About a dozen U.S. states have implemented some form of ‘no-fault‘ auto accident laws. Under a no-fault system, car accident victims typically turn to their insurers for compensation of specific damages, such as medical costs and lost income.
New Jersey is among the few no-fault states that allow drivers a no-fault choice for auto insurance.
After an accident, drivers who buy “basic” insurance are often limited to no-fault coverage. But your ability to sue increases if you purchase “standard” car accident coverage.
Be sure to seek legal counsel as quickly as possible if you have been hurt in an automobile accident in New Jersey. The Jersey City car accident attorneys at Legal Giant can review your insurance policy and advise you accordingly.
What Is No-Fault Law?
In states with no-fault laws, all injured parties must file claims with their respective auto insurance companies to get compensation, regardless of who was at fault for the collision.
One does not need to demonstrate fault or prove negligence to be eligible for no-fault insurance coverage.
On the contrary, in a fault-based state, liability is vital; an accident victim may file a lawsuit against the motorist who caused the accident. But they must first demonstrate that the defendant was at fault.
What Are New Jersey’s Insurance Requirements?
New Jersey requires all car owners to buy and maintain the “basic” auto insurance policy before registering their car and taking it out on the road. New Jersey law currently requires three distinct forms of no-fault auto insurance:
- Personal injury Protection (PIP): Covers your medical costs and those of your passengers following an accident regardless of whether you were at fault.
- Liability insurance: Covers the losses incurred by other parties in an automobile collision you cause. Property damage liability insurance ($5,000) is the only liability coverage mandated in New Jersey. However, bodily injury liability coverage is available at extra cost.
- Uninsured motorist coverage: Insures you financially in the event of a collision with a New Jersey driver operating a vehicle without the required insurance.
These are legal minimums for auto insurance that all New Jersey drivers must carry, but there is always room to increase the level of protection.
A typical PIP coverage policy includes a minimum of $15,000. But most New Jersey motorists opt to get $250,000 in PIP coverage to cover severe or fatal injuries.
Limited Right to Sue vs. Unlimited Right to Sue Insurance
The only forms of auto insurance included in “basic” coverage in New Jersey are those listed above. Motor vehicle owners in the state can also choose a “standard” coverage that provides bodily injury liability coverage.
The standard coverage covers costs if a policyholder is sued or found at fault for an accident. In New Jersey, a motorist with standard coverage can choose between “limited” and “unlimited” rights to sue coverage with a standard auto insurance policy.
Limited right to sue
The limited right to sue costs a car owner less money compared to the unlimited right to sue. With this policy, an injured person can file a lawsuit against the at-fault driver in New Jersey without being bound by the state’s no-fault rules and PIP coverage.
A policyholder may also bring legal action against the responsible party after someone passes away. But this option is only available for victims with serious injuries, such as:
- Disfigurement
- Loss of a limb
- Displaced bone fractures
- Permanent injury
- The loss of a fetus
Unlimited right to sue
There is no injury limit with the unlimited right to sue coverage. Any victim with this insurance can claim compensation against the at-fault party following an automobile accident resulting in any damage or injury.
In addition to monetary compensation, a victim may also be entitled to pain and suffering damages, which are not necessarily covered by the limited right to sue option.
Who Is Covered Under New Jersey No-Fault Car Insurance?
Apart from the policyholder, no-fault/PIP auto insurance often covers the following:
- Any person operating the policyholder’s car with the policyholder’s consent (if the guest driver doesn’t carry their insurance)
- The policyholder’s family members (if they don’t have their auto insurance policy)
- Passengers in the policyholder’s car (if they don’t have their insurance)
You must demonstrate that you sustained one of the above injuries in the collision and that the other motorist was responsible for the crash to be awarded compensation in a civil action.
A Jersey City car accident attorney can compile evidence of the other driver’s negligence and provide a compelling argument on your behalf for losses exceeding those covered by PIP insurance.
What Losses Are Covered by No-Fault Car Insurance In New Jersey?
New Jersey’s no-fault/PIP insurance provides the following benefits depending on whether you select “Basic” or “Standard” options when purchasing an automobile insurance policy:
- Medical costs and any appropriate equipment required for treating your injuries from an automobile accident (automatic with Basic or Standard coverage)
- Compensation for any lost income resulting from your injuries in the vehicle accident (Standard policy only)
- Reimbursement of “replacement services” when you are unable to do specified responsibilities due to your injuries (such as home chores or caring for family members) (Standard insurance only).
- “Death and funeral benefit” coverage if a person dies from accident-related injuries (Standard policy only).
In New Jersey, PIP policyholders can pick higher deductibles to reduce their PIP rates. They may also reduce the cost of their vehicle insurance by designating their health insurer as their primary source of protection for hospital bills following a car accident.
Notably, drivers who qualify for Federal Medicaid may also purchase a “Special Automobile Insurance Policy” from New Jersey. Contact the New Jersey Department of Banking & Insurance to learn more about the SAIP option.
Does New Jersey No-Fault Insurance Cover Damage to My Car?
Unlike injuries resulting from auto accidents, vehicle damages don’t apply under a no-fault/PIP claim in New Jersey. A vehicle damage claim can only be made against the at-fault motorist in this state.
That implies you can file a PIP claim with your insurer for your injuries and a separate third-party claim against the other driver’s insurance provider (or even a lawsuit) for vehicle damage.
Contact A Jersey City Car Accident Attorney Today
Filing a claim on a New Jersey vehicle insurance policy might be complicated due to all the limits and coverage options available.
You may be left wondering what to do next and how your injuries will affect you in the long term. You want to reclaim control of your life, but you are unsure where to begin.
That is why you need a skilled Jersey City car accident attorney who can represent you and fight for you because of this.
At Legal Giant, we can help you get an aggressive lawyer who will work with you throughout the claims process and get you maximum compensation.
Our partner attorneys have years of combined experience handling auto accident claims, and they understand the complexities of the New Jersey no-fault law.
Contact us at (855) 740-5024 for a case evaluation today.
