FREQUENTLY ASKED QUESTIONS ABOUT AUTOMOBILE ACCIDENTS AND INSURANCE COVERAGE

As always, if you have any questions or concerns regarding automobile insurance, please feel free to contact our law firm for a free consultation. I, Attorney Jason P. Provinzano, will personally take the time to look at your automobile insurance policy to make sure that you and your loved ones are protected under your automobile insurance policy.

• How do I recover damages from an automobile accident and where does the money come from?
  • Under Pennsylvania law, there are “first party benefits,” which are benefits that you carry under your own automobile insurance policy, and there are “third party benefits,” which are those benefits that the defendant carries under their automobile insurance policy.
  • “First party benefits” include PIP benefits, which stands for “Personal Injury Protection.” PIP is paid regardless of fault. PIP payments typically include payment for medical bills and lost wages up to a specific amount, which depends on the amount of coverage that you selected under your policy. However, based on PA law, every PA insurance policy must provide at least $5,000 in medical benefits. On the other hand, wage and collision coverage are optional.
  • “Third party benefits,” which are paid by the defendant’s insurance carrier, are only payable if the other driver is determined to be at fault. Usually, a claim for “third party benefits” includes compensation for lost wages, pain and suffering, and medical bills, which include but are not limited to bills from hospitals, physicians, physical therapists, occupational therapists and chiropractors.
  • A spouse of an individual who is injured in an automobile accident may also have a valid claim for loss of consortium, which would be paid by the defendant’s insurance carrier. A claim for loss of consortium can be made when injuries are so severe that they interfere with the injured party’s spousal relations.

• If I am a victim in an automobile accident that was not my fault and I collect “first party benefits” from my own insurance carrier, will my insurance premium go up?
  • Under Pennsylvania law, there are “first party benefits,” which are benefits that you carry under your own automobile insurance policy, and there are “third party benefits,” which are those benefits that the defendant carries under their automobile insurance policy.
  • If you are the victim in an automobile accident, which was caused by someone else’s negligence, and you collect “first party benefits” from your own insurance carrier, your insurance premium will not be increased. Insurance premiums are based on risk. If the automobile accident was not your fault, then you will not be considered an at risk driver; therefore, your insurance premium will not be increased regardless of the fact that you receive “first party benefits” from your own insurance carrier. “First party benefits” are benefits that you purchase and pay for; therefore, you are entitled to recover those benefits.

• What is the difference between “full tort” and “limited tort”?
  • When you purchase automobile insurance, you have a choice of selecting either “Full Tort” or “Limited Tort.” The main difference between the two, which is extremely important to understand, is that with “Limited Tort” you cannot recover noneconomic damages, which includes pain and suffering, unless a very limited exception applies.
    • These strict exceptions include but are not limited to:
      • being hit by a drunk driver or someone who is admitted into the Accelerated Rehabilitative Disposition (ARD) Program;
      • being hit by someone operating a motor vehicle that is registered in another state;
      • being hit by someone who intended to injure themselves or another person, or
      • being injured while occupying a commercial vehicle.
  • If you have “Limited Tort,” and you are a victim in an automobile accident, and you sustain “serious” injury, meaning personal injury that results in death, serious impairment of bodily function, or permanent disfigurement, then you will be able to recover economic loss as well as noneconomic loss as if you had “Full Tort.” However, this is a very high burden to substantiate.
  • Ultimately, if you have “Limited Tort,” then you have an additional burden in order to recover noneconomic loss, which again includes pain and suffering. Ultimately, by selecting “Limited Tort,” you are severely limiting your ability to recover damages that you and your loved ones may deserve.
  • By selecting “Full Tort,” you are able to sue and seek compensation for noneconomic as well as economic loss sustained in an automobile accident that was someone else’s fault. This means that you maintain all of your rights and there is no additional burden to overcome. For example, if you have “Full Tort,” you may be able to recover for even minor injuries.
  • It is important to note that many times insurance agents do not fully explain the difference between “Limited Tort” and “Full Tort.” Many times insurance agents will only explain that you can save some money by selecting “Limited Tort.” Insurance agents do not indicate how extremely risky it is to select “Limited Tort” or how you cannot recover for noneconomic loss (i.e. pain and suffering) in the event that you or a loved one is involved in an automobile accident. This is not the area where you should attempt to save money because the result can be catastrophic.
  • Ultimately, it is extremely important that you look at your automobile insurance policy’s declaration page, which is the page of your automobile insurance policy that reflects your automobile insurance coverage, or contact your insurance carrier to find out which tort option you selected. If you find that you have “Limited Tort,” I recommend that you immediately change your insurance to reflect “Full Tort,” so that you and your loved ones are protected in the event of an automobile accident.

• What is uninsured and underinsured motorist coverage?
  • Unfortunately, many drivers do not have insurance or purchase automobile insurance that is insufficient to cover damages that you or your loved ones may sustain in an automobile accident. With that being said, you have the ability and the option to protect your interests and the interests of your loved ones by purchasing uninsured motorist coverage and underinsured motorist coverage from your own insurance carrier.
  • Uninsured motorist coverage is coverage that you can purchase from your insurance carrier that will protect you and your loved ones in the event that you or a loved one is injured in an automobile accident by an uninsured party. Unfortunately, if you or a loved one is injured in an automobile accident by an uninsured party and you do not have uninsured motorist coverage, it is likely that you may not be able to recover from that party. However, if you do have uninsured automobile coverage, then you can make an uninsured motorist claim against your own insurance carrier.
  • Uninsured motorist coverage will also apply, for example, if you were involved in a hit-and-run accident by an unidentified driver if the accident is reported to the police within thirty (30) days from the date of the accident.
  • Again, it is important to note that your insurance premium will not be raised because, again, your rate is based on risk and not based on the fact that your insurance carrier had to pay uninsured motorist benefits.
  • Underinsured motorist coverage is also coverage that you can purchase from your insurance carrier to protect both your interests and the interests of your loved ones in the event that you or a loved one is injured in an automobile accident by a party with inadequate automobile insurance. In this case, you would be able to recover from the at fault party’s insurance carrier. Then, you could make an underinsured motorist claim against your insurance carrier for the difference, allowing you to make a full recovery concerning damages.

• What does stacking of limits mean?
  • Stacking limits applies to uninsured and underinsured motorist coverage when you insure more than one vehicle. For example, if there are two vehicles in your household, each with $100,000 per person / $300,000 per occurrence of coverage, and you choose to “stack” the limits, then your total uninsured and underinsured motorist coverage available to you would be $200,000 per person / $600,000 per occurrence.

• What if I do not have automobile insurance, but I was injured in an automobile accident?
  • You may be able to be compensated for your injuries. If you reside with other family members who have automobile insurance, then you may be able to recover under their automobile insurance policy. It is important to note that the tort option that they selected will apply to you, so if they have “Limited Tort,” then your case might be compromised as discussed above.

• Should I attempt to handle my own automobile personal injury case?
  • No. As I have previously stated, automobile accident cases are complex and proceeding unrepresented is extremely risky. It is in your best interests and the best interests of your loved ones to immediately contact the Law Offices of Jason P. Provinzano, LLC for a free consultation, so that he can explain your right, protect future, and make sure that you get the money that you and your loved ones deserve.