insurance

Limited Tort

An auto insurance option available in some states that restricts a policyholder's right to sue for pain and suffering damages after an accident in exchange for lower premium costs. Under limited tort, you can still recover economic losses like medical bills and lost wages, but cannot seek compensation for non-economic damages except in cases of serious injury.

Example

“Maria selected limited tort coverage to reduce her auto insurance premiums, understanding she gave up the right to sue for pain and suffering unless seriously injured.”

Memory Tip

Limited TORT = Limited righT to sue - you're limiting your legal options for a TORT (civil wrong) in exchange for saving money on premiums.

Why It Matters

This choice significantly impacts both your insurance costs and legal rights after an accident. Choosing limited tort can save hundreds of dollars annually in premiums, but it may leave you unable to recover thousands in pain and suffering damages if injured in an accident caused by someone else.

Common Misconception

People often believe limited tort prevents them from suing entirely or recovering any damages. Actually, you can still sue for all economic damages like medical bills, lost wages, and property damage, and you can sue for pain and suffering if you meet the 'serious injury' threshold defined by state law.

In Practice

In Pennsylvania, Tom chooses limited tort and saves $400 per year on his auto insurance premiums. After being rear-ended, he suffers whiplash and misses two weeks of work. He can recover his $3,000 in medical bills and $2,000 in lost wages, but cannot sue for the $10,000 in pain and suffering damages he might have recovered under full tort, unless his injuries meet the serious injury threshold such as permanent disfigurement or broken bones.

Etymology

The term combines 'limited' (restricted) with 'tort,' which comes from Latin 'tortus' meaning twisted or wrong, referring to civil wrongs that cause harm and are subject to legal remedy.

Common Misspellings

Limited TorteLimitted TortLimited Tort CoverageLimited Court

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