There are 12 states in the U.S. that operate under a no-fault accident system, one of which is New Jersey. This system plays an important role in how auto accident claims are handled and in establishing an individual’s right to compensation and legal action after a collision. Understanding New Jersey’s no-fault laws is important for any driver to ensure their rights are protected. To learn more and secure skilled representation during your case, contact a Monmouth County auto accident attorney and set up your free consultation today.
What Are New Jersey’s No-Fault Laws?
New Jersey is a no-fault state, meaning that when an auto accident takes place, both drivers and anyone involved must file a claim for injury-related expenses through their own insurance provider. It does not matter who is at fault and who caused the accident. Proving liability is not necessary in this situation to recover compensation for an injury and its associated losses.
The purpose of no-fault laws is to simplify the insurance claims process, reduce the number of lawsuits that arise from car accidents, and ensure that victims receive fast medical care and compensation. When there is no requirement to provide evidence of one party’s fault, settlements can be made quicker and less complex.
What is PIP?
PIP (Personal Injury Protection) is New Jersey’s no-fault coverage. This is a mandatory part of every auto insurance policy issued in the state. PIP pays for medical expenses and injury-related costs resulting from a car accident, regardless of who is liable for the crash.
PIP can cover the following after an auto accident.
- Medical expenses like the cost of treatment at hospitals and doctors, medication, surgeries, etc.
- Reimbursement for lost wages from taking time off to recover
- Reimbursement for the cost of hiring care or transportation
Financial losses associated with an injury may be compensated under Personal Injury Protection.
What is the Required Auto Insurance?
New Jersey law requires that all vehicles be covered by at least a basic policy. Basic policies provide coverage for property damage of $5,000 per accident and PIP of $15,000 per person. Bodily injury coverage is not automatically included in the basic insurance package.
It is recommended to secure at least a standard policy, which covers more significant damage. The state’s minimums for a standard auto insurance policy include bodily injury liability of $25,000 per person and $50,000 per accident, property damage liability of $25,000 per accident, and PIP of $15,000 per person.
With the basic policy, you have a limited right to sue after an accident. Although NJ operates under a no-fault system, it is only for physical injuries. A limited right to sue means that you may not be able to pursue legal action against an at-fault driver for pain and suffering, property damage, emotional distress, and more.
To learn more and obtain skilled legal advice, contact an experienced personal injury attorney today.