If you’ve been injured in a car accident, you’re no doubt feeling pretty vulnerable. You’re wondering how you will pay your medical bills. How long will it take to get back to work? How will you fix your car? Fortunately, you have car insurance that you can rely upon, but it’s not that simple. What kind of insurance you have may significantly affect your financial recovery. Fault? No-fault? Limited or full tort? What is the difference, and how can the type of insurance you have affected your ability to get fairly compensated in a car accident lawsuit? At Silver & Silver, our experienced Broomall car accident lawyers are here to shed some light on the subject.
What is the Difference Between Fault and No-Fault Car Insurance?
Car insurance benefits and insurance laws vary from state to state.
In those states with fault-based insurance laws, the driver at fault for the accident is responsible for compensating those harmed by their negligence. Accident victims will file a claim against the at-fault driver’s insurance company to cover their medical expenses, lost wages, property damage, and other damages. Suppose the at-fault driver has no insurance, their insurance coverage is insufficient, or the compensation settlement offered by the insurance company is insufficient. In that case, the accident victim can sue the at-fault driver.
No-fault insurance laws were established to simplify the process by requiring all drivers to carry coverage of personal injury protection, or PIP. In a no-fault state, an accident victim will file a claim with their insurance company for their medical expenses and other compensatory damages, regardless of who caused the accident. While the rationale behind no-fault insurance is to expedite access to compensation for victims and reduce lawsuits, it has limitations. For instance, PIP policy limits are often insufficient to cover serious injuries. In these cases, a victim may still need to pursue a lawsuit after a car wreck.
What is Pennsylvania’s Hybrid Version of No-Fault Insurance, and How Can it Affect Your Compensation After an Accident?
Here in Pennsylvania, we have a hybridized version of insurance, or “choice” no-fault insurance. As an insurance consumer, you can choose what type of coverage and protection you want when purchasing insurance for yourself and your family. But it’s important to know the difference. What you don’t know today can have grave consequences if you’re ever involved in a serious car accident in the future.
No-Fault or Limited-Tort Insurance
You can choose the no-fault or “limited tort” option, where you will file a claim and receive benefits from your insurance policy after an accident, regardless of who was at fault. Once you’ve exceeded your coverage, you can seek compensation from the at-fault party. The caveat? You’ll only be able to seek compensation for economic damages. “Limited tort” coverage means you’ve relinquished your rights to compensation for pain, suffering, and other non-economic damages unless your injuries meet specific criteria.
At-Fault or Full Tort Insurance
If you choose the full tort option of insurance, you retain the right to sue the at-fault driver for any damages after an accident. That includes your economic damages, such as medical expenses, personal property damages, lost wages, and other quantifiable costs, as well as non-economic damages. Why is this so important?
Unfortunately, car accidents aren’t always simple matters of some vehicle damage and a few cuts and bruises. Often, the injuries sustained in a car wreck can leave lasting effects on victims for months, years, and even a lifetime, resulting in both economic and non-economic damages. These non-economic damages can include physical pain, emotional anguish, loss of physical ability, loss of quality of life, PTSD, scarring, or other damages that can’t be readily or easily quantified. Compensation for these damages can be crucial to someone who may be impacted for life because of another driver’s negligence.
Why Don’t More People Choose Full Tort Coverage?
Why do people choose limited tort over full tort when it gives away some serious rights to compensation? The short answers:
- They didn’t understand the implications
- “It won’t happen to me” syndrome
- The premium costs are often less expensive
Most people purchase car insurance because they need it immediately. After all, all drivers are legally required to have a minimum amount of car insurance here in Pennsylvania. But because they don’t fully understand car insurance terms, what the concepts of full tort or limited tort mean, or their implications, they look at the premium cost and choose the lesser premium.
Limited tort insurance settlements are less costly for the insurance company. It costs insurance companies far more to litigate car accidents, especially those involving non-economic damages. Limited tort settlements are usually resolved through a more simplified claim process and reduce the probability of a lawsuit. Unfortunately, that’s not always in an accident victim’s best interests.
Drivers can be very short-sighted when it comes to their protection. The short-term savings in premium costs for limited tort coverage can be offset many times over in damages after a serious accident. With only limited tort coverage, a seriously injured victim can be left with ongoing costs related to the accident for years to come, if not a lifetime. Unfortunately, by the time that becomes apparent, it’s too late.
The bottom line is that car accidents can cause serious and long-term injuries and other damages. With the limitations of no-fault coverage, you are giving up serious rights to compensation after an accident. A full tort policy may be more expensive now, but you may be paying much more out of pocket without it, especially if you sustain serious injuries in an accident.
At Silver & Silver, our experienced Broomall accident lawyers are dedicated to getting you the compensation you deserve after a car wreck, whether you have limited tort or full tort insurance coverage. We offer a free consultation to review your case so you can have peace of mind knowing you have a legal advocate on your side. Call us at (610) 638-7255 or fill out our contact form to schedule an appointment. You pay no attorney fees unless we recover compensation on your behalf.
Disclosure:
This website is designed to provide only general information. The information presented on this website is not formal legal advice. You should not rely on any general information from any source for making legal decisions. Each legal matter is unique and requires specific attention from a qualified and experienced attorney. Unless a representation agreement has been signed with the Law Offices of Silver and Silver, we are not your legal representatives.
