Full tort insurance options and limited tort insurance are instituted by the state of Pennsylvania in an effort to reduce the number of pain and suffering lawsuits in Pennsylvania courts. Concerned about the high rate of auto insurance, Pennsylvania imposed a mandatory Personal Protection (PIP) protection in an attempt to reduce the number of lawsuits resulting from car accidents. PIP Insurance covers the medical bills of drivers involved in accidents, regardless of who is wrong. The idea behind the creation of PIP insurance is that it will reduce the number of lawsuits of 'pain and suffering' or 'loss', thereby reducing the payment of insurance companies and ultimately reducing insurance premiums.
Individuals who now purchase insurance in Pennsylvania are classified as "limited tort" or "full tort". Tort is a legal term which means "civil violation - in civil law, the wrong act that causes damage can be sought by the aggrieved party."
In Pennsylvania, the insurer offers a full range of abuses that give people the ability to prosecute in court for all damages, and the limited scope of punishment that "limits" the ability to demand pain and suffering. Full lawsuit and limited tort coverage only apply in situations where the driver or passenger has been injured in an accident that is not the driver's fault. The victim then has the option to file a lawsuit against a guilty driver to sue in court due to unpaid medical bills, property damage, loss of income, pain, and suffering.
Limited tort coverage is cheaper, making it attractive to consumers as a way to save on their insurance premiums. This option will save you about 15% in premiums every year. However, by choosing a limited tort, consumers give up the ability to demand "pain and suffering" unless the injury suffered is considered a "serious injury" because the term is defined in a standard car insurance policy in Pennsylvania. Unfortunately, consumers may not be reading this long policy before choosing "unlimited tort" or "full tort" and consequently, they may be misled by the terms of the election. In particular, "serious injury" is defined as "death, significant disability or impaired body function." Consequently, most consumers who choose "limited tort" believe it's natural to only make claims for "pain and suffering" if their injuries are serious, unaware that most insurance companies do not consider even a permanent injury to be "seriously injured" if the consumer does not dead, disabled or paralyzed. For example, the insurance operator will deny the claim for "pain and suffering" in which the injured victim has suffered a herniated disc or even a fracture.
Video Full tort and limited tort automobile insurance
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Source of the article : Wikipedia
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