What term describes state laws that restrict an injured party's right to sue until a specified threshold of damages is met?

The term that describes state laws that set a specific threshold of damages that an injured party must meet before being allowed to sue is known as a tort threshold. This legal concept is designed to limit the number of lawsuits arising from auto accidents by requiring individuals to demonstrate that their injuries exceed a particular severity or monetary value.

Tort thresholds often establish a minimum level of injuries—such as significant disfigurement, permanent disability, or medical expenses above a certain amount—that must be proven for a plaintiff to pursue a legal claim for damages against the other party involved in an accident. This approach aims to encourage insurance compensation mechanisms and reduce the burden on the court system by filtering out less severe claims.

The other terms refer to different aspects of auto insurance laws and structures. Compulsory no-fault pertains to insurance systems that require drivers to carry personal injury protection without regard for fault. Add-on benefits involve additional coverage options in insurance policies, and choice states grant consumers the option between traditional liability and no-fault insurance. Each of these options differs significantly from the concept of establishing a tort threshold targeted at limiting lawsuits based on the severity of damages.