Full Tort vs. Limited Tort in Car Insurance: What’s the Difference?

Tort in car insurance is a system of determining fault and responsibility for damages after a car accident. State law determines tort systems, with tort liability systems giving drivers the right to sue for medical expenses, pain, and suffering. In states with limited-tort coverage, the law limits what you can sue the at-fault driver for.1

Here are the differences between full- and limited-tort insurance and how your state’s laws may affect your legal recourse after a car accident.

Full tort vs. limited tort: Key differences

The following table describes some of the key differences between full- and limited-tort car insurance.

What is full tort?

In full-tort states, the driver who causes a car accident is responsible for paying for damages and medical expenses, and the law doesn’t restrict or limit drivers’ right to sue at-fault drivers. You can sue for medical expenses and pain and suffering — which can include physical pain or emotional pain that a person suffers as a result of the accident.1

States with at-fault car insurance laws

Thirty-eight states have an at-fault car insurance system, also known as “tort states.” In at-fault states, the driver who causes the accident is responsible for compensating the other driver for medical costs and damages, usually through their liability insurance coverage.

Most states, whether fault or no-fault, still have minimum insurance requirements, which include bodily injury liability and property damage liability.

States with no-fault car insurance

Twelve states use no-fault insurance laws, including Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania, and Utah.1

In a no-fault state, you file a claim with your own insurance company for bodily injuries after a car accident, regardless of fault. No-fault states require drivers to purchase personal injury protection (PIP) as part of minimum coverage. This coverage pays for medical expenses, lost wages, child care and household expenses, and funeral costs for drivers and their passengers.

How full-tort car insurance works

With full-tort insurance, people have unrestricted rights to sue at-fault drivers after a car accident.1

For example, another driver could cause a car accident that gives you whiplash and other injuries that require you to take time off work to seek medical attention. The car accident could also cause anxiety, depression, post-traumatic stress disorder, and other mental health issues.

With full-tort insurance, you can seek payment from the at-fault driver for your medical costs, lost wages, and continued pain and suffering for emotional distress.

What is limited tort?

In limited-tort states, the law restricts when you can sue the at-fault driver for damages and injuries after a car accident — your PIP coverage typically covers your medical bills. It’s possible to sue the at-fault driver for additional compensation, but only for personal injury damages and medical bills directly related to the accident.

You can’t sue the at-fault driver for non-monetary damages, such as pain and suffering.3

Some states have exceptions for serious injuries. For example, in New Jersey, if you purchase limited-tort coverage, you can’t sue for additional medical expenses and lost wages unless you sustain a serious injury. These include:4

• Loss of a body part

• Significant disfigurement or scarring

• A displaced fracture

• Loss of a fetus

• Permanent injury

• Death

Choice no-fault states

If you live in Kentucky, New Jersey, or Pennsylvania, you’re part of the no-fault system. However, you can choose between a no-fault auto insurance policy and a traditional tort liability policy. In New Jersey and Pennsylvania, the no-fault coverage has a verbal threshold. In Kentucky, it’s a monetary threshold.

How limited-tort car insurance works

Limited-tort car insurance generally costs less than full-tort coverage because with limited-tort insurance, you forgo your right to sue for pain and suffering after a car accident, reducing your auto insurer’s risk of paying legal fees in a lawsuit.

For example, if you have limited-tort car insurance in Kentucky, you can’t sue the at-fault driver of an accident to recover medical expenses, wage loss, or pain and suffering unless you sustain one of the following:5

• $1,000 in medical expenses

• Broken bone

• Permanent disfigurement

• Permanent injury

• Death

Cost comparison: Full-tort vs. limited-tort car insurance

Your state’s tort laws can also affect the cost of car insurance. States with no-fault car insurance laws tend to have more expensive insurance rates than states with at-fault systems.1 However, factors including age, gender, marital status, ZIP code, the type of vehicle you drive, and your driving record can affect your car insurance costs.

The following table shows the average monthly costs based on at-fault (tort), no-fault, and limited-tort (choice) insurance systems.

Full tort vs. limited tort FAQs