What Is No Fault Insurance in New Jersey?

New Jersey is one of twelve states that have no-fault car insurance laws under which the driver’s own insurance coverage reimburses his or her medical bills after an accident, regardless of who caused the accident. Most New Jersey drivers carry no fault personal injury protection (PIP) insurance that covers at least $15,000 of an injured party’s medical costs. Unlike all but two other states, the Garden State allows drivers to opt out of the no fault system, in which case an injured driver will need to file a lawsuit against a negligent party to collect damages that can be used to pay those medical bills.

Regardless of whether you have no fault insurance or you have opted out of the system, you should always consult with an experienced car accident lawyer after you suffer injuries in a New Jersey car accident. For more than 40 years, the New Jersey personal injury law firm of Kantrowitz, Goldhamer, Graifman, Perlmutter & Carballo, P.C. has helped car accident victims to recover the highest insurance payments provided under their no fault policies and to get the largest damages awards in lawsuits against negligent drivers.

What expenses are covered under a New Jersey no fault auto insurance policy?

The expenses that a New Jersey no fault policy will reimburse depend on whether you carry basic or standard auto insurance coverage. Basic coverage provides a bare minimum benefit that only reimburses your medical costs and expenses up to the dollar limit of your policy. Standard coverage will pay those costs and expenses, and it will reimburse you for wages you lost while recuperating from your injuries and services you need to hire to manage tasks that you are unable to do while you recuperate from your injuries. Standard coverage also provides certain funeral death benefits for car accident fatalities.

Can you still sue the negligent driver that caused an accident if you have no fault insurance?

The concept behind no fault insurance is that you will get compensation for your injuries from your insurance carrier more quickly, but in exchange, you forfeit your right to sue the negligent driver that caused your injuries unless your injuries are severe. That exception covers injuries such as:

• Loss of a limb or loss of use of a body part
• Significant disfigurement or scarring, as from burns or deep wounds that leave an accident victim with facial mutilation
• Displaced bone fractures
• Loss of or serious injury to a fetus
• Permanent, non-recoverable injuries, including paralysis
• Injuries that lead to a fatality

A victim that suffers these kinds of injuries can file a car accident lawsuit to recover the full measure of damages that no fault insurance will not reimburse, including pain and suffering and other non-economic damages.

Call Kantrowitz, Goldhamer, & Graifman After a Car Accident

Your rights and opportunity to recover damages for your property losses and injuries after a New Jersey car accident are affected by the State’s no fault laws and its application of modified comparative negligence laws, which preclude damages recovery if you are more than 51% at fault for causing the accident. 

In all cases, to make sure that you recover the full amount of insurance payments or damages that you are entitled to receive, call the car accident attorneys at Kantrowitz, Goldhamer, Graifman, Perlmutter & Carballo, P.C.. Contact us as soon as possible after your car accident in Bergen County or elsewhere in New Jersey. We will provide direct and straightforward answers to your questions about how New Jersey’s no fault laws will affect your damages recovery.

If you retain our services and we accept your personal injury case, we will pursue every source of damages to get you the largest recovery that you are entitled to receive under the State’s laws.