Types of Auto Insurance Policies and Coverages
Limitation On Lawsuit Policy (also known as the Verbal Threshold policy):
Advantages:
- less expensive than the no limitation on lawsuit policy.
Disadvantages:
- in order to recover, you must prove by objective evidence that your injuries meet one of the six (6) criteria mandated by the Verbal Threshold Statute (see description below)
- imposes the Limitation on Lawsuit on your spouse and all of your children and step-children living in your household
- requires you to obtain a sworn statement from your doctor(s) when filing suit, certifying that you sustained an injury in accordance with one of the six criteria noted below
- at risk of dismissal by the Court based upon only medical reports and description of the injuries.
Criteria for Injuries: If you are subject to the "limitation on lawsuit" (also known as the "verbal") threshold, you are not permitted to recover any damages for your injuries unless you prove that the injuries satisfy at least one of the following criteria:
- Death
- Dismemberment (loss of a body part)
- Loss of a fetus
- "Significant disfigurement" or "significant scarring". Note: "significant" refers to the subjective view of an observer and not the opinion of the injured person)
- Displaced fracture (simple fractures do not satisfy the threshold unless they cause a "permanent injury" after healing)
- A "permanent injury" within a reasonable degree of medical probability.
Back to Different Types of Policies (advantages and disadvantages)