How Car Accident Compensation Works in New Jersey

New Jersey is a “choice” no-fault state. That means that after an accident, regardless of who was at fault, injured victims typically file claims with their own insurance providers. New Jersey requires drivers to purchase one of two types of car insurance plans: “standard” or “basic.”

Most New Jersey drivers purchase standard policies. Standard plans typically offer more coverage than basic policies, which, in general, are less expensive and provide less coverage.

New Jersey applies the “modified comparative fault” law to car accident compensation. After a crash, fault is divided among all those involved. Compensation is then reduced by a victim’s percentage contribution to the accident. For example, if someone is 20 percent at fault in a crash, and their damages are $100,000, their compensation would be reduced by 20 percent to $80,000. With very few exceptions, injured car accident victims cannot collect damages if they are 51 percent or more at fault.

Each state has its own car insurance laws. In New Jersey drivers are required to purchase one of two types of insurance plans – basic or standard. some of which come with options. The state sets minimum requirements for both types.

• Standard. At minimum, New Jersey drivers who choose standard plans must purchase no less than 25/50/25 coverage. That’s $25,000 per injured person per crash, $50,000 total per crash, and $25,000 for property damage per crash. Drivers also must purchase Uninsured Motorist/Underinsured Motorist (UM/UIM) and Personal Injury Protection (PIP) coverage. 
• Basic. At minimum, New Jersey drivers who choose basic plans must purchase no less than $5,000 in property damage liability, and $15,000 per person PIP. The minimum basic plan does not include bodily injury liability (BI), but drivers can purchase up to $10,000 BI as an option. 

The following are common types of car insurance in New Jersey:

• Personal Injury Protection (PIP) pays for medical expenses you or other people listed in the policy incur after a crash. It's sometimes called “no-fault” coverage because PIP will payout regardless of who caused an accident. For both standard and basic plans, the minimum requirement is $15,000. 
• Bodily Injury (BI) pays for injuries resulting from an accident you caused. In addition to medical bills, this insurance compensates others for pain and suffering and economic damages like lost wages.  The minimum in a standard plan is $25,000 per person per accident and $50,000 total per accident. BI is optional for basic policyholders. 
• Property Damage (PD) pays for damage to other people’s vehicles after an accident caused by you. The minimum is $25,000 for standard policies and $5,000 for basic plans. 
• Uninsured/Underinsured Motorist (UM/UIM) pays for your bodily injuries and property damage if you are involved in an accident caused by an uninsured or underinsured driver.  In a standard plan, coverage is available up to the amount selected for liability coverage. UM/UIM is not available in basic plans.

Including:

• Collision pays to repair physical damage or replace your vehicle after an accident. Insurers are not required to offer this coverage to basic plan holders. Auto loan lenders often require drivers to purchase this type of protection while the contract is active.
• Comprehensive pays for physical damage to your vehicle that occurred due to things other than a collision. Not all events are covered, but things like vandalism, hitting an animal, broken windshield, and theft typically are. Insurers are not required to offer this coverage to basic plan holders. Auto loan lenders often require drivers to purchase this type of protection while the contract is active.

There are several factors that help determine how much your car accident claim may be worth. These include fault, injury severity, lost wages, and your attorney’s skills. There are two main types of damages you can collect – economic and non-economic. 

• Economic damages are losses with verifiable costs, like medical bills, emergency medical fees, physical therapy, lost wages, replacement services like childcare, accessibility modifications, vehicle damage, and diminished future earning potential. 
• Non-economic damages are losses that are harder to put a price on like emotional anguish, pain and suffering, and loss of consortium (for a spouse) or guidance (for a child). 

In very rare cases, “punitive damages” are available in addition to economic and non-economic damages to victims of extreme negligence. Punitive damages are meant to punish outrageously negligent drivers, like drunk drivers, and discourage future incidents in the community. 

Experienced New Jersey car accident lawyers calculate compensation packages that put the highest value on your health and comfort. They know how to find and collect the evidence you need for a strong case the insurance companies cannot ignore.

In general, yes, you can file a car accident lawsuit in New Jersey but there are stipulations and the type of plan you choose affects the type and amount of damages you can seek through the court. 

When purchasing insurance, standard policyholders choose whether they want a plan that allows an “unlimited right to sue” or a “limited right to sue” for non-economic damages like pain and suffering or loss of enjoyment. With an unlimited plan, a victim can seek pain and suffering compensation for any injury. With a limited plan, the victim can only sue for such damages if they have a qualifying “serious” injury like the loss of a body part, significant disfigurement or scarring, displaced fracture, loss of a fetus, permanent injuries, and death. 

Most crashes can be settled through the insurance claims process without filing a lawsuit. Still, you may want to consider a car accident lawsuit under the following circumstances:

• You are entitled to compensation for pain and suffering. 
• Your damages exceed policy limits. Injured car accident victims can sue at-fault drivers for their personal assets if their expenses and losses are above maximum policy limits.  
• Negotiations have broken down. If the insurance company won’t make you a substantial settlement offer, your attorney can file a lawsuit that demands the compensation you deserve.  

With a few exceptions, an injured car accident victim has 2 years from the crash date to file a claim or lawsuit. If this statute of limitations expires, your claim or lawsuit will likely be dismissed. In some situations, an injured victim has even less time to file a claim. An experienced New Jersey car accident attorney can review your case and figure out how the laws apply. They can ensure that you meet the legal requirements for maximum compensation.

What if the other driver doesn’t have insurance?

New Jersey drivers are required to have PIP coverage. You must also carry UM/UIM if you have a standard plan. Both PIP and UM/UIM can be used if the at-fault driver is uninsured. PIP pays for your medical expenses regardless of accident fault. And UM/UIM is available for accidents with uninsured or underinsured drivers as well as hit-and-runs in which the at-fault driver is never identified.

Many people expect to be treated fairly when they file a claim with their insurance provider for PIP or UM/UIM benefits. But it rarely works out this way. All insurance adjusters, even those you pay, have one job - to save the company money by rejecting claims and lowering settlements. 

An experienced New Jersey car accident attorney can fight the insurance company on your behalf. They work on contingency, which means there are no upfront or out-of-pocket expenses for their services. A car accident lawyer’s fee is a percentage of the final award. Therefore, if they don’t win, you don’t pay. 

The insurance company has lawyers. Don’t be the only one at the negotiation table without an attorney.  A New Jersey car accident lawyer can be by your side throughout the claim process fighting for the results you deserve. If you were injured in a New Jersey car accident, contact a lawyer for a free consultation today.