What Is No-Fault Insurance?

No-fault insurance refers explicitly to car insurance. It is also sometimes called Personal Injury Protection, or PIP. Pennsylvania is one of twelve states that use no-fault insurance, although Pennsylvania’s version is a bit unique.

The basic premise of no-fault insurance is that everyone is covered by their insurance, no matter who causes the accident. Instead of filing a lawsuit against the at-fault driver or a third-party insurance claim, you submit your claim to your insurance company. 

Your insurance company compensates you for any financial losses related to injuries you sustained in your car accident.

The benefits of the no-fault system are knowing that your insurance company will not deny your claim over disagreements about who caused the accident because it is irrelevant. You are not required to prove to the adjuster that you were not at fault.

The disadvantage of the no-fault system is that you are limited in the types of compensation you are eligible to collect.

It is essential to mention that the no-fault system applies only to injuries caused by car accidents, not vehicle damage. There are no limitations to filing a suit against an at-fault driver for damage to (or loss of) a vehicle.

Limited Tort vs. Full Tort Coverage

There are two forms of coverage you can get in Pennsylvania: limited tort or full tort coverage.

Limited Tort Coverage

Limited tort coverage limits the ability of anyone covered by the policy to get compensation when another driver causes an accident. Claimants can receive compensation for medical treatment and out-of-pocket expenses but not for non-economic damages, such as pain and suffering. Limited tort coverage is generally more affordable compared to full tort coverage.

Full Tort Coverage

While full tort coverage is more expensive than limited tort coverage, it offers more protection. Full tort coverage grants anyone under the policy unlimited rights to get compensation for injuries and losses, both economic and non-economic when another driver causes an accident.

You can recover the cost of all of your medical treatment and out-of-pocket expenses, in addition to non-economic damages such as pain and suffering, even if your injuries don’t meet Pennsylvania’s threshold for seriousness.

Can You Still File a Car Accident Lawsuit in a No-Fault State?

You can still file a car accident lawsuit in Pennsylvania. Victims can bypass the no-fault system if the accident causes a significant injury or the medical bills resulting from the accident reach a certain amount.

Pennsylvania’s courts define serious injury as an injury that seriously impairs functioning or has caused severe and permanent disfigurement. For further details, you may reference Pennsylvania Statutes Title 75, Section 1705.

Finding the Right Car Accident Attorney for You in Pennsylvania

If you have questions about no-fault insurance for your case, Baratta Law, LLC is here to answer them. You can call us today at 215-914-8132 to tell us your story. We hope to guide you to safe shores like the lighthouse in our logo.

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