Two Different Types of States
When it comes to car insurance there are two different types of states, a tort state and a no-fault state. It is important to know the difference between the two and to know what your state falls under. This will aid you in selecting the best car insurance to meet your needs.
What is a Tort State?
Most states are tort states meaning in the event of an accident someone is found at fault. In certain cases, it could be more than one person who is at fault. The person/s found at fault is responsible for paying for medical bills and property damage to the other party involved. In these states liability insurance is typically required.
The states listed below are NOT tort states, all other states are:
In a tort state, there are two different types to choose from, limited or full.
If you decide a limited tort is the way to go when getting a car insurance policy it limits your options, hence the name. With a limited tort, you are waving your option to sue for pain and suffering unless the damages are extensive or permanent. However, by selecting a limited tort option you will save on your car insurance premiums. This option can leave you paying out-of-pocket for costs associated with the accident.
The full tort option, when getting your car insurance policy, gives you more options. In the event, your accident does cause more damage than the opposing parties insurance covers you have the option to sue, regardless if the damages are extensive or permanent. However, these premiums are typically more.
Living in a tort state may just require you to carry liability insurance, but this does not mean you shouldn’t look into additional coverages. In most cases, the minimum required coverage does not provide enough coverage to forgo additional policy options. We always recommend buying the most insurance you can afford. This will ensure your peace of mind.
What is the Best Option For Me?
Both, limited and full tort options, have pros and cons. It is up to you to decide which one will meet your budget and lifestyle the best.
Do you want to pay a lower premium and have more out-of-pocket costs? Then a limited tort might be the best decision for you.
Do you prefer to pay a higher premium, but less out-of-pocket expenses? Then a full tort might be the best decision for you.
Living in a tort state gives you options when it comes to car insurance. Yeah, you typically have to carry liability as a state-required minimum, but you aren't required to carry other types of car insurance. It gives you a little more freedom when it comes to choosing premiums. However, you always have the option to add additional coverages to your policy no matter what state you live in.
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