Question: What are the differences between Limited Tort and Full Tort? It appears that I have a choice with my state, what should I base my choice on?
Answer: Limited and Full Tort coverage comes into question with certain states. Few states make a distinction between two tort claims. If you go with Limited Tort Coverage, you can sue at fault third parties for injuries and out of pocket expenses they caused to you or your family members as a result of an accident. However, you cannot sue them for pain and suffering or other non-monetary damages. There are exceptions to this condition when the injuries considered to be “serious” nature.
If you choose Full Tort Coverage, there is no restrictions as to how you and your family can sue third parties. In other words, you can sue them for injuries, out of pocket expenses and pain and suffering they caused. You have more options with this choice and your lawyers can go crazy.
As mentioned above this option is only brought forward by few states like Pennsylvania. Generally, you will need to choose if you want to go Full or Limited Tort when you are buying liabilities coverage. If you choose Limited Tort option, you will pay lower auto insurance rates in exchange for giving up on bringing court actions for pain and suffering following car accidents.
One of the main reasons behind this tort options is to lower vehicle insurance rates. When people sue for less in a certain state the overall automobile insurance rates are expected to go down. And your rates come down if you go for limited tort policies.