If you know much about the field of law, you’ve probably heard the term tort. This may seem like an opaque legal term, but it’s actually pretty straightforward. The term tort is used to denote situations in which one party has done another party harm. Simply put, tort law is all about seeking restitution from the party who has caused you damage.
This term has implications throughout the field of law, including inferences for auto accident cases. Your right to sue the driver who caused you harm may rest on the type of insurance you have, whether it’s full tort or limited tort.
So what should drivers know about full tort vs limited tort auto insurance? And which type of coverage is right for you? In this post, we’ll offer comprehensive insight.
Understanding Full Tort vs Limited Tort Insurance
When you’re dealing with tort insurance, the driver who caused the accident is required to compensate the injured party. And likewise, the victim has the right to sue for damages. How much the victim can sue for depends on the specific type of insurance:
- Full tort insurance has no restrictions on the compensation you can seek when another driver causes an accident.
- By contrast, limited tort insurance does impose restrictions on how much compensation you can seek.
There are a couple of other important points that you should know as you consider your insurance options. First, because full tort insurance doesn’t place any cap on the pain and suffering compensation you can seek, it tends to be a little more expensive than limited tort insurance. On average, full tort premiums are about 15 percent more.
The other consideration is that, right now, there are actually only three states that allow consumers to choose from full tort or limited tort insurance. These states are Kentucky, New Jersey, and Pennsylvania.
Pain and Suffering, Explained
We mentioned that one of the big benefits of full tort insurance is that it doesn’t place any cap on the amount of pain and suffering compensation you can pursue. As such, it may be helpful to know a bit more about what the concept of pain and suffering means, in the legal world.
In the eyes of the law, pain and suffering can encompass any physical discomfort or emotional distress that you experience as the result of an auto accident injury. It can include mental anguish, inconvenience, disfigurement, and more. Pain and suffering can also encompass many non-economic damages, for example:
- Hedonic damages (e.g., loss of enjoyment in your life).
- Loss of society or companionship, including loss of a romantic relationship.
- Loss of the physical benefits of a romantic or familial relationship.
- Injury to your personal reputation.
Again, when you have full tort auto insurance, you can sue for pain and suffering compensation with no limit or cap. With limited tort insurance, you can usually sue for monetary damages only, like medical expenses, vehicle repair costs, or lost wages.
If you have a serious injury, limited tort insurance may still allow you to sue for certain types of pain and suffering. Some examples include:
- Injuries so serious and long-lasting that they prevent you from ever working again.
- Injuries that lead to some kind of permanent disability.
- The loss of a limb or a permanent physical disfigurement.
Limited tort insurance may also allow you to sue for pain and suffering in situations where the driver who caused the accident was under the influence of drugs or alcohol, lacks insurance, or has a car registered out of state.
Fault vs No-Fault Insurance
Another important consideration is whether you live in a state that has no-fault auto accident laws. In these states, whenever there is an accident, drivers are automatically responsible for their own medical expenses, irrespective of who caused the accident. Drivers in no-fault states are encouraged to have personal injury protection, which can cover things like your medical expenses, your passengers’ medical expenses, funeral expenses, and more.
Limited tort coverage qualifies as a type of no-fault insurance, as both drivers rely on their own insurance to cover medical expenses following an accident. Full-tort insurance, on the other hand, is a type of at-fault insurance, where the driver who is deemed legally responsible for the accident covers medical costs for all parties involved.
Limited Tort vs Full Tort Auto Insurance: Deciding What’s Right for You
So if you live in a state where you have an option between these two types of auto coverage, how can you determine which option is right for you?
First and foremost, meet with an independent insurance agent, who can listen to your needs and goals and recommend a plan that’s well-suited to your lifestyle and your risk exposure.
As you prepare to meet with your independent insurance agent, keep these basic bullet points in mind:
Limited Tort Insurance
- Only allows you to seek compensation when injuries are serious.
- Only lets you sue for pain and suffering when injuries are serious.
- Is generally more affordable than full tort insurance.
Full Tort Insurance
- Allows you to seek compensation for any type of injury, with no threshold for the severity of the injury.
- Lets you sue for pain and suffering, with no restrictions in place.
- Costs more, typically 15 percent more than limited tort insurance.
A good rule of thumb: If you can afford full tort insurance, it’s usually the better option. But it may not be feasible for every budget. Again, talking with an independent insurance agent is key.
Talk with an Independent Insurance Agent Today
At Sentinel Insurance Advisors, our team is committed to providing a diverse range of products to help you protect yourself and your family, including a number of auto insurance plans. We’re always happy to discuss different options with you, and to help you select the insurance product that’s most closely aligned with your needs. With any questions about full tort and limited tort auto insurance, reach out to Sentinel Insurance Advisors today.
