After a car accident, one of the most important parties to follow up with is your motor vehicle insurance service provider. When you have a clear understanding of the policies used by your insurance, you can get relevant benefits in relation to the car accident. There are numerous vehicle insurance policies instituted in various places. Pennsylvania, for instance, warrants the use of a no-fault insurance policy.
How is Pennsylvania a no-fault state, and how should that impact your choice of an insurance provider? In a real sense, Pennsylvania is one of a dozen states that institute the no-fault type of motor vehicle insurance. Concurrently, the state also allows fault insurance. Making Pennsylvania one of a few hybrid states that allow bot fault and no-fault car insurance policies. To understand this system and the best policy for you, you can discuss the options with your attorney.
WHAT IS A NO-FAULT INSURANCE POLICY?
Your insurance service provider covers your medical bills under the medical benefits or personal injury protection (PIP) plan in a no-fault policy. Your insurer can also compensate you for any damages or losses incurred in accordance with the policy.
No-fault policies are seen as ideal as drivers involved in car accidents often need money to sort any medical bills. Additionally, if the accident victim is unproductive for a certain time result from the accident, the insurance provider can provide compensation.
The other major feature of no-fault insurance policies is you don’t have to prove who caused the accident. As the name no-fault illustrates, the insurance provider is expected to cover any injuries regardless of who caused the accident.
No-fault policies are also known as limited tort. This is major because you have a significantly limited ability to seek legal action against the other party. Since you are dealing directly with your insurance, any legal matter – such as seeking compensation for any loss or damage, highly unlikely.
There are expectations where you are allowed to sue the other party. The exception is you have to be seriously hurt in accordance with the state laws. Some of the severe injuries that could bypass the limited tort policy are;
- Disfigurement resulting from the accident
- Temporary or permanent disability
- Significant property damage, loss of wages, and excessive medical bills
IS NO-FAULT BETTER A FAULT POLICY?
As mentioned above, Pennsylvania is considered one of a few hybrid states. These states allow both full tort (fault policy) and limited tort (no-fault policy). As a driver and car owner, it’s important to understand the policy you are choosing.
In most cases, you’ll rarely see the terms fault and no-fault when applying for your insurance. Alternatively, insurance companies will often use the terms full tort and limited tort. Limited tort simply means no-fault, while full tort implies fault policies.
In full tort, you can ensure more people are in the car, and in the case of an accident, you have unlimited rights to file a lawsuit with the at-fault party. Full tort policies are characteristically more expensive. Additionally, you can sue the other driver for any damages in fault policies, regardless of how severe the injures are. However, these full tort policies need you to prove the other driver was at fault. As the name suggests, you must provide the at-fault party accompanied with relevant evidence.
So, which is better; full tort or limited tort? From the above information, it is evident these two policies have different strengths. While limited tort insurance policies are relatively cheaper and affordable, they only cover the driver. Additionally, these policies offer quick payouts and limit your ability to follow with a lawsuit unless in particular circumstances.
Full tort, on the other hand, is a little more expensive in comparison. These policies can cover more than just the driver, and you can seek legal recourse for any damage. And while you have to provide evidence, you can sue for any amount.
In the end, it boils down to personal preference. A great way to make the right choice is to consult with your lawyer on the right policy for you. You can do this before deciding the coverage to choose as you’re not allowed to change it until the contract period is over. Consult with Stambaugh Law for the best motor vehicle insurance policy for you.