What You Need to Know After a Car Accident
You’ve been in a car accident. You’re hurting, you’re frustrated, and you’re trying to figure out what your insurance covers. Maybe you’ve heard that New Jersey is a “no-fault” state—but what does that really mean?
The term “no-fault” can be misleading. While it sounds like no one can be blamed or sued, that’s not the case. In New Jersey, no-fault laws apply to your medical bills first, but they don’t close the door on holding another driver accountable. Here’s what you should know.
What “No-Fault” Means in New Jersey
New Jersey is one of the dozen states that use a no-fault insurance system. That means your car insurance—through a coverage called Personal Injury Protection (PIP)—pays your medical bills and some lost wages after an accident, no matter who caused it.
All drivers in New Jersey are required to carry PIP. The standard policy provides $15,000 per person per accident for medical expenses, although higher coverage levels are available for an additional cost. In some cases, like brain injuries or spinal trauma, coverage may go up to $250,000.
So even if another driver ran a red light or rear-ended you in Shrewsbury, your insurance steps in first to cover medical treatment. That’s the “no-fault” part. But that doesn’t mean the other driver is off the hook.
Choosing Between Limited and Full Tort
When you buy auto insurance in New Jersey, you’re given a choice: “Limitation on Lawsuit” or “No Limitation on Lawsuit.” This choice affects your right to file a claim against another driver for pain and suffering.
If you choose Limitation on Lawsuit, your premiums may be lower, but you can only sue if your injuries meet certain criteria (we’ll go over those next).
If you choose No Limitation on Lawsuit (also called “full tort”), you keep the right to sue for any injury, even if it’s considered minor.
This election can have a major impact after a crash. People often choose the limited option to save money without fully understanding what they’re giving up.
The Verbal Threshold: When You Can Sue
Under New Jersey’s no-fault system, you can’t sue for pain and suffering unless your injuries fall into one of six categories, commonly referred to as the verbal threshold:
Death
Dismemberment
Significant disfigurement or scarring
Displaced fractures
Loss of a fetus
A permanent injury that won’t heal with further treatment
If your injuries meet one of these categories, and the other driver was at least 51% at fault, you can pursue a liability claim outside the no-fault system. These types of cases may involve compensation for pain and suffering, emotional distress, and long-term disability.
Don’t Overlook Uninsured/Underinsured Motorist Coverage
Although New Jersey requires all drivers to have insurance, not everyone complies with the rules. That’s why your policy includes uninsured and underinsured motorist (UM/UIM) coverage. This kicks in if the other driver has no insurance or not enough to cover your losses.
UM/UIM can help cover your medical expenses, lost wages, and even pain and suffering if your injuries are serious. Many people don’t realize how important this coverage is—until they need it.
Steps to Take After an Accident
If you’ve been in a crash, here’s what to do right away:
Call 911 if anyone is injured or if property damage appears to be more than $500.
Get medical attention, even if you feel fine at first.
Report the accident to your insurance company and file a PIP claim.
Keep detailed records of your treatment, out-of-pocket costs, and time missed from work.
Don’t give a recorded statement to the other driver’s insurance company without speaking to an attorney first.
Some injuries may take time to appear. Others may seem minor at first, but they can develop into long-term issues. That’s why it’s essential to act quickly and know your rights.
Why Legal Guidance Can Help
Understanding New Jersey’s auto insurance laws is hard enough under normal circumstances. After a car accident, when you're hurt, overwhelmed, and facing pressure from insurers, it can feel impossible. That’s where The Cassidy Law Firm comes in.
You can rely on us to deal with the insurance companies on your behalf. Our team will help you get your PIP benefits, push back when claims are delayed or underpaid, and pursue additional compensation when your injuries meet the threshold for a lawsuit. Let us handle the details so you can focus on recovering.
New Jersey No-Fault Accident Attorneys
If you were hurt in a car accident in Shrewsbury or anywhere in New Jersey, don’t go it alone. Whether your injuries are minor or severe, we can help make sure the insurance company treats you fairly and that your rights are fully protected. Contact The Cassidy Law Firm today for a free consultation.