Limited Tort Insurance

What is Limited Tort Insurance?

Limited tort insurance is a  car insurance option in Pennsylvania that prevents the injured party from filing a personal injury claim against the at-fault party for pain and suffering. 

According to the Insurance Information Institute (III), limited tort insurance allows policyholders “to save on their premiums by agreeing to limit their right to sue for non-economic damages, except in cases of serious injury.” As such, it restricts the ability of a policy holder to seek compensation for non-economic damages, like pain and suffering. For example, if Sandra has a limited tort insurance, and is in a car accident, she can only sue the person who injures her for her injuries and the car, not any emotional distress. 

Limited tort insurance allows for cost savings with lower premiums compared to full tort insurance because they agree to limit their rights to sue for non-economic damages, while still allowing an injured party to sue for economic damages. However, this restricts compensation for the policyholder.  Understanding limited tort insurance is essential for drivers evaluating their auto insurance options. It involves balancing the benefits of lower premiums against the potential limitations in legal recourse for non-economic damages, requiring careful consideration of individual risk tolerance and financial protection needs. Legal professionals and insurance agents can provide guidance to help policyholders make informed decisions about their coverage choices.