Getting Pennsylvania auto insurance can hurt your budget, especially if you want all the types of coverage in it. Most of the time, vehicle owners see tort coverage as an area where they can save and slash down the premium rates. But is this really advisable? From the long-term perspective, is it a smart decision to deduct tort coverage from the insurance policy? How do you decide whether to go for full tort or limited tort coverage? First things first, you need to know what tort is under Pennsylvania auto insurance laws.
Tort is loosely defined any action the causes damage or injury to another, when such action is not covered by a contractual obligation between the two parties. In tort cases, the law allows the injured party to collect damages from the injuring party.
There are many differences between full tort and limited tort coverage. The most striking of these differences is the implication in terms of protection. Under full tort coverage, you reserve all your rights in the event of damage or injury caused by an unexpected event. Under limited tort coverage, you give up some of these rights.
When it comes to the premium rates, there is also a major difference. Full tort coverage naturally comes with a higher premium than limited tort coverage. The average increase in the premium rates for including full tort coverage is anywhere from 12 % to 20 % greater than if you would select limited tort coverage.
The set of benefits is also something that you should look into. Full tort coverage entitles you to file a claim for whatever loss or injury that you may suffer due to a vehicular accident. And if the claim is denied by the insurance company, you may bring a lawsuit against your insurer as an ultimate recourse. In contrast, limited tort coverage only allows the insured to be compensated to a limited extent in case of a vehicular accident. The only time the owner can collect the entire amount of damage is when the injury is of a serious nature.
But what amounts to “serious injury” and what does not? Pennsylvania auto insurance laws also loosely define this. Under the law, an injury is considered serious if it results in any of the following: 1) death; 2) serious impairment of a bodily function; or, 3) permanent serious disfigurement. In case of conflict in the interpretation of whether or not a certain injury is serious, parties usually end up in court. The court then decided on a case-to-case basis.
Recent trends in court decision have been more in favor of insurance companies, especially if the insurance policy involved has limited tort option. However, it should be kept in mind that the court decides individual cases according to their merits. This is why it is possible to be awarded full claims despite the fact that a vehicle owner has limited tort coverage. At the end of the day, however, the important thing to decide on is whether or not you are willing to go through all these trouble or if you think the trouble is not worth the savings.
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