coverage and the ability to sue without restrictions, while limited tort insurance is more limited in scope and affordability.

Frequently asked questions