How No-Fault Laws Influence the Car Accident Settlement Process
No-fault laws are in the minority in the United States. Only 12 states currently have some form of no-fault car accident law in place, while the other 38 abide by fault-based insurance laws. Pennsylvania is especially unique because it uses a “choice no-fault” system. The type of insurance a driver chooses will influence what the settlement process looks like in the aftermath of a car crash.
What Are the Auto Insurance Options for a Driver in Pennsylvania?
Minimum amounts of automobile insurance are mandatory for all drivers in Pennsylvania. When purchasing an auto insurance policy, a driver has the option of choosing limited tort or full tort insurance. This distinction makes a difference in the victim’s legal rights and the types of financial compensation available in a Pittsburgh personal injury lawsuit; however, it does not affect medical coverage benefits.
Limited Tort
Limited tort insurance means a driver has a limited or restricted right to hold someone else liable (legally responsible) for a car accident. Limited tort insurance in Pennsylvania will only allow the policyholder to sue for pain and suffering damages if the injury is serious enough to reach the state’s tort threshold. This includes broken bones, the loss of an important bodily function, and permanent scarring or disfigurement.
With limited tort insurance, the policyholder can also recover pain and suffering compensation if the at-fault driver was driving under the influence at the time of the crash, regardless of injury severity. If the individual was a pedestrian or bicyclist at the time of the accident, this can also allow him or her to sue for full damages with limited tort insurance.
Full Tort
Purchasing full tort insurance in Pennsylvania comes with a higher premium than limited tort coverage, but it gives the policyholder unlimited right to sue other drivers and third parties for damages, including pain and suffering. Regardless of the level of injury caused by the car accident, a driver with full tort coverage can qualify for noneconomic damages in a lawsuit.
Personal Injury Protection
All drivers in Pennsylvania are also required to carry personal injury protection (PIP) insurance. PIP pays for the policyholder’s own necessary medical care, regardless of who is at fault for the crash. The minimum required amount of PIP insurance in Pennsylvania is $5,000.
How Does a Car Accident Claim in Pennsylvania Work?
When a car crash takes place in Pennsylvania, the driver should notify his or her own car insurance company right away. Regardless of fault, the driver’s PIP insurance will pay for required medical care up to the limits on the policy. PIP is available without having to prove that the other driver is at fault.
The type of tort insurance purchased will determine the next step and whether the driver is able to bring a claim against the other party for pain and suffering damages. If so, the claimant will have to prove fault or negligence. Most third-party claims in Pennsylvania end in settlements, but some proceed to court.
It can be difficult to correctly navigate Pennsylvania’s choice no-fault law during your car accident claim, especially if you have been seriously injured. Obtaining fair and full financial compensation from one or more insurance companies may take assistance from a Pittsburgh car accident lawyer.