How does Tort coverage differ from No Fault coverage regarding claims?

Tort coverage differs from No Fault coverage primarily in the aspect of legal recourse for individuals involved in an accident. Under Tort coverage, individuals have the right to pursue legal action against the party at fault, which includes the opportunity to claim compensation for pain and suffering as part of the damages. This legal avenue allows for a broader range of claims, reflecting a system that holds drivers accountable for their actions.

In contrast, No Fault coverage is designed to streamline claims processing by limiting the ability to sue for damages, except in specific circumstances. This system provides benefits for medical expenses and lost wages without determining fault, which means compensation for pain and suffering is generally not available unless injuries meet certain severity thresholds.

The other options do not accurately capture the distinctions between Tort and No Fault coverage. The claims handling time may vary depending on numerous factors not directly tied to the type of coverage. The benefit limits can vary by policy and are not a definitive distinction between these two coverage types. Additionally, the availability of coverage is typically not restricted based on retirement status.