New Jersey operates under a no-fault insurance system, which affects how auto accident claims are handled. Whether you've been involved in a minor collision or a severe crash, it's essential to understand what no-fault insurance means for you and your decision to pursue compensation.
This blog will walk you through the basics of New Jersey’s no-fault laws, how they impact your ability to seek damages, and when you might need an auto accident lawyer to fight for the full compensation you’re seeking.
What Is No-Fault Insurance in New Jersey?
In New Jersey, no-fault insurance means that after an auto accident, your own insurance company will cover your medical expenses and other financial losses, regardless of who caused the crash. This type of insurance is known as Personal Injury Protection (PIP).
PIP coverage helps drivers avoid lengthy legal battles to determine fault for minor injuries and ensures that medical bills are paid promptly. However, no-fault insurance covers only economic damages, such as medical expenses and lost wages, leaving out non-economic damages like pain and suffering unless specific conditions are met.
What Does PIP Insurance Cover?
PIP insurance is designed to cover a variety of accident-related expenses, including:
- Medical Expenses: PIP will cover your necessary medical costs, from doctor visits and hospital stays to surgeries and ongoing rehabilitation. For instance, if you need physical therapy after a severe back injury or prescription medications to manage pain, these expenses can be claimed under PIP.
- Lost Wages: If your injuries keep you from working, PIP provides financial support by covering a portion of your lost income. Whether you’ve been out for weeks recovering from surgery or need extended time off due to chronic pain, PIP helps ease the financial strain of being unable to work.
- Essential Services: PIP also covers the cost of everyday services you’re unable to perform due to your injuries. For example, if you’re unable to clean your home, take care of your children, or manage other household tasks, PIP can cover the cost of hiring help, such as a housecleaner or a childcare provider, during your recovery.
In New Jersey, drivers must purchase a minimum amount of PIP coverage, but you can choose higher limits for better protection.
Limitations of New Jersey’s No-Fault Insurance
While PIP insurance covers medical bills and some other economic losses, it does not compensate for non-economic damages like pain and suffering, emotional distress, or loss of enjoyment of life. This is one of the major limitations of the no-fault system, particularly if your injuries have a long-term impact on your life.
This brings us to an important aspect of New Jersey law: the serious injury threshold, which determines when you may pursue compensation beyond PIP.
Meeting the Serious Injury Threshold in New Jersey
Although New Jersey is a no-fault state, you can step outside the no-fault system and file a lawsuit against the at-fault driver if your injuries meet the state’s serious injury threshold. This threshold includes injuries such as:
- Permanent injuries or disfigurement
- Significant scarring
- Loss of a body part
- Fractures
You are entitled to seek additional compensation for non-economic damages, such as pain and suffering, through a personal injury lawsuit. An experienced auto accident lawyer can help determine if your injuries meet this threshold and guide you through the legal process.
Understanding Comparative Negligence in New Jersey
New Jersey follows a modified comparative negligence rule in personal injury cases. This means that more than one driver can share responsibility for the accident, and your compensation may be reduced based on your percentage of fault.
For example, if you are found to be 20% responsible for the accident, your total compensation will be reduced by 20%. However, if you are found to be more than 50% responsible, you will not be able to recover any compensation from the other party.
It's essential to work with a knowledgeable lawyer to protect your rights, avoid being unfairly blamed for the accident, and secure the maximum compensation available to you.
Steps to Take After an Auto Accident in New Jersey
If you’ve been in an auto accident in New Jersey, taking the following steps can protect your rights and strengthen your case:
- Seek Medical Attention: Your health and well-being should be your top priority after an accident. Even if you feel fine, certain injuries may not present symptoms immediately. It’s essential to get medical care right away to document your injuries and ensure that any potential issues are addressed.
- Contact the Police: Though it’s required that you contact the police if the accident resulted in at least $500 worth of damages, injury, or death, doing so even if the damage seems minor is always recommended. A police report can serve as valuable evidence in determining fault and supporting your claim. In most cases, once filed, you can expect this report to become available within a week.
- Gather Crucial Evidence: If you’re able to do so safely, gather evidence from the accident scene. Take photos of the vehicles involved, any visible injuries, and the surrounding area, including road conditions, street signs, lights, and even the sky, especially if bad weather was involved. Collect contact information for any witnesses, as well as the other driver’s insurance details.
- Notify Your Insurance Company: Under New Jersey law, you are required to notify your insurance company within 10-30 days following an accident. Be cautious when speaking with insurance adjusters and stick to the facts. Avoid admitting fault or speculating about how the accident occurred because without a proper investigation, you may not know the true cause.
- Consult with an Auto Accident Lawyer: Navigating the complexities of New Jersey’s no-fault insurance system can be challenging, particularly if your injuries are severe. Consulting with an experienced auto accident lawyer like Corradino & Papa can help you fight for the full compensation you’re seeking, whether through your PIP coverage or by pursuing a personal injury lawsuit.
Taking the right steps after an accident can strengthen your case. However, an auto accident lawyer can provide critical assistance throughout these steps, especially if you face challenges in securing fair compensation.
The Role of an Auto Accident Lawyer
An auto accident lawyer can be an invaluable resource in the aftermath of an accident. They can help you understand your insurance coverage, gather the necessary evidence, and negotiate with insurance companies on your behalf. If your injuries meet the serious injury threshold, your lawyer will build a strong case to seek additional compensation through a lawsuit.
By working with a lawyer, you can safeguard your rights and seek compensation for your injuries, lost wages, and other accident-related expenses.
What to Expect When Filing a Claim or Lawsuit
Filing an auto accident claim in New Jersey involves several key steps:
- Submit a claim to your insurance company: Start by filing a claim under your PIP coverage to get your medical expenses covered.
- Determine fault and gather evidence: Your lawyer will help investigate the accident and determine if the other driver was at fault.
- Negotiate with insurance companies: Your lawyer will negotiate with both your insurance company and the at-fault driver’s insurance company to secure a fair settlement.
- File a lawsuit if necessary: If a settlement can’t be reached or if your injuries meet the serious injury threshold, your lawyer will file a lawsuit on your behalf.
Contact Corradino & Papa for Trusted Auto Accident Representation Across New Jersey
If you’ve been hurt in an auto accident caused by someone else’s reckless actions, you deserve comprehensive support and fair compensation. The experienced attorneys at Corradino & Papa are here to guide you through New Jersey’s no-fault insurance complexities and help you explore all your options for recovery. Serving clients throughout New Jersey—including Paterson, Newark, Elizabeth, Jersey City, Clifton, and surrounding areas—our team is committed to protecting your rights.
Call us at 973-381-1706 or fill out our online contact form to schedule a confidential consultation. Let Corradino & Papa stand by your side as you pursue the compensation you deserve.
Disclaimer: The information provided is not legal advice and does not establish an attorney-client relationship.