In Pennsylvania, all drivers are required to carry auto insurance, and the state offers two key options: no-fault and tort insurance. Drivers must understand the differences between these two systems, as they affect how liability is determined, what coverage is available, and how compensation is awarded following an accident.
What Does “Tort” Mean in Car Insurance?
In personal injury law, a “tort” refers to the right to seek compensation from another party for damages. In a tort-based insurance system, the driver found to be at fault for the accident is responsible for covering the other party’s damages. This is typically done through the at-fault driver’s liability insurance. Thirty-eight states, including Pennsylvania, follow this system. Although individual state laws can influence how tort insurance operates, at-fault drivers may be held liable for medical expenses and property damage.
What Is No-Fault Insurance?
Under a no-fault insurance system, drivers are required to carry personal injury protection (PIP) as part of their auto insurance policy. After an accident, regardless of who is at fault, PIP coverage pays for the medical expenses of the policyholder and their passengers. In this system, each driver’s insurance handles their own medical costs for minor injuries, which can streamline the claims process. However, no-fault insurance does limit the ability to file lawsuits for non-economic damages like pain and suffering unless certain conditions are met.
Full Tort vs. Limited Tort: Which Is Better?
Pennsylvania allows drivers to choose between full tort and limited tort coverage. The best way to determine which option is right for you is to understand the key differences between the two systems.
- Limited Tort: This option restricts the right to sue for non-economic damages, such as pain and suffering, unless the injuries meet certain state-defined criteria. These criteria often include permanent disfigurement or impairment of a bodily function. However, opting for limited tort usually results in lower insurance premiums and faster claims resolution since lawsuits are less likely. The trade-off is that policyholders may face higher out-of-pocket costs for damages not covered under limited tort.
- Full Tort: The primary benefit of full tort insurance is the ability to sue for a broader range of damages, including non-economic losses, without restrictions. While this offers more comprehensive protection in the event of an accident, it also comes with higher premiums. Full tort is generally favored by those who want the option to seek compensation for pain and suffering, regardless of the severity of their injuries.
Pennsylvania’s Tort Insurance Options
In Pennsylvania, full tort is the default option for car insurance policies. However, drivers may opt for limited tort by signing a waiver. Those who choose limited tort are restricted from suing for non-monetary damages unless one of the following exceptions applies:
- The at-fault driver was uninsured.
- The at-fault driver was operating a vehicle registered in another state.
- The at-fault driver was under the influence of drugs or alcohol.
- The at-fault driver caused the crash intentionally, aiming to harm themselves or others.
If a limited tort policyholder’s injuries fall under the state’s definition of “serious,” such as permanent disfigurement, they may still be able to pursue compensation for pain and suffering.
Making the Right Choice
There is no one-size-fits-all answer to whether full tort or limited tort is better. Drivers who choose limited tort may benefit from reduced premiums and never need to sue another driver, which can result in long-term savings. On the other hand, those with full tort coverage may experience serious pain and suffering after an accident and appreciate the ability to pursue compensation without restrictions. The decision ultimately depends on a driver’s needs, risk tolerance, and financial situation.
Contact a Chester County Car Accident Lawyer at Eckell Sparks for Legal Guidance After a Car Accident
Navigating Pennsylvania’s auto insurance laws can be complex, especially after a car accident. For legal guidance, contact the experienced Chester County car accident lawyers at Eckell, Sparks, Levy, Auerbach, Monte, Sloane, Matthews & Auslander, P.C. We can help answer your questions. Call 610-565-3701 or complete our online contact form to schedule a consultation. Located in Media and West Chester, Pennsylvania, we proudly serve clients throughout Delaware County, Chester County, and Montgomery County.