New Jersey has a no-fault auto insurance system, which affects how car accident claims work. If you get hurt in a crash, your own insurance pays for your medical bills and some other costs, no matter who was at fault. This setup makes the claims process more manageable, but it also limits when you can sue the other driver. Knowing how New Jersey no-fault insurance laws work can help you understand your options and protect yourself after an accident.
What Is No-Fault Insurance?
No-fault insurance requires drivers to carry personal injury protection (PIP) coverage as part of their auto insurance policy. This means that after a car accident, your insurer pays for your medical expenses and other related costs up to your policy limits rather than seeking compensation from the at-fault driver. No-fault insurance aims to reduce litigation and speed up payments for accident victims.
How No-Fault Insurance Works in New Jersey
In New Jersey, every driver must carry a minimum amount of personal injury protection (PIP) coverage. PIP benefits cover medical expenses, lost wages, and other costs related to injuries sustained in an auto accident. However, this system also restricts when an accident victim can file a lawsuit against the responsible party.
Drivers in New Jersey have the option to choose between a limited right to sue and an unlimited right to sue when purchasing their insurance policy:
- Limited Right to Sue – This option restricts your ability to file a lawsuit unless you suffer a serious injury as defined by law.
- Unlimited Right to Sue – This option allows you to file a lawsuit for pain and suffering regardless of the severity of your injuries.
Suppose you opted for a limited right to sue policy. In that case, you can only take legal action if your injuries meet the NJ serious injury threshold for lawsuits, which includes permanent injuries, significant disfigurement, or other severe conditions.
What Does Personal Injury Protection (PIP) Cover in New Jersey?
PIP benefits in New Jersey provide coverage for:
- Medical Expenses – Covers doctor visits, hospital stays, surgeries, rehabilitation, and necessary medical treatments related to the accident.
- Lost Wages – If your injuries prevent you from working, PIP may compensate for lost income.
- Essential Services – This covers the cost of household services you’re unable to perform due to your injuries, such as cleaning or childcare.
- Death Benefits – If an accident results in a fatality, PIP provides compensation to the deceased’s dependents.
While PIP coverage helps with immediate costs, it doesn’t cover non-economic losses like pain and suffering. This is where the right to sue selection in your policy becomes critical.
Limited vs. Unlimited Right to Sue in NJ
Choosing between a limited right to sue and an unlimited right to sue policy significantly impacts your legal options. While a limited right to sue policy generally comes with lower premiums, it restricts your ability to seek compensation for non-economic losses. An unlimited right to sue policy provides full legal rights but often costs more.
If you are unsure which option is best for you, consulting an attorney can clarify how your choice affects your rights after an accident.
When Can You Sue After a Car Accident in NJ?
Under New Jersey no-fault insurance laws, you can only file a New Jersey auto accident lawsuit under specific circumstances. If you chose the limited right to sue option, you may only pursue compensation if your injuries meet the NJ auto insurance lawsuit threshold:
- Loss of a body part
- Significant disfigurement or scarring
- Displaced fractures
- Loss of a fetus
- Permanent injury (one that will not heal to function normally)
- Death
If your injuries meet one of these criteria, you may be eligible to pursue additional compensation through an auto insurance litigation New Jersey claim.
Car Accident Pain and Suffering Compensation in NJ
Pain and suffering damages are only available to those who opt for the unlimited right to sue or meet the serious injury threshold. If you qualify, you may seek compensation for:
- Physical pain
- Emotional distress
- Loss of enjoyment of life
- Permanent disabilities or impairments
Since these losses are subjective, insurance companies often dispute their value. Having a skilled New Jersey personal injury attorney on your side can help maximize your settlement.
What to Do If Your No-Fault Insurance Claim Is Denied
Insurance companies sometimes deny claims, arguing that injuries are not covered or that treatment is unnecessary. You have legal options if your no-fault insurance claim process leads to a denial. An experienced New Jersey personal injury attorney can challenge the denial and help you recover the compensation you are entitled to.
Common reasons for claim denials include:
- Insurance company disputes the necessity of medical treatment
- Failure to file the claim within the required deadline
- Incomplete or incorrect paperwork
- Allegations of pre-existing injuries
If your claim has been denied, Brach Eichler Injury Lawyers can help you file an appeal and fight for your rights.
How a Personal Injury Lawyer Can Help with No-Fault Claims
Dealing with NJ auto accident injury legal options and the complexities of no-fault insurance can be overwhelming. A New Jersey personal injury attorney can assist with:
- Reviewing your insurance policy and PIP benefits
- Challenging claim denials
- Filing a lawsuit if your injuries meet the NJ serious injury threshold for lawsuits
- Negotiating with insurers to maximize your compensation
- Representing you in court if necessary
If you have been injured in a car accident, you do not have to handle the legal process alone. Brach Eichler Injury Lawyers has extensive experience with auto insurance litigation in New Jersey cases and is ready to help.
Get Legal Help for Your No-Fault Insurance Claim
Understanding New Jersey’s no-fault insurance laws is essential when dealing with an auto accident. Whether you need assistance with a denied claim, questions about PIP benefits, or legal representation for a serious injury lawsuit, Brach Eichler Injury Lawyers is here to help. Reach out to us by phone today at (973) 364-8300 or visit our contact page to schedule a consultation with an experienced New Jersey car accident attorney.
Written by: Brach Eichler Injury Lawyers Last Updated : March 17, 2025We are the trial attorneys with the experience and knowledge to get you the results you deserve. At Brach Eichler Injury Lawyers, we take time to get to know you, as well as your case. We are committed to excellence. It is important for our team to understand your fears, concerns and expectations. We are always available to answer any questions, and are willing to come to you if you are unable to come to us.
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