It is vital that drivers be aware of the consequences of choices they make concerning their insurance policies. In Pennsylvania, the right to sue in the event of a car accident is affected by the type of car insurance chosen, full tort or limited tort. It is one of three states (the others are New Jersey and Kentucky) to give drivers the option to choose either a full or limited tort. Interestingly, under Pennsylvania law, the full tort or limited tort choice considers the individual, spouses, children, other minors in the custody of the individual, and other relatives living in the household to be insured. It is important to understand the major differences between the two since the entire household may be bound by this choice.
First, the full tort option is described as offering “an unrestricted right for you and the members of your household to seek financial compensation for injuries caused by other drivers” (§1705(a)(1)(B)). Under a full tort policy, individuals may seek recovery for not only medical and other out-of-pocket expenses but also for pain and suffering and other nonmonetary damages, regardless of whether the injuries are severe. Unless indicated otherwise by the insured individual upon choosing a policy, full tort coverage will be provided, and the corresponding premium will apply (§1705(D)). With the full tort option, you can also retain full tort rights in Pennsylvania as a pedestrian struck by a vehicle or a passenger injured in a commercial vehicle such as a taxi or a bus.
Conversely, the limited tort option “limits your right and the right of members of your household to seek financial compensation for injuries caused by other drivers” (75 Pa.C.S. §1705(a)(1)(A)). Essentially, those covered by limited tort policies forfeit the right to sue for pain and suffering. However, in situations where the injuries may be defined as serious, the law allows damages for pain and suffering or other nonmonetary damages to potentially be recovered, depending on the policy. This typically includes situations where a person suffered serious impairment, permanent damage, or limb loss. If there is a question as to whether the injury is truly serious, this could be left to a jury to determine. Even if an individual chooses limited tort, there are still situations in which a full recovery from even noneconomic losses suffered could be pursued, so long as it can be determined that injuries suffered met the serious threshold. However, it is safer to opt for full tort, as that ensures there will never be a need for any jury to determine whether injuries are serious.
There are a few other exceptions wherein a person with limited tort coverage could pursue damages against the driver at fault, such as the following:
(1) the driver is found to have been under the influence at the time of the accident,
(2) the driver is operating a vehicle registered in another state,
(3) the driver intended to cause injury to himself or others, or
(4) the driver is driving without insurance coverage.
Often, the key issue in making a choice is the price difference between full tort and limited tort. Drivers can save up to an estimated 40% on their auto insurance premium if they opt for limited tort coverage. However, in case of an accident, those with full tort coverage wield an unrestricted right to sue, which may return more in damages. Drivers on a budget may elect the limited tort option in the short term but can change this decision as financial situations evolve. Drivers should carefully consider whether they are willing to risk forfeiting their rights in the event of a serious accident in exchange for a cheaper premium.
Families may wonder which option they should choose and what they should choose for their child who has just gotten their license. First, minors will be considered insured if in the custody of “either the named insured or relative of the named insured” and living in the same household as the named insured. Therefore, parents should take note that their choice may be binding on their children. It is a smart choice for those with families to consider full tort so they can attempt to receive damages for pain and suffering and lost wages in addition to medical expenses in the event of a horrible accident.
Moreover, while younger drivers typically have more expensive premiums, and it may be more appealing to choose limited tort for the costs, parents should be aware of the alarming statistics involving young drivers and auto accidents. Statistics from AAA indicate that the youngest drivers (ages 16-17) have the highest rates of crash involvement, so it may be wise to take precautions and ensure the young driver is fully protected. Further, the CDC has warned drivers aged 16-19 are three times more likely than their 20-year-old counterparts to be involved in a fatal car accident. It may be worth a higher premium to fully insure a young driver if it is financially feasible.
How much does this choice really matter? Unfortunately, the statistics surrounding crashes are daunting. According to PennDOT, in 2022 alone, there were approximately 115,900 crashes in Pennsylvania, ranging from those with just property damage to fatal crashes. In total, these crashes cost $29,344,951,422, equating to $2,262 for every man, woman, and child in Pennsylvania. Serious crashes can be expensive, and major injuries can lead to hefty medical bills, property damage, and emotional distress.
Overall, unless there is a strong financial reason to opt for limited tort, drivers would be best advised to choose full tort in case of an unfortunate, serious accident when they will surely want to unrestrictedly seek damages.
