Prenatt Law Office

What Is Limited Tort?

"Limited tort" (as opposed to "full tort") effectively restricts your right to receive reasonable compensation, not from your own insurance company, but from the insurance company who insures the person who caused the accident. The legal term "limited tort," when attached to an auto insurance policy, means that you and your resident family members have a limited or restricted right to sue for injuries, regardless of who is at fault in an accident. One of the reasons why people select the "limited tort" auto policy is because it is cheaper. Another reason is that insurance agents often do not fully explain to consumers the limits of their coverage. Consumers should be told in crystal clear language that by purchasing only "limited tort" for a reduced premium - the amount of which should be clearly specified - they will give up their rights to sue for certain injuries even if they are not at fault in an accident. Too many times consumers honestly believe that they have full coverage, only to find out - usually after an accident - that they don't. Insurance companies should be held accountable to consumers if the policy does not clearly and prominently warn the consumer that the amount and type of insurance which they receive may be something less than "full", "complete" or "unlimited".

What is Uninsured and Underinsured Motorist Coverage?

Simply stated, uninsured motorist coverage allows the victim of an automobile accident to seek recovery from his or her own insurance company in the event that the person who caused the accident does not have insurance. Underinsured motorist coverage allows the victim of an automobile accident to seek recovery from his or her own insurance company in the event that the driver who caused the accident does not have enough insurance to compensate the victim. The law permits consumers to have the same amount of uninsured and underinsured motorist coverage as they have liability coverage, but not more than the amount of liability coverage. Yet, too often, consumers unknowingly receive severely inadequate uninsured and underinsured motorist coverage, especially when the liability coverage that was selected is relatively high. Uninsured and underinsured motorist coverage are relatively inexpensive, yet insurance companies seem to be reluctant to provide these types of coverage..