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Understanding Your Tort Choices

As you decide which Liability coverage you want under your Personal Auto insurance policy, you will be asked to elect either “limited-tort” or “full-tort.” The following information is intended to explain what those two terms mean, and the implications of your choice.

THE CHOICES

  • LIMITED-TORT

Limits your right to sue for non-economic damages (pain and suffering), except in cases of serious injury. This option qualifies you for a reduction in premium.

  • FULL-TORT

Does not limit your right to sue. You do not qualify for a reduced premium if you elect this option.

If I choose limited-tort…

WHAT AM I GIVING UP?

You are giving up the right to sue for “pain and suffering” except in cases of serious injury. The law defines serious injury as death, serious impairment of body function, or permanent/serious disfigurement. If your injury is determined to be serious, you will keep your right to sue for “pain and suffering” even with limited-tort.

ARE THERE ANY OTHER EXCEPTIONS APART FROM SERIOUS INJURY?

Yes, common examples are when the responsible driver is convicted of driving under the influence or has a vehicle registered in another state. As you decide which Liability coverage you want under your Personal Auto insurance policy, you will be asked whether you want to elect “limited-tort” or “full-tort.” The following information is intended to explain what those two terms mean, and the implications of choosing one.

CAN I STILL SUE FOR ECONOMIC DAMAGES?

Yes. You can still sue to recover damages for unpaid medical bills, un-reimbursed lost wages, or other out-of-pocket expenses.

CAN I STILL BE SUED BY SOMEONE ELSE?

Yes. Your selection of limited-tort applies only to your ability to sue others under your policy. If you are at fault in an accident, the injured parties can seek recovery from you for any economic damages. Their ability to sue you for pain and suffering is determined by their tort selection.

WHAT DO I GET IN RETURN?

You should receive a reduction in premium for choosing limited-tort. The reduction you receive could be up to a 40% of the premium you pay for bodily injury, first-party benefits, and uninsured/underinsured motorist coverages.

DO THESE SAVINGS APPLY TO OTHER PARTS OF MY AUTO COVERAGE?

No. The premium for other coverages under your Personal Auto insurance policy, such as Comprehensive and Collision, are not affected by your tort selection.

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This info was provided by IABforME.com and made available here by AFS Insurance & Financial Services

This material is for general informational purposes only. All statements are subject to the terms, exclusions and conditions of the applicable policy. In all instances, current policy contract language prevails. Products, services and discounts referenced herein are not available in all states or in all underwriting companies. Coverage is subject to individual policyholders meeting our underwriting qualifications and state availability.

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