Did you know that there are 12 no-fault states in America and the rest (38) are tort states? What does this mean exactly? Are you becoming confused by all the legal vernacular?

Well, that’s why we are here. In this article, we will explain to you all about tort insurance and what the tort system is all about, so keep reading.

What Are the Different Car Insurance Types?

There are two different ways you can cover yourself when it comes to car insurance. No-fault insurance is when, even if a driver is at fault, the insurance company is not required to pay out injury claims. In such cases, drivers will usually purchase PIP (personal injury protection) coverage to cover medical treatment, lost wages, or other expenses.

car insurance

These are all the no-fault states:

  • Florida
  • Hawaii
  • Kansas
  • Kentucky
  • Massachusetts
  • Michigan
  • Minnesota
  • New Jersey
  • New York
  • North Dakota
  • Pennsylvania
  • Utah

In the tort system, the driver who is at fault is responsible for ALL of the expenses incurred by the other driver who was not at fault. There is full tort where you can sue the person who’s at fault for any damages incurred. And there’s limited tort, where you can only sue the at-fault driver for a limited amount of damages.

Auto Insurance

What Is Tort Auto Insurance?

When you live in a tort state, you must have tort auto insurance. This includes liability insurance that will cover any injuries you might cause to others in an at-fault accident.

It’s important to remember that you don’t purchase tort insurance directly. The cost is included in your auto insurance coverage if you are in a tort state. It’s automatic.

If you live in a tort state, it’s crucial to get as much coverage as possible, since you are going to be responsible for all costs of the other driver in case of an at-fault accident. You don’t want to have to declare bankruptcy and cause your family to suffer because you weren’t covered for all eventualities.

Also, if you are in an at-fault accident, the first thing you should do after you call your insurance company is contact a car accident lawyer. This way you have someone on your side to protect you in case of legal battles, so you don’t give your entire estate away if sued. Find out more about a Nevada car accident lawyer here.

average cost of car insurance

Get the Best Tort Insurance Policy for You

The most important thing is proper knowledge when it comes to tort insurance. Most people are completely clueless about this particular kind of insurance policy and they are walking around unaware until it’s too late.

With the right insurance policy in place, you will be protected no matter what comes your way. And this can give you and your family that peace of mind you deserve.

If you wish to keep growing your knowledge base when it comes to personal finances, keep reading through our website.

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