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Written by Daniel Robinson WriterDaniel Robinson is a writer based in Greenville, N.C. with expertise in auto insurance, loans, warranty options and more. Away from the keyboard, Daniel spends time with his wife and son, plays guitar and obsesses over the Beatles and Baltimore Orioles.
Edited by RaShawn Mitchner Senior EditorRaShawn Mitchner is a MarketWatch Guides team senior editor covering personal finance topics and insurance. She’s spent over a decade writing and editing articles about how to save money on travel, entertainment, household services and more.
Our Research Process Edited by RaShawn Mitchner Senior EditorRaShawn Mitchner is a MarketWatch Guides team senior editor covering personal finance topics and insurance. She’s spent over a decade writing and editing articles about how to save money on travel, entertainment, household services and more.
Why Trust UsHere’s a breakdown of how we reviewed and rated the top auto insurance providers
130 Providers ReviewedOur team looked at over 100 of the top auto insurance providers in the U.S., from national providers like USAA, Travelers and State Farm to regional providers like Erie Insurance.
8,500 Data Points AnalyzedTo properly score each auto insurance provider, we looked at cost data, claims processes, customer review scores, industry standing, available discounts, coverages and add-ons.
800 Research HoursOur team put in the time so you don't have to, evaluating cost data, reading customer reviews and researching companies to determine the most reliable options for coverage.
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Key TakeawaysTort law allows people to seek compensation from at-fault drivers after car accidents, whether through liability insurance or lawsuits. Thirty-eight states follow the tort system for auto insurance, which gives injured parties more leeway to sue for damages. The other 12 states limit what victims can sue for and require them to file claims through their own insurance for medical bills.
In this article, we at the MarketWatch Guides Team will explain full tort vs. limited tort auto insurance and how they work in the three states that let drivers choose which one to carry. We’ll also give two of our top recommendations for the best car insurance companies.
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With tort insurance, the driver who caused the accident must compensate the injured party, and the victim has the right to sue for damages. How much the victim can get depends on their level of car insurance coverage.
Full tort coverage has no restrictions on the compensation you can get after a car accident that another driver causes. In contrast, limited tort coverage restricts how much compensation you can get.
Because full tort insurance has no limit on suing for pain and suffering, premiums for it are about 15% more expensive than what you’d pay for a limited tort option. Only three states — Kentucky, New Jersey and Pennsylvania — let drivers choose between full and limited tort coverage. It’s generally best to get full tort insurance if you can afford it because it could provide long-term benefits.
The table below gives a brief overview of the differences between full tort vs. limited tort auto insurance:
| Limited Tort | Full Tort |
|---|---|
| Only lets you try to get compensation for injuries if they’re serious | Doesn’t have a minimum threshold for the severity of injuries you can seek compensation for |
| Usually only lets you sue for pain and suffering for serious injuries | Lets you sue for pain and suffering with no restrictions |
| Is more affordable | Is typically about 15% more expensive than limited tort insurance |
Pain and suffering consists of both the physical discomfort and the emotional distress caused by injury from an auto accident. It encompasses emotional trauma, mental anguish, inconvenience, disfigurement and pain that can cause non-economic damages, such as these:
Full tort coverage gives you the right to sue for pain and suffering with no restrictions, while limited tort insurance usually only lets you sue for monetary damages such as medical expenses and loss of income.
However, if you’re seriously injured, you can still sue for pain and suffering if you have limited tort coverage. Serious injury could include the following situations:
In no-fault states, each driver is responsible for their own medical expenses. That’s why you must have personal injury protection (PIP) — also known as no-fault insurance — if you live in one of these states. After an accident, PIP insurance covers your and your passengers’ medical bills, income losses, funeral expenses and certain other costs, no matter who caused the accident.
Before no-fault insurance was introduced in many states in the 1970s, courts had to determine who was at fault in auto accidents before payouts could be made. No-fault insurance was created so a victimized driver wouldn’t have to rely on the at-fault driver’s insurance. This system helps injured parties get payments for medical costs and lost wages from their own insurance companies .
Limited tort coverage qualifies as no-fault insurance because both drivers rely on their own insurance to cover their medical expenses after an accident. Full tort coverage is from an at-fault insurance system, where the driver who caused the accident is legally responsible for all damages, not just property damage.
PIP insurance is required in some states, while others let you buy it as add-on coverage. Although Delaware and Oregon require PIP, they’re at-fault states. Puerto Rico and the following 12 no-fault states require drivers to have PIP:
In a few states, there’s some flexibility. In Kentucky, New Jersey and Pennsylvania, drivers can opt out of no-fault coverage and choose between full or limited tort coverage. If you live in Pennsylvania and want limited tort coverage, you’ll have to request it since full tort coverage is the default.
All states besides the 12 listed above are tort-based, and they don’t differentiate between limited and full tort.
Full tort and full coverage are two different things. A full-coverage insurance policy typically includes liability insurance and comprehensive and collision coverage . With liability car insurance , your insurer covers the cost of personal injuries and property damages to other parties if you cause an auto accident.
Comprehensive insurance protects your car against non-collision damage. This includes fire, theft, vandalism and acts of nature. According to the Insurance Information Institute (III), it costs a little more than $134 each year on average.
Collision insurance pays for car damage caused by another object or by your car flipping over. According to the III, it costs $290 annually on average. Comprehensive and collision coverage aren’t required by law but are generally required by the lender or lessor if a vehicle is financed.
Before choosing a policy, compare the types of car insurance and what they cover.
Tort car insurance enables injured parties to seek compensation from at-fault drivers. Since full tort insurance provides more protection in the short and long term, it’s the ideal coverage if you live in a state where it’s optional. However, if you don’t have the funds to pay about 15% more in premiums for full tort coverage, limited tort coverage can still help.
By comparing auto insurance quotes and coverage, you could save money while getting the best protection. Our team recommends considering State Farm and Geico for your car insurance policy.
State Farm often earns high marks in the annual J.D. Power U.S. Insurance Shopping Study℠, which asks customers about their experiences from the quote process on. The company has good discounts for young drivers , such as Steer Clear ® . It’s a usage-based insurance program that rewards drivers with lower premiums for taking a training course.
USAA offers consistently low insurance rates for all types of drivers and vehicles. However, its plans are only available to active members of the military, veterans and their immediate families. USAA is known for excellent customer service and offers a wide range of coverage options. They received an USAA insurance review
