Q: On my auto insurance policy are my husband, age 51, daughter, age 22, and son, age 24. The vehicle is a 2002 Chrysler and we're in the process of purchasing a 2004 Toyota Corolla. So you already know my premium is high. We always carried full tort and high liability coverage, but with this new car we had to resort to asking our agent what the difference was to change to limited tort. Well, the difference is mind-boggling. The premium is $1,471 less per year. I tried to do my homework by reading the differences [between full and limited-tort coverage] stated on Yahoo! All the Web sites from law firms were the ones scaring the daylights out of me if I even considered limited tort. The insurance company Web sites did not do that, but they also did not favor either choice. I am very confused and would sincerely appreciate any advice.

A: As you found out, choosing "limited-tort" coverage can save big bucks.

Pennsylvania motorists were first offered the limited-tort option in mid-1990. The idea was to cut down on the spiraling costs of lawsuits and pass the savings to policyholders.

Many people have a hard time deciding which option to take because they don't really understand what the options mean.

Under limited tort, you receive a state-mandated discount on your policy in exchange for relinquishing certain rights to sue the party at fault in an accident. But you by no means give up all your rights to sue.

First, let's look at the rights you retain.

Basically, you keep your right to sue for unpaid medical bills, lost wages and other out-of-pocket expenses. You also can sue for "pain and suffering" damages if you are seriously injured, or if you're hit by a drunken driver, or an uninsured or out-of-state motorist.

What you relinquish is the right to sue for pain and suffering in the case of a minor injury. Deciding the difference between a minor and serious injury is where things can get sticky.

The state defines a serious injury as one that "results in death, serious impairment of body function or permanent serious disfigurement."

Problems arise when your definition of a serious injury differs from the insurance company's, putting you in the position of having to go to court to prove the severity of your injury if you want to try to collect. In that instance, you could have a hard time finding a lawyer to represent you, because there isn't much money in handling that type of case.

Not surprisingly, lawyers generally say it's worth shelling out the extra insurance premiums for full-tort coverage, which preserves all rights to sue the negligent party.

Statewide, 52 percent of motorists chose the full-tort option in 2001, according to the latest available figures from the Pennsylvania Insurance Department. In Allegheny County, 58 percent selected full tort that year, while across the state in Philadelphia County, a much smaller 34 percent chose it. (Limited-tort coverage probably is more popular in the Philadelphia area because it offers bigger savings to motorists there due to higher insurance rates.)

As with other types of insurance, deciding how much coverage to buy is a personal decision based on cost and the level of risk you're comfortable with. Your agent should be able to help guide you.

In case you're curious, I've always chosen the limited-tort option on my policy.

The insurance department posts information about auto insurance and answers frequently asked questions at its Web site: www.insurance.state.pa.us. You also can order an auto insurance guide by calling the department's toll-free consumer line at 1-877-881-6388.

Good luck, Trina, and be safe so you don't have to worry about your rights to sue.