What should I know about insurance coverage?

Of particular concern to residents of Pennsylvania or New Jersey is the "Tort" Option that you have chosen for your personal automobile insurance coverage. Most people do not understand the nuances of this coverage, and the insurance companies (and their agents) purposely do not explain these items to you. Most people assume that "Full Coverage" means they are fully protected. This is NOT the case!

Pennsylvania Drivers
Full Tort means that you can seek compensation for your pain and suffering for any injury you receive in an auto accident, provided that someone else is at fault for the accident. You do not have to worry about whether you have a serious injury. Spending a few more dollars now to elect Full Tort on your policy instead of Limited Tort could mean thousands of dollars to you for your pain and suffering.
Limited Tort means that, with very few exceptions, you give up the right to receive compensation for pain and suffering if you are injured in an accident. If you have never been injured in an auto accident, you may not realize the pain and suffering that a person goes through, sometimes for many months or even years.

Exceptions to Limited Tort which grant Full Tort coverage:
1. The injury is deemed to be serious. It is very possible that many injuries that you would consider serious may not be deemed so under the current legal definition.
2. The person at fault for the accident is not just charged - but convicted - of driving under the influence of alcohol or a controlled substance, or if (s)he accepts Accelerated Rehabilitative Disposition, known as ARD. ARD is a program that gives certain offenders the opportunity to earn a dismissal of the charges by completing a program assigned by a judge.
3. The at-fault driver is driving a vehicle that is registered in another state.
4. You were injured in an accident while driving, or as a passenger in, a commercial vehicle.

New Jersey Drivers
In New Jersey, the insurance terms used are "Verbal Threshold" (or "Lawsuit Threshold") and are quite similar to the Limited Tort coverage. However, in New Jersey, there is even a more strict definition that requires a "permanent" injury before being able to present a claim. In New Jersey, you should always demand the "NO THRESHOLD" (or "ZERO THRESHOLD") option in your automobile insurance policy. If you do not ask for this coverage, you will automatically be given the lawsuit threshold. For that reason, many residents of New Jersey are completely unaware that their rights are being severely limited in their insurance policies.

"Uninsured” and “underinsured” motorist coverage
Of equal importance in protecting you and your family's rights in your car insurance policy is "Uninsured" and "Underinsured" motorist coverage. "Uninsured" motorist coverage protects you and your family's rights in the event that a person without car insurance causes injury or damages to you or your family members. With this coverage, you and your family can be compensated from your own policy, just as if the responsible driver had insurance. Using this coverage will not raise your insurance premium.
"Underinsured" motorist coverage protects you and your family's rights in the event that a person causes injury or damages to you or your family and does not have enough insurance to fully compensate you for these injuries and damages. In that event, you and your family can be fully compensated from your own policy, just as if the responsible driver had enough insurance. Using this coverage will not raise your insurance premium.
It is important to note that this insurance coverage will protect you and your family even if the injuries and damages occur while traveling in someone else's car. This coverage "follows" you and your family members, and is not limited to only those injuries and damages that occur while traveling in your covered car. Always choose uninsured and underinsured motorist coverage on your car insurance policy.