Differences In Tort And Non Tort States

Understanding what type of coverage is available under the tort auto insurance system is very important. This can greatly help you in making a decision on what the most ideal auto insurance system is for you and for your family.

Tort System vs. Non-Tort System

Most people often think that when they are of the tort auto insurance system, they will have to purchase another insurance coverage. However, this is what makes the tort auto insurance system different from the non-tort system. You don’t have to buy an extra coverage from your auto insurance firm just to pay for medical bills.

The tort auto insurance system does not have any restriction as regards one’s right to seek ‘pain and suffering’. The only requirements to collect claims from injuries are the damages that are above and beyond your medical bills and the injuries you received from the accident and the driver who is at-fault. Also, unlike no-fault, there are no thresholds or dollar figures that you need to reach with your medical damages. Simply put, you can easily make claims for ‘pain and suffering’ damages from dollar ones.

A tort insurance system does not limit you on choosing the type of reimbursement you ask from the at-fault driver. You can still use your own medical payment coverage or health insurance, of course, bound by the insurance policy’s terms.

In the event that a dispute is raised over who has caused the damage, or if the driver has no auto insurance, the investigating team of the insurance companies take over. In the end, the fault is determined and the claim is eventually settled. Aside from following the standard processing procedure on claims, you can also seek payments for damages in varied options. For example, if the driver at fault is not covered by insurance, the injured party can access his own health insurance.

There are also some drivers who carry another type of coverage called “uninsured or underinsured motorist”. This means that their own insurance company will have to shoulder the damages that result from accidents generally caused by an uninsured driver.

Both the tort and non-tort auto insurance system have their own share of pros and cons. It is advised that you seek the advice of insurance professionals to help you choose which system is applicable to you.

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Last Updated: November 10, 2009