If you're like most people I know (myself included), when you turned 16 years old you could not wait to get your driver's license! The idea of being able to go wherever you wanted, whenever you wanted was exciting. You were concerned about seeing your friends and having some freedom. I can almost guarantee that you were not concerned with auto insurance. If your parents paid for your auto insurance, you may not have even thought about it. If you had to think about it, you were probably on a search for the cheapest auto insurance you could find. Insurance is expensive for young drivers and you probably couldn't afford much more than a basic auto insurance policy. Plus, you were really young and probably thought nothing bad would ever happen to you.
If you're at a point in your life where you cannot afford more than a basic auto insurance policy, we understand that. If you are at that point, whether you are a young driver or you are going through a financially difficult time, before telling your insurance agent you just want the cheapest policy, always ask what the price difference is between having FULL or LIMITED TORT1. If you can afford FULL TORT, ALWAYS purchase FULL TORT. If you purchase Full Tort and you are injured in an auto accident through no fault of your own, you are permitted to make a claim against the driver who caused the accident's insurance company for your pain and suffering. If you selected Limited Tort, generally, you are not permitted to make a recovery.
Tomorrow, we will discuss auto insurance policy suggestions for people in their 20s and 30s.
1If you are injured in an auto accident through no fault of your own and purchase FULL TORT on your auto insurance, you are permitted to make a claim for your lost wages, out of pocket expenses AND your pain and suffering. Pain and suffering is typically the more valuable portion of the claim because it includes all aspects of the injury. It includes your medical treatment and all of the inconveniences that go along with being injured. If you purchase LIMITED TORT on your auto insurance, you are only permitted to make a claim for your out of pocket losses and wage loss. You are generally NOT permitted to make a claim for pain and suffering.