Full Tort Versus Limited Tort Insurance Policies

Understanding Economic & Non-Economic Damages

When deciding between full tort or limited tort insurance, you may be wondering “does it really matter?”. The answer is a resounding yes! This decision can significantly impact your life and assets. In this article, we’ll explore key factors to consider, including economic and non-economic damages, and what you can expect if an accident occurs.

When Injured in an Accident

If you’re injured in an accident, you’ll soon notice the key differences between full tort and limited tort benefits. Understanding economic and non-economic damages can be confusing, leading many people to shy away from learning about them. At Pyfer Reese, we have the experience to help you navigate these complexities.

Economic vs Non-Economic Damages

Having full tort coverage on your car insurance policy is crucial, rather than opting for limited tort. Don’t be misled by the minimal savings on premiums; it’s worth considering. Request quotes for both options from your auto carrier, and you’ll be better equipped to make an informed choice. Often, choosing full tort proves to be the smarter decision.

Economic Damages

Economic damages such as wage loss, out of pocket medicals are not impacted by your tort option on your policy of car insurance. It does not matter whether you have full tort or limited tort. Economic damages from the accident that is not your fault are generally recoverable.

Non-Economic Damages

Non-economic damages such as pain, suffering, are impacted by your tort option on your policy of car insurance. Generally, individuals with limited tort coverage are precluded from recovering for non-economic damages. 

Exceptions to the General Rules

On occasion there are exceptions to these general guidelines. These exceptions can be found within Pennsylvania law at 75 Pa. Cons. Stat. § 1705(d). They are the following:

1. A drunk driver caused the accident;

• After an accident with another vehicle, if the driver is convicted of a DUI or accepts Accelerated Rehabilitative Disposition (ARD), your limited tort will become full tort coverage. However, if the driver dies because of the accident, your limited tort will still apply regardless of their intoxication.

2. An uninsured driver caused the accident.

3. The person who caused the accident was driving a vehicle registered in a state outside of Pennsylvania;

• If the vehicle that hits you is registered in a different state, your limited tort is changed to full tort coverage.
• Whether you’re driving or riding in a commercial vehicle, your limited tort coverage will become full tort in the event of an accident. This includes driving company cars or trucks, as well as riding on buses and other public transportation.

4. The injured party was a passenger on a commercial vehicle or motorcycle;

5. The injured party was a pedestrian or bicyclist injured by an automobile;

OR

6. The injured party sustained a “serious injury” or a serious impairment of a body function.

• “Serious injury” under the Motor Vehicle Financial Responsibility Law (MVFRL) is defined as a personal injury resulting in death, serious impairment of body function or permanent serious disfigurement.”
• “Serious impairment of body function” analysis goes like this:

1. What body function, if any; was impaired, because of injuries sustained in an accident?

2. Was the impairment of the body function serious?

• Focus is not on the injuries themselves  but on how injuries affected a particular body function
• Need medical testimony to establish the existence, extent and permanency of the impairment
• Factors to consider to discover if the impairment was “serious”:

a.  Focus on how the injuries affected the bodily function

b. The extent of the impairment

c. The duration of the impairment

d. The treatment required to correct the impairment, and

e. Any other relevant factors

f. Impairment need not be permanent to be serious

Navigating Your Case

If you would like personal help in your current legal situation contact Gabriella H. Farhat the team at Pyfer Reese today for a complimentary consultation. Being in an accident is confusing, scary, and stressful; but you don’t have to figure everything out on your own. Before you speak to the insurance company or appear in court, make sure you know your rights. 

This article is meant to provide general information for education purposes only and is no way legal advice or guidance. To get legal advice and guidance you must speak to one of our attorneys directly with the specific details of your unique case.