The Cassidy Law Firm Blog

Friday, August 14, 2020

Is New Jersey a No-Fault State?

Being injured in a car accident is often an overwhelming and complicated situation to find yourself in. If this has happened to you, it will be good for you to understand the relevant insurance laws should you wish to seek compensation for your injuries. For instance, some states follow a “fault” based insurance system and others follow a “no-fault system.” This can have significant consequences for seeking compensation after sustaining injuries in an auto accident.

Is New Jersey a No-Fault State?

New Jersey falls into the minority of the states which follow a no-fault insurance system. To clear up a common misconception, no-fault does not mean that fault is not assigned after an accident nor does it mean that fault is completely irrelevant to a car accident. What “no-fault” means is that, if you are in a car accident, your car insurance company will be responsible for paying out for certain losses, regardless of who is at fault. In other words, even if another driver is obviously the cause of the accident, your insurance will be responsible for paying for your resulting medical bills.

New Jersey law requires drivers to purchase Personal Injury Protection (PIP) coverage. This is insurance used in no-fault systems. PIP pays you or anyone else covered by your insurance policy for injuries sustained in an auto accident. PIP coverage pays out regardless of who is at fault for the accident. That is why it is referred to as a “no-fault” system. Your PIP coverage will pay out no matter who is at fault for the accident.

There are two parts to PIP coverage. The first part covers cost of medical care and this is required coverage. The second part is optional coverage and it pays out for lost wages or the cost of paying someone else to take care of your home or family while you were incapacitated due to your injuries. New Jersey allows individuals to select their health insurance coverage for PIP coverage. Selecting Health Care Primary for PIP coverage provides that your health insurance carrier will be the primary source of medical coverage should you be injured in a car accident. By selecting this type of coverage, you can save up to 25% on your PIP premium insurance coverage per insured individual on your policy.

You are also given the option of full tort or limited tort coverage. Full tort coverage grants you an unlimited right to sue. Limited tort coverage puts a restriction on your right to sue an at-fault driver for your economic damages unless you have sustained a permanent injury.

New Jersey Personal Injury Attorneys

If you have been injured in a New Jersey car accident, the knowledgeable attorneys at The Cassidy Law Firm are here to help you in any way we can. We are here to answer your questions and guide you through the insurance claims process. For trusted personal injury legal support, contact us today.

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