Full or limited tort car insurance?

My last article explained how to save money on car insurance. I purposely left out the subject of choosing which tort you should carry. Choosing limited tort over full tort can save you 15% on car insurance.

The laws of the commonwealth of Pennsylvania give you the right to choose either of the following two options:

Limited tort –

This form of insurance limits your right and the right of members of your household to seek financial compensation for injuries caused by other drivers. Under this form of insurance, you and other household members covered under this policy may seek recovery for all medical and other out-of-pocket expenses, but not for pain and suffering or other nonmonetary damages unless the injuries suffered fall within the definition of "serious injury," as set forth in the policy, or unless one of several other exceptions noted in the policy applies.

Full tort –

This form of insurance allows you to maintain an unrestricted right for yourself and other members of your household to seek financial compensation for injuries caused by other drivers. Under this form of insurance, you and other household members covered under this policy may seek recovery for all medical and other out-of-pocket expenses and may also seek financial compensation for pain and suffering or other nonmonetary damages as a result of injury caused by other drivers.

Pretty simple right? Under full tort, you can bring a lawsuit against someone when you are involved in an automobile accident at any time. Under limited tort, you can bring a lawsuit for all medical and other out-of-pocket expenses, but not for pain and suffering unless the injuries suffered fall within the definition of "serious injury."

Serious injury means a personal injury resulting in death, serious impairment of body function or permanent serious disfigurement. Exceptions in the policy that give you the same rights as full tort: When the person responsible is convicted of driving under the influence; is driving a vehicle registered in another state; caused the wreck intentionally, or is not insured.

Think about these points before I give you my opinion on the subject. Some accidents are not the other driver's fault. Some people who are responsible for the accident have minimum insurance and no assets.

In my younger days I played basketball with a group of attorneys. Attorneys like to make fun of insurance agents. After being playfully picked on for a few weeks, I asked them how much fun it is to bring a lawsuit against someone with no money. They stopped picking on me.

In my opinion, paying an extra premium for the right to bring a lawsuit for pain and suffering when not experiencing a serious injury is not a good financial decision.

The law was passed in 1990, and was designed to limit lawsuits and keep insurance rates lower. At the time of passing Philadelphia had so many automobile lawsuits the cost of insurance was reaching the point of becoming unaffordable. Many citizens deciding to just go without it. In the 33 years since passing the law, it works.

While rates in Pennsylvania may not seem low, they are within a few dollars of the national average of $2,014. Those of us living in western Pennsylvania are paying much less.

I advise you to make sure you have the correct amount of liability insurance to protect your assets. Make sure you have medical, extraordinary medical and loss of income coverage to protect you, no matter who is responsible for the accident. If after that you have extra money, then go for full tort.

If you have any questions please text me at 724-222-5600.

Bob Hollick is a State Farm Insurance agent based in Washington. His column appears every other Friday in the Observer-Reporter.