What Are Full Tort and Limited Tort Auto Insurance?
Full tort and limited tort are two types of personal injury protection (PIP) options available in many states, especially Michigan. They determine whether you can sue for non‑economic damages—such as pain and suffering—after an auto accident. Full tort lets you pursue any claim, while limited tort restricts you to economic losses unless your injury meets a serious‑injury threshold.
- What Are Full Tort and Limited Tort Auto Insurance?
- Why the Choice Matters
- Key Definitions
- How States Define the Serious‑Injury Threshold
- Premium Differences: What to Expect
- When Full Tort Is Advantageous
- When Limited Tort May Be Sufficient
- Impact on Claim Process
- Full Tort Path
- Limited Tort Path
- Comparative Table: Full Tort vs. Limited Tort
- How to Choose the Right Option for You
- Frequently Asked Questions
- Can I switch from limited tort to full tort after purchasing a policy?
- Do all states offer both options?
- What happens if I file a lawsuit under limited tort but don't meet the serious‑injury test?
- Is there a way to get the benefits of full tort without the higher premium?
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Why the Choice Matters
Choosing between full and limited tort impacts three core areas: your potential compensation, your premium cost, and your legal rights. Full tort offers broader recovery but usually comes with higher premiums. Limited tort lowers the premium but can cap your compensation unless you qualify for the serious‑injury exception.
Key Definitions
Full Tort: A coverage option that allows the policyholder to file a lawsuit for any bodily injury claim, including non‑economic damages, regardless of injury severity.
Limited Tort: A coverage option that limits lawsuits to economic damages (medical bills, lost wages) unless the injury meets a state‑defined serious‑injury threshold (e.g., disfigurement, loss of a limb, permanent loss of use of a bodily function).
Personal Injury Protection (PIP): Mandatory coverage in many states that pays for medical expenses and, depending on the tort option, may also cover non‑economic losses.
How States Define the Serious‑Injury Threshold
Each state that offers limited tort sets its own criteria. Common thresholds include:
- Permanent loss of a bodily function (e.g., vision, hearing)
- Disfigurement of a permanent nature
- Fracture of a major bone or joint
- Loss of a limb or amputation
- Any injury requiring surgical implantation of a prosthetic device
If your injury does not meet these criteria, you are limited to economic damages under a limited‑tort policy.
Premium Differences: What to Expect
While exact numbers vary by insurer and state, studies consistently show that full‑tort policies cost 5%–15% more than comparable limited‑tort policies. The premium gap reflects the insurer's increased risk exposure when policyholders can pursue broader lawsuits.
| Policy Type | Typical Premium Increase | Source Type |
|---|---|---|
| Full Tort | 5%–15% higher than limited tort | Industry survey (NAIC) |
| Limited Tort | Baseline | Industry survey (NAIC) |
When Full Tort Is Advantageous
Full tort is most beneficial if you:
- Have a high risk of severe injury (e.g., high‑speed driving, frequent long‑distance travel)
- Prefer the flexibility to sue for pain and suffering regardless of injury classification
- Can afford the modest premium increase
In a severe accident, the ability to recover non‑economic damages can add tens of thousands of dollars to a settlement.
When Limited Tort May Be Sufficient
Limited tort can be a smart choice when you:
- Are comfortable with the economic‑damage ceiling and accept that non‑economic recovery is limited
- Want to lower your annual premium
- Live in a state where the serious‑injury threshold is relatively low, making it easier to qualify for full‑tort rights even with a limited‑tort policy
Impact on Claim Process
Both policy types require you to file a PIP claim within the state‑mandated time frame (often 30–90 days). The key difference appears after the initial PIP payout:
Full Tort Path
If you're unsatisfied with the PIP settlement, you can file a civil lawsuit for any damages, including pain and suffering, without meeting a serious‑injury test.
Limited Tort Path
You may still sue, but only for economic damages unless you can prove a serious injury. This often leads to a quicker resolution but caps potential recovery.
Comparative Table: Full Tort vs. Limited Tort
| Aspect | Full Tort | Limited Tort |
|---|---|---|
| Right to sue for pain & suffering | Yes, any injury | Only if serious‑injury threshold met |
| Typical premium impact | +5%‑15% | Baseline |
| Potential total recovery | Economic + non‑economic | Economic only (unless serious injury) |
| Complexity of claim | Higher (possible litigation) | Lower (mostly PIP) |
How to Choose the Right Option for You
Follow this decision framework:
Frequently Asked Questions
Can I switch from limited tort to full tort after purchasing a policy?
Most insurers allow a change at the renewal date or during a policy amendment window, often with a modest premium adjustment. Switching mid‑term is rare and may require a new policy.
Do all states offer both options?
No. Only a subset of states—primarily Michigan, New York, and a few others—provide the full vs. limited tort choice. In states without this option, the default is typically full tort.
What happens if I file a lawsuit under limited tort but don't meet the serious‑injury test?
The court will dismiss the non‑economic damages claim, leaving you with only economic recovery. You may still recover medical bills and lost wages through PIP.
Is there a way to get the benefits of full tort without the higher premium?
Some insurers offer "enhanced limited tort" riders that raise the serious‑injury threshold or add limited non‑economic coverage for an additional fee, bridging the gap between the two base options.