A TOP traffic attorney has warned drivers that a simple insurance mistake could cost them thousands.
Experienced lawyer Adam Rosenblum spoke to The U.S. Sun about the pitfalls of choosing insufficient coverage and then paying the price when the worst happens.
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Rosenblum, who is based in New York and is a founder of Traffictickets.com, said the “dirty secret New Jersey car insurance sellers don’t want you to know about” concerns the difference between limited and full-tort insurance.
With tort insurance, the at-fault driver is financially responsible for any damages with the option of being taken to court and sued.
It also gives you the ability to sue for medical costs, as well as pain, and suffering.
The limited option, which is the default option in New Jersey and two other states, also allows the person deemed to have caused the crash to be sued for all damages – except for pain and suffering and may also limit other claims.
The definition changes from state to state, but it’s undeniably a gray area for attorneys to exploit on behalf of their clients.
And for Rosenblum, that’s where the problem lies.
Unbeknownst to many people in New Jersey, Pennsylvania, and Kentucky, they will be offered the limited option, which – although cheaper – leaves you with far fewer options if there’s a crash.
With that insurance, you cannot sue unless you have a serious injury so although money has been saved with the original package, there could be problems if a court case ensues.
“I would always advise people to purchase full tort if they can afford it,” Rosenblum told The U.S. Sun.
The tort car insurance system is used in 38 states and Washington, DC.
When the full tort is used, the person who caused the issue is financially responsible for the injuries and any damage.
The remainder of the country uses a system where personal injury protection plans provide coverage that can be used for medical bills.
Only three states – New Jersey, Pennsylvania, and Kentucky – are choice states, where you can choose between full or limited tort. Some will opt to have no-fault coverage.
Either way, Rosenblum urges people to know all the facts if you live in one of those states and need insurance.
“You have to be careful,” he said.
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Based in New York, Stephen Freeman is a Senior Editor at Trending Insurance News. Previously he has worked for Forbes and The Huffington Post. Steven is a graduate of Risk Management at the University of New York.