New Jersey is a no-fault state for auto accident insurance. Though it’s a no-fault state, there are significant differences with other no-fault states as there is a certain limited amount of choice about which no-fault insurance package you choose to take.
The Basic cover is the cheapest and will protect you from being sued if you hit another vehicle nod hurt someone as well as provide you with sufficient compensation for your own injuries. The Standard policy option gives you the option of suing an at-fault driver if you have been injured.
New Jersey Auto Liability Insurance Rules
Bodily injury liability insurance is not mandatory in New Jersey as everyone theoretically is covered by PIP insurance. However, many drivers opt for taking out extra insurance in case they hurt someone so seriously that they are sued outside PIP cover.
Drivers who choose the Standard policy option receive bodily injury insurance of anywhere from a minimum of $15,000 per person to up to a quarter of a million, depending on what you pay as a premium.
Minimum property liability insurance is mandatory and part of both the Basic and Standard options. The minimum is $5,000, but again policyholders can opt to buy more cover. Note that this insurance does not include damage to your own car. You would need to claim against the other driver’s insurance if he / she was at fault.
PIP Insurance Provisions in New Jersey
There are two main options. Basic no-fault insurance covers you and others in your household or in your car when it was hit for $15,000 in compensation per person. There may be higher amounts of compensation available for certain very serious injuries such as spinal injury or other permanent injuries or disfigurement.
You cannot sue an at-fault driver except in limited circumstances, such as significant disfigurement, permanent injury and death. If you are in this situation, you have the right to claim against the other driver’s insurance policy or initiate a lawsuit. Stepping out of the no-fault barrier enables you to claim for non monetary compensation as well, such as for your pain and suffering.
The Standard policy has two more options: “limited right to sue” as well as “unlimited right to sue.” The latter is more expensive but enables you to step right outside the no-fault restrictions altogether if hit and injured by another driver, regardless of how serious your injuries are. Standard insurance also includes whatever is in the basic package as well as bodily insurance protection as discussed in the section above.
How a PI Lawyer Can Help if Hit in New Jersey
Whether you have taken out a Basic insurance cover or a Standard insurance option with unlimited right to sue, you may need the help of a personal injury attorney who can explain the New Jersey rules concerning compensation after an auto accident clearly and discuss your options with you. Most PI attorneys will provide a free initial discussion meeting and if you decide to go ahead with a personal injury claim with their help, will defer legal fees until a settlement is reached. Complete the Free Case Evaluation on this page today!
