Full tort vs. limited tort Auto insurance: What is the difference? Tort is a legal term used in auto insurance; it may sound complicated, but it is a simple term. This means an action that develops in harm to others. Tort laws are tailored to help harmed persons receive compensation from the at-fault party. It comes in two main types of tort laws: full tort and limited tort.
In some states, your auto insurance agent may give you the choice to select between full tort and limited tort auto insurance. Most policyholders mistake these types of torts for each other, while they are different from each other. To know the differences between these torts in life insurance, you will need to know what torts in insurance are and the differences between full and limited torts.
What is Tort Auto Insurance?
Tort insurance allows auto insurance companies to recover damages from an at-fault party. It is not a standalone policy; instead, it is an insurance coverage option. Depending on your state, this coverage may not be available to you. Generally, some types of car insurance are mandatory for drivers, while each state has its limits and regulations. Other states are considered no-fault states.
In these states, each driver’s personal injury protection covers payments for medical costs and injuries irrespective of who is at fault. Unlike no-fault states, tort states are the opposite. In these states, drivers are held responsible for the damages and injuries they cause to others. This means the at-fault driver is financially responsible for the loss the other driver sustains.
Full Tort vs. Limited Tort Auto Insurance: What is the Difference?
Both your right to sue an at-fault driver and the cost of your car insurance premiums are affected when you are selecting between limited tort and full tort auto insurance. Depending on your state laws, whether you need full tort or limited tort is determined. While these two torts are good for your auto insurance policy, the following explains their differences:
Full Tort Auto Insurance
Full tort auto insurance coverage means no restrictions on your right to sue an at-fault driver. This means you can sue the driver for injuries and disabilities, as well as pain and hurt due to the accident. However, it is more expensive than limited tort auto insurance because it gives you the right to sue the at-fault driver.
Limited Tort Auto Insurance
This coverage means you give up your rights to sue the at-fault driver for hurt and pain sustained from a car accident. It costs less than full-tort auto insurance. With this coverage, you can only sue an at-fault driver if you sustain certain severe issues from a car accident. These issues include loss of a limb, injuries that stop you from working for a lifetime, serious impairment, and permanent disfigurement.
Can I Select Between Full vs. Limited Tort Auto Insurance?
You can select between full and limited tort in tort states. However, if you reside in any of these three tort states—Kentucky, Pennsylvania, and New Jersey—you can easily select what tort you want. The limits of this tort are the same in these states; they also have slight differences.
In Kentucky and New Jersey, limited tort is the default, while in Pennsylvania tort, full tort insurance is the default. These, however, shield you against lawsuits filed by the harmed driver, covering medical bills and other legal fees.
Full Tort Or Limited Tort Auto Insurance: Which Should I Have?
While limited tort may be the best idea for some drivers, it may not be the right one for all drivers. If you’re having difficulty selecting between full tort and limited tort auto insurance, the following can help you decide which is best for you:
- Your Budget:
If you are on a strict budget, limited tort may be the best for your budget. This is because it is the least expensive tort than a full tort.
- Sorce of Income:
For those who are the primary breadwinner in their homes and might face financial difficulties if they are unable to sue for lost wages and are hurting after an accident, full tort is the best idea due to its additional premiums.
- The Number of Drivers in Your Home:
Selecting limited tort does not limit your ability to sue for pain and hurt in an accident, but it limits the abilities of other drivers in your policy to carry out this act. Before selecting a tort, discuss with other drivers your policy and your insurance agent to understand your actions and what is best for you.
Keep in mind that the best insurance policy isn’t always the cheapest. If you are not sure which is best for you between full and limited tort, discuss with an experienced agent to guide you through.