Here is our last article for our little auto insurance series. We will forgo our scenario and just talk this one through. This last part is about tort coverage, the right to sue - which we know has become something a bit taboo over the years! But we are hopeful to shed some light here as it's not necessarily something we should ignore or stray away from when it comes to protecting ourselves and our families.
Tort laws in auto insurance come into play when one driver wrongfully causes harm to another driver or passenger. This can be as simple as a vehicle running a stop sign and hitting another vehicle at an intersection. Of course, the at-fault driver's auto insurance is responsible when it comes to the liability, medical injuries and property damages, but the other driver can decide to sue depending on the extent of the accident.
When you think of suing someone, we all think about going to court. However, insurance companies try to settle the claim before they get that far advanced. Carrying the proper option for you is pivotal - it's the difference between a large monetary settlement or a typical payout of coverages in an accident. You carry the options of tort for attempting to recoup damages when you are involved in a not-at-fault accident as well as protecting you against having to pay out of pocket for an at-fault accident with injuries and damages.
So now that the background of tort is explained, in Pennsylvania tort is mandatory, but you have two options of tort coverage: Full or Limited Tort. Full Tort means you are keeping or retaining your right to sue for non-monetary damages, including pain & suffering. Limited Tort is where you are waiving that right and cannot sue for anything beyond what their policy covers.
I know what you're thinking -- there's a huge price difference involved! Yes, Full Tort is higher premium than Limited Tort, however if your welfare, standard of living and/or well-being has been substantially changed due to the negligence of someone else, wouldn't you at least want to have the option of gaining some monetary compensation?
The right choice for you depends on where you are financially. The price for more coverage (full tort) is higher but you hold all the risk if you choose less coverage (limited tort). Going back to the example of another driver running a stop sign, their insurance policy will pay for your injuries and damage to your vehicle; no qualms about that. However, what if your injuries change your ability to perform the same duties at work as before the accident? Now, it's possible your job title AND income decreases causing you & your family's quality of life to be affected. Would you want the option to sue now?
There is a lot to think about especially if you are fortunate to never be involved in a serious auto accident, you don't benefit from the extra money you pay for additional coverage. You do, however, give the risk to your auto insurance. The consequences are only fully grasped if in a severe accident. We understand the dilemma & we hope our education assists in your decision.
The agents at Snyder Insurance Agency are here to help! We can talk different scenarios through & assist you with making the right choice for your tailored coverage. We want you to be comfortable with your coverage as well as not cause financial burden when it comes to premium payments. Always feel free to ask us our thoughts!
Disclaimer : This article explains general knowledge for the purpose of education & information. Snyder Insurance Agency is not providing nor guaranteeing any insurance coverage within the above mentioned. Any & all claims, or coverage discrepancies and decisions will be an obligation of the insurance company at the time of loss.
