Is New Jersey a No-Fault State for Car Accidents?

Car Accidents • April 30, 2023

Experiencing a car accident can be deeply distressing and may leave you feeling as though your life has spiraled out of control. However, if you find yourself in a car crash in New Jersey, help is available. The state’s no-fault car accident laws are in place to offer you some financial relief.

In New Jersey, every driver must have no-fault insurance coverage. This means that if you have an accident, each insurance company involved will take care of their insured’s medical bills and losses.

What is No-Fault Insurance?

If you’re driving in New Jersey, you need to have PIP insurance as part of your car insurance policy. PIP insurance covers medical expenses for all the passengers in the car, plus the driver, regardless of whose fault the accident was.

A minimum of $15,000 in PIP coverage is required, but policies can include up to $250,000 in coverage for certain injuries. 

It is noteworthy that PIP insurance solely provides coverage for injuries sustained by you and passengers in your vehicle, and not for any liability arising from damages caused to other drivers.

Eligible medical expenses may include hospital bills, doctor’s visits, medication, and rehabilitation. PIP insurance also offers coverage for lost wages if you are unable to work due to your injuries, as well as essential services benefits if you require assistance with daily tasks. In the event of a wrongful death, PIP insurance can provide death benefits and coverage for funeral expenses.

In some cases, you will be able to file a lawsuit against the at-fault driver to recover any losses that exceed your policy limits. This will, at least in part, depend on whether you opted for limited-tort or full-tort auto insurance. This is where having an experienced Jersey City car accident lawyer on your side can make a world of difference. They can help you navigate the legal process and work to ensure you receive the compensation you deserve.

Limited Tort Insurance in NJ

Limited tort car insurance coverage is a cheaper option for drivers in New Jersey. It means that in exchange for lower premiums, you waive some of your after a car accident. 

If you have limited tort insurance and get into a car accident, your insurance company will cover your medical bills and the repairs for your vehicle, no matter who was responsible for the accident.

However, you lose the ability to sue for pain and suffering unless specific circumstances apply. These cases include severe issues such as serious impairment, loss of limb, permanent disfigurement, and injury that prevents you from working for the rest of your lifetime.

Full Tort Insurance in NJ

While full tort car insurance costs more than limited tort insurance, it provides greater protection in the case of an accident. With full tort insurance, you have the peace of mind of knowing that you have the right to sue an at-fault driver if necessary, which can be especially important if you suffer serious non-economic injuries, like pain and suffering or loss of enjoyment of life.

The laws and what you’re entitled to after car accidents in no-fault states can be a bit confusing, but we are here to help. If you need help after a car accident in New Jersey, contact our personal injury attorney in Jersey City today to schedule a free consultation.