What Does Limmited Tort Auto Insurance Cover?

When discussing limited-tort or full-tort coverage options, it is important to understand just what the term "tort" means. By definition, a tort is described as a civil wrong or injury that is caused by another person. In such cases, the person who is injured has the right to legally sue the person who is responsible for causing the injury. Torts, or civil wrongs, can be both intentional and unintentional. In cases where torts are found to be intentional, the violator may be hit with both criminal and civil charges.

By choosing a limited tort policy, you can potentially lower your auto-insurance premium by about 15 percent. Limited tort also allows for reimbursement of medical expenses and personal out-of-pocket expenses that have come about as a direct result of an auto accident. These reimbursements apply to you and your passengers, and the recovery of such expenses is determined by the amounts agreed upon in the signed copy of your individual policy.

What a limited tort policy does not cover can be catastrophic to an injured party, and should be taken under careful consideration before signing. If you are involved in an auto accident, the limited tort system reduces your rights, and the rights of other members of your household, to pursue financial compensation for injuries that are related to the accident. In other words, you will not be able to sue for pain and suffering, other non-monetary damages, or any amount of money above or beyond your policy limitations. But in the same respect, you are also protected from being sued. If you choose "full tort," which will allow you to sue for pain and suffering, another driver can then file such suits against you.

There are some exceptions that will allow you and other members of your household to sue if you are in an accident and carry a limited tort policy. Serious injuries that involve disfigurement, severe physical impairments and death are exempt from the limited-tort restrictions. Therefore, if you have received injuries in an auto accident that fit into the category of "serious injury," you and your family can file a court claim to seek further compensation.

The term "serious injury" is often not clarified by insurance companies, which frequently leaves it up to a court to decide if your injuries fall into this category. By choosing the "full-tort" option instead of the limited tort, you will not only preserve your right to sue, but also save yourself the misery of having to have the term "severe injuries" defined.