Do you know what kind of car insurance you or your plaintiff carries? Is it full tort or limited tort? Pennsylvania law permits a choice between two coverage options when selecting car insurance–limited tort and full tort. The most common insurance policy in Pennsylvania usually provides up to $15,000 per person and $30,000 maximum per incident to those injured in any motor vehicle accident. Remember, Pennsylvania is a “no-fault” state, meaning claims can be filed with one’s insurance company regardless of fault.
The Limited Tort Option
The most important consideration to remember when purchasing a limited tort auto policy is that in case of an accident, the insured can only receive monetary (economic) damages, unless an exception to the limited tort applies. In other words, absent an exception, you are not eligible to recover pain and suffering if you purchase a limited tort insurance policy. Thus, while cost effective, limited tort can effectively “limit” your recovery to monetary damages only. In the case of motor vehicle accidents, it is crucial to check the insurance policy that the plaintiff carries because that could significantly impact their recovery, and thus, the value of the case.
However, even limited tort insureds can recover non-economic damages if one of the following exceptions are met:
- if the claimant sustains a serious bodily injury
- if the driver of the other vehicle committed an intentional act that caused the injuries
- where the other driver’s vehicle is registered outside of PA
- the other driver had no insurance
- the claimant was either driving or riding in a commercial vehicle
- if the other driver gets convicted of DUI or accepts ARD
- the person covered by limited tort insurance is injured in an accident caused by a defect in the design, manufacturing, repair, or maintenance of a vehicle
Plaintiffs most often rely upon the “serious injury” exception to surpass (or circumvent) the limited tort threshold. The obvious question thus becomes – what is considered serious bodily injury? It has been defined as “death, serious impairment of bodily function, or permanent serious disfigurement.” There is a two-part test to determine if an injury is a serious impairment of bodily function: first, it must be determined if a significant bodily function was impaired because of the injuries sustained in an accident with a vehicle registered in Pennsylvania. The second inquiry deals with the seriousness of the impairment itself. As is clear, this is a fact and case specific inquiry.
Full Tort or Unlimited Tort Law Option
As opposed to limited tort, the full tort option permits recovery of both economic and non- economic damages. This means that the injured party can recover both monetary damages for medical expenses as well as compensation for pain and suffering. The severity of the injury does not matter for this tort option.
Under full tort, a claimant can recover medical expenses (there are limitations on this under the Pennsylvania Motor Vehicle Financial Responsibility Laws), lost wages, vehicle damages, as well as pain and suffering. Other household members of the insured who suffered the injury could seek recovery for all medical and other out-of-pocket expenses as well.
As a matter of public policy, children enjoy unlimited tort law protection. Owners of uninsured registered vehicles are entitled to full tort protection if they are injured as pedestrians. A person who does not own a currently registered private passenger motor vehicle or does not qualify as an insured under a policy covering such a vehicle reaps the benefits of full tort law protection as well. As far as comparing the two types of policies is concerned, the only potential detriment of an unlimited tort policy is that the insurance premium is higher than it would be under a limited tort policy.
As defense attorneys representing TPAs and insurance companies, confirming the tort selection of a plaintiff or claimant is crucial. If a plaintiff or claimant chose the limited tort option, it is their burden to prove that one of the exceptions applies–absent an exception, their recovery is limited.
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