This concept relates to a specific type of auto insurance coverage available in some jurisdictions. Under this option, an individual’s right to sue for pain and suffering damages following a motor vehicle accident is restricted. For example, if an individual sustains minor injuries in a car accident, this election might prevent them from recovering non-economic damages, such as compensation for physical pain or emotional distress, unless the injuries meet a certain threshold of severity.
The primary purpose of this election is to offer a lower premium for auto insurance policies. This cost savings is achieved by limiting the insurer’s exposure to claims for non-economic damages. Historically, the introduction of this option aimed to balance the affordability of auto insurance with the right to seek compensation for injuries sustained in vehicular accidents. The availability of this option allows policyholders to make an informed decision based on their individual risk tolerance and financial circumstances.
