There are other ways to save on your auto insurance premiums without sacrificing your legal rights and your family's safety.
In Pennsylvania, drivers may have a limited tort auto insurance policy or a full tort auto insurance policy. It is not uncommon for policyholders to be unsure of which type of policy they have, even though they have to sign a waiver to decline full tort coverage. We strongly recommend purchasing full tort coverage.
In a limited tort policy, your rights to bring a claim for compensation for your losses following a car accident may be limited to monetary losses. If you have limited tort coverage you usually cannot bring a claim for compensation for your non-monetary losses — such as pain and suffering — unless the injury is "serious." Pennsylvania law defines a serious injury as one that "results in death, serious impairment of a bodily function or permanent serious disfigurement."
The tort selection (full versus limited) that you make applies to you and to those members of your family that live with you. When you select limited tort coverage you are not just restricting your rights, you are restricting the rights of your spouse and children — even if they do not have driver's licenses.
Recoverable monetary losses may include medical bills, lost wages and repair costs to your vehicle. There are some exceptions to the prohibition from recovering for pain and suffering if you have limited tort coverage. One of the most commonly applicable exceptions is if the accident was caused by an intoxicated driver. Even if you have limited tort coverage you should still have your potential claim reviewed by a personal injury attorney.
The law does not define what constitutes a serious impairment of a bodily function or a permanent serious disfigurement, which can make it difficult to establish that you have suffered a "serious" injury and, therefore, difficult to recover compensation for pain and suffering even if you think your injury is serious.
A full tort policy does not have these limitations. If you have full tort coverage you have the right to bring a claim for compensation for all of your losses — including recovery for pain and suffering with no artificially imposed limit.
Do Not Waive Your Rights to Full Tort Protection
Since a limited tort policy impairs your ability to recover compensation for all of your injuries, why does anyone choose this type of policy? People usually choose limited tort coverage because they do not fully understand the scope of the restriction on their rights and because doing so will reduce their insurance premiums by a marginal amount. As discussed below, the "savings" from choosing the limited tort option can usually be achieved by increasing the deductibles on collision and/or comprehensive coverage on your car. We believe that, if premium dollars are a substantial issue for you, you and your family are better off if those dollars are spent protecting you and your loved ones than if they are spend reducing the deductible on coverage for your car.
You may be inclined to choose the limited tort policy because you have never been in an accident and don't believe you will ever need to recover non-monetary losses. All it takes is one car accident, however, to negate the relatively minor savings of a limited tort policy. Those who have never been in an accident before may not appreciate that even minor injuries can result in serious pain and suffering.
Saving on Car Insurance with Full Tort Protection
There are other ways to save on your auto insurance premiums without sacrificing your legal rights and your family's safety. These include:
Choosing a higher deductible. The deductible is the amount you pay before your insurance benefits kick-in. Raising your deductible to a higher amount can reduce the overall cost of your insurance. Just be sure to choose an amount you still can comfortably pay.
Combine insurance coverage. Insurance companies offer a discount if you have more than one policy with them. For example, you could bundle your homeowner's and auto policies all with the same insurer. You also can insure more than one car with the same company to get a discount on your rates.
Seek out discounts. Insurance companies give a variety of discounts for things such as having a clean driving record, staying with the same insurance company and having certain safety features on your car, like anti-lock brakes, anti-theft features and daytime running lamps. Discounts may be given for belonging to certain organizations (like Triple A), having a low-risk occupation and taking a defensive driving course. Insurers do not always advertise these discounts, so be sure to ask.
Conclusion
Selecting limited tort coverage will save a few dollars on insurance premiums at the expense of a severe restriction of your rights and the rights of you loved ones. Ask your insurance adjuster about other ways to save money on your insurance. As a public service, for no charge and with no obligation, our office is willing to review your insurance coverages with you to make sure that you understand the coverages you have and the options that are available to you. Please contact us if you have any questions.
