New Jersey No Fault Insurance Explained

If you live in New Jersey and own a car, you need to understand no-fault insurance. This special type of insurance affects everyone who drives in the state. After a car accident, no-fault insurance changes how you get help with medical bills and other costs. Knowing how this system works can help you get the care you need faster and make better choices after an accident.

What Is No-Fault Insurance?

New Jersey uses a no-fault insurance system. This means that after a car accident, your own car insurance company pays for your injuries first. You do not have to prove who caused the accident. You do not have to wait for the other driver's insurance company to investigate. Your insurance helps you right away, no matter who was at fault.

This is very different from other states. In many places, the person who caused the accident has to pay for the injuries. Their insurance company might argue about who was at fault. This can take months or even years. But in New Jersey, your own insurance starts paying quickly so you can focus on getting better.

Understanding Personal Injury Protection (PIP)

Personal Injury Protection, or PIP, is the coverage that makes no-fault insurance work. Every driver in New Jersey must have PIP coverage on their car insurance. When you buy car insurance in New Jersey, PIP is always included. You cannot drive legally without it.

PIP covers you, your family members, and any passengers in your car if there is an accident. It even covers you if you are hit by a car while walking or riding a bike. The basic PIP coverage in New Jersey is $15,000, but you can buy more coverage if you want extra protection.

What Does PIP Cover?

Medical Expenses

Doctor visits, hospital stays, surgery, physical therapy, X-rays, MRI scans, prescription medicine, medical equipment like crutches or wheelchairs

Lost Income

Money you lose when you cannot work because of your injuries. PIP pays part of your regular wages while you recover.

Essential Services

Help with tasks you normally do but cannot do because of injuries. This includes housework, yard work, or childcare.

Death Benefits

Funeral and burial costs if someone dies in the accident

How to Use Your PIP Coverage

After an accident, you should see a doctor as soon as possible. Tell your doctor about the accident and all your injuries. Your doctor will send the bills to your car insurance company. You do not have to pay the bills yourself first. The insurance company pays the doctor directly in most cases.

You should also call your insurance company right away to report the accident. They will open a PIP claim for you. Keep all your medical records and bills. Save any paperwork the doctor gives you. Write down when you miss work because of your injuries. All of this information helps your insurance company process your claim.

PIP coverage starts working immediately after an accident. You do not have to wait for police reports or fault determinations. This quick payment helps you get medical care without worrying about money while you recover.

When Can You Sue the Other Driver?

Even though New Jersey has no-fault insurance, you can still sue the other driver in some situations. If your injuries are serious enough, you can go outside the no-fault system and file a lawsuit. New Jersey has something called the verbal threshold and the monetary threshold.

The verbal threshold means you have a serious injury. This includes broken bones, permanent injury, permanent scarring, loss of a body part, or loss of a baby during pregnancy. If you have one of these injuries, you can sue the person who caused the accident for pain and suffering.

The monetary threshold is different. If your medical bills are more than a certain dollar amount, you can also sue. This amount changes over time, so check with a lawyer to see if your case qualifies.

Two Ways to Sue in NJ

Verbal Threshold

Monetary Threshold

You have a serious injury like a broken bone, permanent scar, loss of body part, or lost pregnancy

Your medical bills go over a specific dollar amount set by law

Important Things to Remember

First, see a doctor quickly after any accident, even if you feel okay. Some injuries do not show up right away. Back pain, neck pain, and headaches can appear days after an accident. If you wait too long to see a doctor, the insurance company might say your injuries did not come from the accident.

Second, keep good records of everything. Save all medical bills, doctor notes, and receipts for medicine. Take photos of any visible injuries. Write down how the accident affects your daily life. If you cannot play with your kids or do your hobbies, write that down. All of this information can be important later.

Third, be careful when talking to insurance companies. Even your own insurance company is a business. They want to pay as little as possible. Do not give recorded statements without talking to a lawyer first. Do not sign papers you do not understand. If the insurance company denies your claim or offers too little money, you have the right to fight back.

Fourth, know your deadlines. New Jersey has time limits for filing insurance claims and lawsuits. If you wait too long, you might lose your right to get compensation. Talk to a lawyer soon after your accident to protect your rights.

Getting Help After Your Accident

Understanding no-fault insurance and PIP coverage is the first step to protecting yourself after an accident. The system is designed to help you get medical care quickly without fighting about who caused the accident. Your own insurance pays first so you can focus on healing.

However, insurance companies do not always treat people fairly. If you have serious injuries, or if the insurance company denies your claim, you may need legal help. A lawyer who understands New Jersey car accident law can fight for your rights and make sure you get all the benefits you deserve. Remember, you paid for your PIP coverage with your insurance premiums. You have the right to use it when you need it most.