Yes. New Jersey is a no-fault car insurance state. This means that after most car accidents, your Personal Injury Protection (PIP) coverage pays for your medical treatment first, regardless of who caused the crash.
However, “no-fault” does not mean no one is responsible. It also does not mean you can never sue the at-fault driver. Your right to bring a claim depends on your injuries, your insurance policy, and whether you selected the limitation on lawsuit option or the no limitation on lawsuit option.
What Does No-Fault Mean in New Jersey?
In a New Jersey car accident, no-fault insurance generally means your own auto insurance company pays your medical bills through PIP coverage. This applies whether another driver ran a red light, rear-ended you, or otherwise caused the crash.
PIP may cover medical expenses and, depending on the policy, may also provide limited income continuation and other benefits. The purpose of this system is to ensure medical bills are paid without waiting for a determination of fault.
Property damage works differently. If another driver damaged your car, the property damage claim is usually handled through the at-fault driver’s insurance or your own collision coverage, if available.
Does New Jersey Require PIP Coverage?
Yes. New Jersey drivers are generally required to carry PIP coverage as part of their auto insurance. The amount of available PIP coverage depends on the policy purchased.
A standard policy may include different PIP limit options. A basic policy provides more limited coverage. Because policy choices affect what benefits may be available after an accident, it is important to review your declarations page after a crash.
Many people do not know their PIP limit until they are injured and start receiving medical bills.
Can You Sue After a Car Accident in New Jersey?
Yes, but your ability to sue for pain and suffering depends heavily on the lawsuit option in your auto insurance policy.
New Jersey drivers typically choose between:
Limitation on lawsuit, also called the verbal threshold
No limitation on lawsuit, sometimes called no threshold
If you selected no limitation on lawsuit, you generally have broader rights to pursue pain and suffering damages after an accident caused by another driver.
If you selected a limitation on lawsuit, your right to sue for pain and suffering is restricted unless your injuries meet one of the legal categories recognized under New Jersey law.
What Is the Verbal Threshold in New Jersey?
The verbal threshold is a cost-saving option offered in NJ auto insurance policies. It can prevent an injured person from recovering damages for pain and suffering unless the injury meets a specific standard.
Qualifying injuries may include:
A permanent injury does not always mean total disability. It generally means a body part or system has not healed to function normally and will not do so with further medical treatment.
This is one reason medical documentation is so important after a car accident. Imaging, specialist evaluations, treatment records, and physician opinions can all affect whether an injury meets the required threshold.
What Damages Can You Recover After a New Jersey Car Accident?
Depending on the facts, an injured person may be able to pursue compensation for losses such as:
Medical expenses not covered by PIP
Lost income
Reduced earning ability
Pain and suffering
Permanent injury
Scarring or disfigurement
Out-of-pocket accident-related costs
The available damages depend on the severity of the injury, the insurance coverage involved, and whether the injured person is subject to a limitation on the right to sue.
What Should You Do After a New Jersey Car Accident?
After a crash, protect both your health and your legal rights. Even in a no-fault state, the steps you take early can affect your claim.
You should report the accident, seek medical attention, follow treatment recommendations, keep copies of medical bills and records, and avoid giving recorded statements without understanding how they may be used. You should also review your auto insurance policy to identify your PIP limits and lawsuit option.
If another driver caused the crash, do not assume your case ends with PIP benefits. You may still have a claim beyond your own insurance coverage.
Talk to a New Jersey Car Accident Lawyer
At The Cassidy Law Firm, we help injured people understand their rights after car accidents in New Jersey. We can review your insurance coverage, explain how New Jersey’s no-fault rules apply, and determine whether you may have a claim against the at-fault driver. If you were injured in a car accident in Monmouth County or elsewhere in New Jersey, connect with us today to explore your options.