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The Lawsuit Threshold Buried in Your Policy

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Kantrowitz, Goldhamer, Graifman, Perlmutter & Carballo, P.C.

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Written/Reviewed By:

Barry S. Kantrowitz, Esq.

Last Updated: Sep 29, 2026

Read Time: 4 mins

A Ramsey resident hurt in a serious car accident often discovers only after the fact that a choice made years earlier when buying insurance now shapes their entire legal options going forward for a long time to come. New Jersey requires every driver to select one of two distinct lawsuit thresholds when purchasing auto insurance, and that choice determines whether pain and suffering compensation remains available at all after a crash occurs.

New Jersey Requires Every Policyholder to Choose a Threshold

New Jersey Statutes Section 39:6A-8 formally requires every single auto insurance policyholder to elect either a limited or unlimited right to sue for injuries suffered in a car accident on the road. A Ramsey car accident lawyer reviews a client’s own policy selection carefully upon intake for every case taken on, since this earlier decision fundamentally shapes what compensation remains available after a crash occurs later on down the road.

The Limitation on Lawsuit Option Restricts Certain Claims

The limitation on lawsuit option, often called the verbal threshold, prevents a policyholder from suing for pain and suffering unless their injury falls into one of several defined categories set by statute. Qualifying categories under this threshold include:

Death or permanent and significant disfigurement resulting directly from the crash itself and its aftermath
A displaced fracture of any specific bone sustained in the underlying accident that occurred that day
Loss of a fetus caused directly by the underlying vehicle collision that took place
A permanent injury clearly and convincingly supported by strong objective medical evidence gathered afterward

Injuries falling entirely and completely outside these statutory categories generally cannot support a lawsuit for pain and suffering damages under this particular option chosen.

The Zero Threshold Preserves the Full Right to Sue

The no limitation on lawsuit option, sometimes called the zero threshold, fully preserves a policyholder’s complete right to sue for pain and suffering regardless of injury severity, though it comes at a considerably higher annual premium cost overall. A Ramsey car accident lawyer explains this tradeoff clearly to clients working through a new policy purchase, since the cost difference reflects genuine differences in overall legal exposure between the two options available to choose from.

PIP Coverage Applies Regardless of Which Threshold You Chose

Every New Jersey auto insurance policy must include personal injury protection coverage that pays medical expenses and certain lost wages regardless of fault or which specific lawsuit threshold was selected by the policyholder at the outset. Standard PIP coverage generally starts at a base of fifteen thousand dollars in available benefits per accident, though policyholders can purchase considerably higher coverage limits if they choose to do so at additional cost each year.

Failing to Select a Threshold Defaults to the Stricter Option

When a policyholder fails to affirmatively select either option offered, New Jersey law automatically defaults the insurance policy to the more restrictive verbal threshold rather than the unlimited right to sue for full damages. This default often surprises drivers who never realized they had made this important choice at all when originally purchasing their auto coverage years earlier.

Proving a Permanent Injury Requires Specific Medical Evidence

Establishing a permanent injury under the verbal threshold generally requires strong objective medical evidence like imaging studies or physician evaluations rather than a treating doctor’s subjective opinion offered alone. Insurance defense attorneys routinely and aggressively challenge whether this strict evidentiary standard has genuinely been met by the injured party in a given case.

Getting Help After a Ramsey Accident

Understanding which specific threshold applies to a given policy changes considerably how a car accident claim should be built from the very start of the case. Kantrowitz, Goldhamer, Graifman, Perlmutter & Carballo, P.C. has proudly represented injured clients across Ramsey and the surrounding area for many years now, handling cases at every stage. If you were hurt in a recent accident, reach out to discuss how your auto policy selection might affect your claim and available compensation.

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   LWelsh 
 9 days ago
 
 
 Trustindex verifies that the original source of the review is Google. Clever and efficient.
  
 
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   Kenny Perlow 
 30 days ago
 
 
 Trustindex verifies that the original source of the review is Google. KGG Law, and Barry Kantrowitz in particular, set the bar high for what a thorough, practical, strategic, compassionate and smart lawyer can be. Everything about Barry's advice and representation was exemplary and the stress mitigation that resulted was invaluable. On top of that, the ultimate result Barry achieved was beyond what was reasonable to expect and we are forever grateful. Often, people say that you hire a lawyer to prevent a problem. Sometimes, unfortunately, you need an attorney to solve a problem and I could not recommend Barry and his firm any more highly in that regard.
  
 
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   Aliza Ali 
 94 days ago
 
 
 Trustindex verifies that the original source of the review is Google. My dad had a great experience with this law firm. From the very beginning, the team was professional, knowledgeable, and always willing to answer our questions. They kept us informed throughout the entire process and made what could have been a very stressful situation much easier to handle. We truly appreciated their dedication, honesty, and hard work. Thanks to their support, my dad felt confident every step of the way. We are very grateful for everything they did and would highly recommend this firm to anyone looking for reliable legal representation.
  
 
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   Jana Montero 
 97 days ago
 
 
 Trustindex verifies that the original source of the review is Google. I had a wonderful experience working with Sam Smith. He was very responsive, thorough, and easy to work with from start to finish. He walked me through everything clearly and made what started as a very stressful situation for me into something completely manageable. I would not hesitate to recommend him and the firm!
  
 
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   Mike Sakmann 
 103 days ago
 
 
 Trustindex verifies that the original source of the review is Google. I sought legal advice regarding an employment matter and had an excellent experience working with Sam Smith, Esq. at KGG Law. Sam was thorough, attentive, and took the time to listen carefully to my concerns before providing clear, thoughtful guidance. I appreciated the professionalism and care shown throughout the process, and I would confidently recommend KGG Law to anyone in need of legal assistance.
  
 
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   Liz Hecker 
 109 days ago
 
 
 Trustindex verifies that the original source of the review is Google. I can't say enough about this firm. They manage to comfort you during the whole legal process while staying professional and doing what is right. I would recommend them to anyone and also hire them again if I need legal help.
  
 
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   Brandy Miller 
 132 days ago
 
 
 Trustindex verifies that the original source of the review is Google. Kate is the best. She helped me very quickly, and was very attentive with all of my needs. So thankful for her
  
 
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   Mike Greenspan 
 145 days ago
 
 
 Trustindex verifies that the original source of the review is Google. Kate Carballo is a dedicated, passionate, and creative attorney whom I had the pleasure to lecture with at a state trial lawyer's conference. Kate's lecture demonstrated how she uses her innovative and "out-of-the-box thinking" to achieve outstanding results for her injured clients. That Kate is certified by the Supreme Court of New Jersey as a civil trial attorney is a testament to her skills, experience and commitment to excellence.
  
 
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   Jonathan Sampson 
 152 days ago
 
 
 Trustindex verifies that the original source of the review is Google. Was referred to KGG law by a friend and could not have asked for better legal representation. They walked me through every step of the process after my accident and began every call with “ how are you feeling” which was just one example of how much they care about their clients. They handled my case very efficiently, professionally and courteously. My attorney Kate Carballo was a rock star! So clearly experienced, she consistently made me feel at ease with the process. Highly recommend
  
 
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   Vinnie Kung 
 155 days ago
 
 
 Trustindex verifies that the original source of the review is Google. We had a great experience with the team at KGG Law. While it was a traumatic time for our family, they made it very easy for us and explained all of our options. They even performed due diligence to make sure that after our settlement, there would be no further issues which I think is even more important than the settlement itself. Thank you!

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