Many people tell me they have “full coverage” automobile insurance, which is odd since there is no such thing! People often confuse “full coverage” with “full tort,” which means they can recover both economic (lost wages, medical bills, etc.) as well as non-economic (pain and suffering, emotional distress, etc.) from the party that caused the accident.
People try to save money on their auto insurance by selecting the “limited tort” option; however, they are giving up substantial rights by doing so. The limited tort option means you are giving up your right to recover non–economic damages from the person that caused the accident. Therefore, except in certain circumstances, you cannot recover for pain and suffering, emotional distress and other such injuries. While you can still recover economic damages, like lost wages and medical bills, these are often covered by your insurance anyway.
Therefore, think carefully about giving up your rights to be compensated for your injuries in exchange for saving a few dollars on your insurance premium when selecting the limited tort option. Select full tort if you want “full coverage!”