Do I want “limited tort” or “full tort” auto insurance?
Since the “limited tort” option is apparently of somewhat recent vintage, and only exists in some areas (I’m in New Jersey), maybe I should explain what it is, for the curious: the idea is that by electing “limited tort” I waive my right to sue a negligent driver for pain and suffering, although I can still sue for medical expenses. In exchange for this I get a reduction in my insurance premium. (I don’t know how this works on the back end — I suppose the insurance companies must be paying one another, or maybe paying the government, based on how many “limited tort” policies they are carrying.) The choice makes a big difference in my insurance quote — e.g., with GEICO, choosing “limited tort” changes the premium from around $1000 to around $600 per six months. I’m finding it hard to estimate in any intelligent way how much additional risk I would be taking on. I also haven’t managed to get information or advice on the subject that isn’t obviously biased; as far as I can see, Google j
