by Timothy A. Shollenberger, Esq.

All too often, individuals have called me following a car or motorcycle accident and I have had to advise them that their coverage is inadequate to cover their loss. With a little bit of knowledge and research, the problem of inadequate coverage can be avoided. One area that many people do not understand is the difference between “limited and full tort.” “Full coverage” does not necessarily mean that you have chosen the full tort option. Basically, a person who selects the full tort option retains the right to bring a claim for all their damages, including non-economic damages, like pain and suffering, without having to prove that the injury has caused a serious impairment of a bodily function. A limited tort elector cannot bring a claim for such non-economic losses unless they can prove that the injury is “serious.”

Another essential coverage is “underinsured motorist protection.” Underinsured motorist coverage protects you if you are injured as a result of the negligent operation of a motor vehicle by a person who does not have “enough insurance” to cover your bodily injury losses.

Uninsured motorist coverage is equally essential and protects you if you are injured by a person without insurance. Uninsured motorist coverage can be purchased up to the limit of your liability coverage.

The limited tort option can only be chosen by signing a written form selecting that option. The law requires that you be informed of the difference in cost between a policy providing the basic full tort option and the limited tort option. In most cases, the savings realized by selecting the limited tort option do not justify its selection. Underinsured motorist coverage must be offered to you in amounts equal to the amount of your bodily injury liability coverage limits. Only if you sign a selection form selecting lower limits of coverage will you be bound by the lower coverage.

All too often, for a small savings in premiums, seriously injured people are left with inadequate coverage totaling tens and even hundreds of thousands of dollars.

Again, the key is to inform yourself of the cost of the different coverage options available to you and then decide whether you can afford the additional coverage.

A recent example will illustrate the point. A person tragically lost a spouse in a collision caused by a drunk driver. The couple could have purchased up to $300,000 of underinsured motorist coverage. Unfortunately, the drunk driver had but $15,000 of bodily injury liability coverage.

The victim's spouse was left without the spouse's income but had signed a form in which the couple had elected to purchase only $45,000 of underinsured motorist coverage. The $45,000 of under-insurance coverage cost only $12 per year! One could only imagine how inexpensive the additional coverage would have been.

Guidelines made available to consumers by the Insurance Department in March, 1997, illustrate how little is potentially saved by selecting the limited tort option as opposed to full tort. These guidelines reveal, for example, that a typical customer of State Farm Mutual residing in Dauphin County who purchases $50,000/100,000 of bodily injury liability; $25,000 property damage liability; $50,000/100,000 unstacked uninsured and under-insured motorist coverage; comprehensive with a $100 deductible; and collision with a $500 deductible would be expected to pay between $591 - $703 per year if full tort is elected and between $500 - $596 per year if limited tort is elected; an annual savings of only $99 per year!

In conclusion, before you choose to reject or reduce your uninsured or underinsured motorist coverage or choose the limited tort option, make sure you know precisely how much you will be saving as a result of your choice. Question your agent extensively about those options and their cost. When you receive your insurance policy in the mail, do not take it for granted that you have all the coverage you desire or even the best coverage for you. Changes to your coverage can always be made by contacting your agent in writing and advising him or her of the changes you wish to make to your coverage.