Lee D. Gaber - The Cycle Attorney

Ask the Attorney

As many of you know I have been representing bikers who have been involved in accidents for over thirteen years. During this time period the most common question I am asked is “If I am injured, who is going to pay for my medical bills, lost wages, property damage and pain and suffering? The answer most clients expect is “the person responsible for your accident”. Although this answer may be true in some cases, the more accurate answer is … “it depends”.

Assuming the other person is 100% responsible and has adequate insurance coverage, then that individual’s insurance company will pay for the damages you suffered. Unfortunately, most drivers do not carry enough insurance to fully compensate you if you are truly injured. In other words, if you are seriously injured, and also incur property damage, wage loss and medical bills, if the person who caused the accident only has the state mandated minimum insurance of $15,000.00 in liability coverage and $5,000.00 in property damage, realistically speaking, that is all you are going to be able to recover. Sounds pretty unfair doesn’t it?

Unfortunately, the Commonwealth of Pennsylvania only requires drivers to carry $15,000.0 in liability insurance and $5,000.00 in property damage coverage. Over the years I have had to explain this situation to my clients, many of whom have suffered severe injuries and financial hardships. In response many ask if we can sue the individual who caused the accident, personally, to recover more money. The answer to this question, realistically is no. Unfortunately, most people who purchase minimum insurance coverage on their vehicles generally do not have any assets, which would be obtainable, in an amount over and above the $15,000.00. In order to prevent this potentially disastrous situation, I have lectured to many of the area motorcycle clubs and handed out material during local bike events instructing all bikers to purchase as much insurance as you can afford on your own motorcycle, specifically with regard to uninsured and underinsured coverage. These are the coverages that allow you to make a claim against your own insurance company, in the event that the individual responsible for the accident has no insurance coverage, or only carries the minimum coverage as discussed above. Uninsured and underinsured coverage is the most important coverage that you can obtain in order to insure that you and your family’s financial security is not at risk should you ever be involved in an accident.

I have been asked by several client’s to explain what is meant by “Full Tort” and “Limited Tort” in Pennsylvania and by the “Verbal Threshold” and “Zero/No Lawsuit Threshold” in New Jersey and whether these “limitations on lawsuits” apply when someone is injured while riding their motorcycle. The answers are as follows:

In Pennsylvania the legislature has directed that all insurance companies must offer the “Full Tort” and “Limited Tort” options on all automobile insurance policies.

However, in order to be fully protected while driving a car, as well as your motorcycle, it is extremely important to select the ‘Full Tort” option on your automobile insurance policy. In many cases the price difference between the two options will be no more than two hundred dollars ($200.00).In New Jersey, drivers are given the choice of the “Verbal Threshold” or “Zero/No Lawsuit Threshold”. Essentially, these two thresholds are the equivalent of the “Full Tort” and “Limited Tort” options in Pennsylvania. However, in New Jersey if you choose the “Verbal Threshold” on your automobile policy, you must prove that you sustained a permanent injury and that this injury has had a substantial impact on your lifestyle. This threshold has proven to be very difficult to pierce and as a result, many motorist who are injured in motor vehicle accidents are finding themselves unable to collect damages for pain and suffering. In order to avoid the perils of the “Verbal Threshold” you need to inform your automobile insurance agent and/or company, that you wish to choose the “Zero/No Lawsuit Threshold” option when you purchase or renew your automobile insurance policy.There are two critical differences with regard to the thresholds in Pennsylvania and New Jersey. First, in New Jersey, if you do not advise your insurance representative that you wish to purchase the “Zero/No Lawsuit Threshold” option, you will automatically be given the “Verbal Threshold” option on your automobile insurance policy. This is in direct contrast to Pennsylvania where if you do not affirmatively make a choice between the “Full Tort” and the “Limited Tort” options, you will automatically be given the “Full Tort” option. The second and extremely critical distinction between Pennsylvania and New Jersey, is that in New Jersey, if you are injured while operating your motorcycle, and own an automobile in which you have selected the “Verbal Threshold” option, you will automatically be subject to the “Verbal Threshold” – regardless of the fact that you were operating your motorcycle at the time of the accident. As unfair as this may seem, this has been the law in the State of New Jersey since 1997 and remains the law today.The only way to avoid being saddled with the “Verbal Threshold” option while operating your motorcycle, is to purchase the “Zero Threshold” option on your automobile insurance policy. Ultimately, in order to insure that you will be fully compensated if you are ever injured in a motorcycle or automobile accident in either Pennsylvania or New Jersey, is to select the “Full Tort” option on your Pennsylvania automobile policy and the “Zero Threshold” option on your automobile insurance policy in New Jersey.