Every driver in New Jersey must carry the minimum amount of automobile insurance before registering the vehicle and driving on the public roads. If you get involved in an automobile accident in New Jersey, you will need to navigate the state’s no-fault laws to file claims and seek compensation from the insurance companies. At Moon & Associates, we believe that educating our customers on the laws and regulations regarding car accidents is crucial. Below are some specific New Jersey Insurance requirements governing automobile coverage in the State.
What is the No-Fault Law in New Jersey?
The No-Fault Law in New Jersey currently requires three different types of no-fault car insurance. Personal injury protection (PIP) is a state regulation that requires drivers to carry a minimum level of auto insurance to pay for their and their passengers’ injuries in the case of an accident, whether or not they were at fault for the collision. No fault insurance does not cover car damage, rather it provides drivers and their passengers with insurance coverage through the host driver’s policy for medical expenses and lost wages resulting from a car accident, regardless of who is at fault. Liability insurance, on the other hand, provides financial protection if you injure someone else or cause property damage in the course of driving. Bodily injury liability coverage will pay for injuries you cause to the other driver and their passengers. Property damage liability coverage will pay for damage you cause to someone else’s property. Lastly, if you have a standard car insurance policy in New Jersey, you’re required to maintain Uninsured Motorist Coverage (UM) in which your insurance company will pay for your repair bills if you’re involved with a driver that lacks coverage or flees the scene.
Basic vs. Standard Policy in New Jersey
New Jersey offers choice no-fault which means you can choose between a standard and basic car insurance policy. A basic policy, though less expensive, provides you with a limited right to sue and limited protection if you’re injured and not at fault. With a basic policy you may not sue the at fault driver for pain and suffering unless you have a permanent injury as defined by the New Jersey Department of Banking and Insurance. On the other hand, with a standard policy, you can choose between the limited or unlimited right to sue. The unlimited right to sue allows you to sue the at fault person irrespective of how minor the injury.
Who is Covered Under the No-Fault Law?
Under the No-Fault Law, all private passenger automobiles registered or garaged in New Jersey are required to carry PIP insurance. This includes drivers who own or lease a car. Under New Jersey PIP, named insureds and resident members of their families may be entitled to PIP benefits if they are injured as pedestrians in an accident involving a qualifying automobile.
What Does PIP Cover?
PIP insurance covers medical expenses incurred as a result of a car accident, such as ambulatory, hospitalization, diagnostic, medical and surgical services, and rehabilitative therapy. It also covers lost wages due to an inability to work as a result of a car accident. Under the No-Fault Law, insurance coverage for property damage is not required, and therefore is not included in PIP insurance.
What Happens if the Accident Results in a Lawsuit?
Under the No-Fault Law, injured parties can only sue for pain and suffering if their injuries meet certain qualifications. If you purchased an insurance policy with a verbal threshold, also called a limitation on lawsuits, you are unable to sue the other party for your injuries, regardless of fault, unless you sustained one of the following injuries: dismemberment, significant disfigurement, significant or permanent scarring, displaced fracture, loss of a fetus, or significant loss of bodily function for at least 90 days. If your injuries do not meet these qualifications, you will not be able to sue for pain and suffering, even if the other driver was at fault. However, if you opted for the zero threshold coverage, with a higher premium, there is no limitation on lawsuits allowing the insured to sue for pain and suffering.
What are the Penalties for Not Carrying PIP Insurance?
Drivers without proper insurance can face severe penalties, including fines, license suspension, and even criminal charges. New Jersey considers driving uninsured a serious offense often resulting in a maximum $1,000 fine for first time offenders along with a one-year license suspension. Additionally, your car may be impounded if you fail to provide proof of insurance.
Enlist the Help of an Experience Attorney in New Jersey Today!
The No-Fault Law in New Jersey plays a crucial role in ensuring that drivers are protected if there is a car accident. At Moon & Associates, we believe that educating our customers on the state’s regulations and requirements is essential to ensuring their safety and well-being. By understanding the No-Fault Law in New Jersey, you can feel confident that you are prepared in case of an accident. If you have any questions about PIP insurance or the No-Fault Law, please don’t hesitate to contact us at (201) 272-1077 in Englewood Cliffs, NJ. Our team of experts is always available to answer any questions you may have.