Car accidents can be an expensive proposition. A minor incident might cost only a couple hundred dollars in damage and leave everyone involved unharmed — but that’s not the average. According to the Insurance Information Institute, the average cost of a bodily injury claim in 2021 is $22,734, with the average property damage claim clocking in at $5,314. But even this statistic is misleading, as accidents — and their aftereffects — are often unique. The total cost of car accidents in the United States, including property damage and medical expenses, was over $75 billion in 2017, and that number is only getting higher.
A disabling injury can cost you $100,000 or more in damages. Fatalities can cost $1.75 million or more. The economic, physical, and mental impact of a car accident can be brutal and long-lasting — only one of the many reasons why auto insurance is mandatory everywhere in the United States.
Every state has its own unique insurance laws, and Pennsylvania is no different. Pennsylvania drivers have what is called “tort insurance,” which often comes hand-in-hand with “no-fault” insurance. This article will explain both things in detail and what they mean to Pennsylvania motorists.
Pennsylvania and Tort Insurance
Pennsylvania is what’s called a “no-fault” state. In most states, when you’re injured in an accident, you’re legally permitted to file a claim against the at-fault driver, which is usually paid for by the driver’s insurance company. This is rarely an easy process, and can take months of gathering and presenting evidence. Worse, at the end of all that, the other driver’s insurance company can deny the claim, which leaves you with no recourse but to file a lawsuit.
In a “no-fault” state, the process is somewhat different. In no-fault states, the insurance company of the driver who was injured pays for the claim, regardless of who caused the accident. Under Pennsylvania law specifically, the injured party’s car insurance coverage pays for medical bills and other losses, up to the coverage limits. If the injured party wants to file a lawsuit for further damages, such as pain and suffering, the injuries must meet certain criteria set by Pennsylvania law — but, unlike some no-fault states, those lawsuits can still be filed against the at-fault driver, which can be extremely expensive.
This brings us to Pennsylvania tort insurance, which is designed to account for these lawsuits and compensate for those additional expenses.
Full Tort vs Limited Tort
Under “limited tort” coverage, the rights of the injured party to receive financial compensations for things like mental trauma, injuries, etc. is (as the title implies) limited. Under limited tort, a person may file a claim for medical treatment and out-of-pocket losses incurred in the accident, but may not receive compensation for pain and suffering unless they qualify as “serious.” Serious injuries usually means something with ongoing effects, such as impaired function of limbs or permanent disfigurement.
“Full tort” insurance is more expensive, but gives the injured party unlimited rights when it comes to seeking further compensation for injuries and losses. The claimant may attempt to recover medical treatment and out-of-pocket costs as well as pain and suffering and other non-monetary losses. Under full tort coverage, the “serious” qualification is not relevant as it is under limited tort.
Do You Need Tort Insurance?
Does the addition of tort insurance make car insurance more expensive? Yes and no. As Kristine Lee at The Zebra mentions, the average motorist pays $1,266 per year in auto insurance, which is $263 less than the national average. So even with the inclusion of tort insurance, a Pennsylvania driver pays less than most when it comes to car insurance. Of course, that’s only an average, and can vary widely depending on other factors, such as age, geographical location, driving record, and the insurance company you choose to work with — Travelers, for example, has some of the best cheap car insurance in Pennsylvania, while State Farm is one of the most expensive.. Pennsylvania car insurance is already below average, and finding truly cheap Pennsylvania car insurance isn’t hard with a little homework and some online tools for comparing quotes.
But can you get away with not having tort insurance? The answer once again is “it depends.” Tort coverage of some kind is mandatory in Pennsylvania, though you don’t necessarily have to pay for full coverage. Pennsylvania drivers can take out minimum liability coverage, which is considerably cheaper than full — an average of $398 a year, fully 74% lower than the national average — but their policy must include first-party benefits (FPB), also known as PIP coverage. A comprehensive plan with a $1,000 deductible will run you about $1,093 a year, depending on circumstances.
Mandatory tort coverage does set Pennsylvania apart from some other states, but it’s designed to make sure motorists have coverage for all aspects of an accident, whether it be monetary losses or emotional or physical damages.
