If you were recently injured in a
car accident in New Jersey, it will be helpful for you to understand how the state
handles car accident claims. In the United States, we have what are called
no-fault insurance states and at-fault insurance states. Which type is
New Jersey and what does it mean to car accident victims (plaintiffs)?
New Jersey is a no-fault insurance state, which means if you’re in
a car accident, your auto insurance carrier is responsible for paying
certain damages from the accident, regardless of fault. So, the other
driver could be clearly at-fault for the accident, but your auto insurance
picks up the tab for your medical bills. This is in contrast to at-fault
states, where the at-fault driver is responsible for paying the other
New Jersey is a No-Fault State
The laws vary in the no-fault states. In New Jersey, drivers must purchase
Personal Injury Protection, otherwise known as “PIP,” which
covers your medical bills if you’re injured in an accident. “PIP
pays if you or other persons covered under your policy are injured in
an auto accident. It is sometimes called ‘no-fault’ coverage
because it pays your own medical expenses no matter who caused the auto
accident,” according to
PIP is broken down into two parts: 1) the first part covers medical treatment
received from doctors, hospitals and other healthcare providers and medical
equipment, and 2) the second part may reimburse you for lost wages or
money spent on paying someone to care for your home or family while you
We recommend purchasing both of the above types of PIP coverage, though
you have the option of only purchasing medical treatment coverage. Bodily
Injury Liability Coverage kicks in if
you cause an accident. This coverage pays for claims made by others who were injured or killed
due to your negligence behind the wheel.
Does Car Insurance Follow the Driver?
We hope this post cleared up any questions that you had about New Jersey’s
no-fault insurance laws. To file a car accident claim anywhere in New Jersey,
contact us today.