With the already complex car insurance sector with different policies, different coverages, and many terms of service, understanding additional terms associated with car insurance can be a little confusing. One such confusion is what makes full tort insurance different from limited tort car insurance?
The term tort means an act that leads to infringing someone’s right. But how does this word fit with auto insurance? Let’s examine the difference between full tort car insurance and limited tort auto insurance and which one you should choose.
Understanding Auto Insurance Basics
Here’s what happens when you get car insurance. Drivers are required to carry liability insurance in almost every state. Different policies cover various damages incurred in a car accident.
So when you get in a car accident, you can claim the liability insurance of the other driver who is at fault to pay for the medical treatments and property repairs (which includes car damages). This is why having liability insurance is so crucial.
Apart from liability insurance, drivers also get collision insurance, comprehensive insurance, uninsured motorist coverage, etc., to further insure themselves from other damages.
So in case, the driver at fault does not have liability insurance, you can claim your uninsured motorist coverage. Collision coverage can be claimed to pay for the costs of repairs needed to fix your car after the accident.
What’s Tort Car Insurance
Tort car insurance is when the driver at fault for the accident has to pay for the car repairs and medical treatment of the other driver involved in the accident. So when you get in a road accident, you can claim the at-fault driver’s liability insurance to pay for the medical treatments and car repairs.
There are 38 states in the US that follow the Tort insurance system. The tort system allows you to claim insurance for damages, including:
- Medical bills
- Vehicle repairs
- Lost wages
- Pain and suffering
If you notice, there are just 38 states that follow a tort insurance system. What about the other 12 states? They have a separate insurance system, a No-fault system.
No-Fault Insurance
There are 12 states in the US that follow the no-fault insurance system and hence are called no-fault states. No-fault states require drivers to get a personal injury protection plan along with liability insurance.
If you get in a car accident, you have to claim your personal injury protection plan to cover the cost of medical treatments. It does not matter whose fault the accident was, and you pay for your and your passengers’ medical treatments with your policy. Suing the other driver for pain and suffering is also rare in no-fault states.
Full Tort vs. Limited Tort: What’s the Difference?
Even in the states that follow the tort insurance system, there’s a further division for full tort and limited tort car insurance. Drivers have the option to either choose a full tort car insurance or go with limited tort auto insurance.
Full Tort Insurance
When it comes to full tort car insurance, drivers have all the right to get reimbursed in a car accident. They can also sue the at-fault driver to pay for the pain and suffering damages. Full tort insurance, for this reason, is more expensive than limited tort insurance.
Limited Tort Insurance
Limited tort is very similar to full tort car insurance but with only one significant difference. With limited tort insurance, drivers lose the right to sue the other driver (who is at fault) for pain and suffering damages.
It is also the reason why limited tort auto insurance is cheaper than full tort insurance. But why would someone give up the right to sue someone for pain and suffering damages?
Pain and suffering (mental and emotional) are subjective. Some people would rather have their insurance bills go down rather than sue someone for their mental and emotional suffering due to the accident.
Limited tort insurance does not allow suing for pain and suffering damages, but this can be reversed in severe accidents. A person with limited tort insurance can sue the at-fault driver if the car accident resulted in the following:
- Permanent body damage
- Permanent disfigurement
- Dismemberment
- Death
- Serious body function impairment
With full tort car insurance, you can sue the driver at-fault for mental pain and suffering, including:
- Emotional suffering due to the accident
- Suffering due to the treatment for the accident
- Stress and anxiety
- Physical pain and discomfort
Tort and No-Fault States
Here are all the states that follow the no-fault car insurance system:
- Minnesota
- New Jersey
- Massachusetts
- Florida
- Hawaii
- New York
- Kansas
- Kentucky
- Michigan
- North Dakota
- Pennsylvania
- Utah
All the other states except these 12 states follow the tort car insurance system. A no-fault system was created to reduce the cost of car insurance policies. So if you live in a state that follows the tort insurance system, car insurance can get a little expensive.
This is why it is imperative that you compare all the car insurance companies and find the one that offers the best coverage at the lowest rates. For example, if you are a resident of Nevada, look for cheap Nevada car insurance companies, compare their prices and ranges, and select the option that suits your needs the best.
Should You Get Full Tort Car Insurance?
Here’s the most important question; should you get full tort car insurance or save money upfront by choosing limited tort car insurance? Full tort car insurance costs around $80 to $100 more than limited tort insurance. That is a lot of extra money.
But consider this. What if you have limited tort insurance and get in a car accident that causes severe trauma? This mental trauma won’t go away, and you’ll need the help of a psychologist, and psychologists are not cheap.
So you will end up paying a lot more than $80 if you cannot sue the other driver for the cost of this mental suffering. Weigh all the options, think about everything clearly, and then make the decision. Stay insured and drive safe.
Meta
Here is everything you need to know about the differences between Full Tort and Limited Tort Car Insurance, and which one should you choose?