New Jersey is one of the few U.S. states that operates under a no-fault accident system. This system significantly impacts how auto accident claims are managed and defines an individual’s rights to compensation and legal action following a crash. All motorists should understand New Jersey’s no-fault laws to safeguard their rights. For more information and skilled representation, please continue reading and contact our Essex County Personal Injury Attorneys to schedule a consultation.
What Are New Jersey’s No-Fault Laws?
In New Jersey, a no-fault state, individuals involved in an auto accident are required to file claims for injury-related expenses with their own insurance company, rather than pursuing the at-fault driver’s insurance. Establishing liability is not necessary to recover compensation for your injuries and losses. No-fault laws intend to streamline the insurance claims process, ensuring prompt compensation for individuals injured in accidents, regardless of who was at fault. By removing the need to prove fault or establish negligence, settling is way less complicated.
Personal Injury Protection (PIP) coverage allows individuals in an accident to recover compensation for medical expenses and lost wages, irrespective of fault. This ensures that motorists have a way to cover their injuries. Every auto insurance policy must include PIP. In addition to PIP coverage, motorists must carry uninsured/underinsured motorist (UM/UIM) coverage. This safeguards you if you are involved in an accident with a driver who has no insurance or insufficient coverage to cover the full extent of your damages. Although the minimum coverage is required, you can purchase higher limits for better protection.
What Are New Jersey’s Insurance Requirements?
New Jersey law requires all vehicles to be covered by at least a basic auto insurance policy. This basic coverage includes $5,000 for property damage per accident and $15,000 per person for PIP. Bodily Injury coverage is not automatically part of the basic insurance coverage. As such, it’s advisable to opt for a standard policy, which offers more comprehensive coverage. The state’s minimum requirements for standard auto insurance policy are $25,000 per person for bodily injury liability, $50,000 per accident for bodily injury liability, $25,000 per accident for property damage liability, and $15,000 per person for PIP.
Under a basic policy, your right to pursue legal action is limited. While New Jersey operates under a no-fault system, this only applies to physical ailments. A limited right to sue restricts your ability to sue the at-fault driver for non-economic damages such as pain and suffering or emotional distress. If your injuries meet the state’s “serious injury” threshold, you may be able to sue for other damages.
For more information, please don’t hesitate to contact an experienced attorney from the Law Offices of Christopher T. Howell, Esq.
