Motorists and carriers must follow their state’s car insurance rules as they determine what you must buy and how settlements work. Sometimes there may be choices available and it is certainly the case here. Let’s have a look at the choices and their consequences in terms of costs and restrictions that come with them.
This question only concerns residence of certain states, which 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 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 restriction as to how you and the family can go after 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 of them like Pennsylvania. Generally, you will need to choose when you are buying liability coverage. If you choose Limited Tort option, you will pay lower auto insurance rates in exchange for giving up on bringing court actions against at fault drivers for pain and suffering.
One of the main reasons behind these options is to lower vehicle insurance rates. When people can only demand so much the overall prices are expected to go down, in theory. However, in practice there are places where regulations are pretty though and liability limits are high but average rates aren’t higher than more relaxed systems.
Clearly, there are many other factors are in play. Things like competitiveness of the market can be more influential than most things. Also, weather condition in the region is another one to come to mind. Even the types of policies sold can affect prices. The more people choose more inclusive policies the lower the premiums for them becomes due to the laws of sharing and spreading risks among the participants of the pool.
If you are confused with the terms and conditions you should always seek advice from an independent broker. While you are at it, you should also ask them to shop around for you at the next renewal. Remember, you can shop online as well and compare the results.