Verbal threshold

A verbal threshold is a type of tort threshold that uses words rather than dollar amounts. In a state with one, you can sue the at-fault driver for noneconomic damages, such as pain and suffering, only if your injury falls into a category described in the law. Otherwise your own personal injury protection pays your economic losses and you cannot sue for the rest.

According to the Insurance Information Institute, Florida, Michigan, New Jersey, New York and Pennsylvania use verbal thresholds; in New Jersey and Pennsylvania they apply only to drivers who chose the limited option. The wording differs by state but covers similar ground: death, significant and permanent injury, permanent serious disfigurement, and serious impairment or loss of an important bodily function. New York's law lists specific categories, including fractures and dismemberment. Florida allows a suit for permanent injury, significant and permanent scarring or disfigurement, or death.

Example: two drivers in a verbal-threshold state are hurt in crashes. One has soft-tissue injuries that heal in six weeks; the other has a fracture. The first is usually limited to PIP benefits, while the second may qualify to sue (hypothetical). Whether an injury qualifies is often disputed and depends on medical evidence. A monetary threshold uses medical costs instead. See no-fault vs at-fault states.