New Jersey is a no-fault car accident state. This means that if you’re in a car accident, regardless of who is at fault, you’ll turn to your insurance provider to cover your damages. However, despite what many people think, this doesn’t mean that fault isn’t assigned to either driver in an accident.
What Does No-Fault Mean?
If you’re in a car accident in New Jersey, and you need medical care, your insurance company will cover that care. It doesn’t matter if you or the other driver is responsible for the accident. If you’re injured as a passenger in someone else’s vehicle, you’ll also turn to your insurance provider to cover your costs. This is referred to as Personal Injury Protection (PIP). PIP covers medical care, lost wages, and other necessary costs.
Using Your Health Insurance Provider as Your PIP Provider
New Jersey requires all drivers to carry PIP coverage of at least $15,000. However, this doesn’t necessarily have to come from your insurance provider. If you have health insurance, you may be able to designate them as your PIP provider, which can save you on your monthly insurance premium.
Some insurance policies, like New Jersey Family Care Plans, are not eligible for this. If you’re considering doing this to save on your monthly insurance premium, you’ll want to check with your health insurance to find out if you qualify.
Opting Out of the No-Fault System
New Jersey laws also allow drivers to opt out of the no-fault system if they prefer. If you choose this, you’re no longer subject to the limitations of filing a lawsuit after an accident occurs. This means that if you’re in an accident and the other driver is at-fault, you may be able to seek compensation from their provider.
If you don’t opt out, which most drivers don’t, there are limitations on filing a personal injury lawsuit after an accident.
New Jersey is a Modified Negligence State
New Jersey is a modified negligence state. This means that if you are more than 50% at-fault for an accident, you can’t seek compensation. If you are deemed to be less than 50% responsible for the accident, you can seek compensation. Your compensation amount will be reduced by the percentage in which you’ve found to be at fault.
Some people like that New Jersey is a no-fault state because it means that you can receive compensation faster following an accident. It’s also comforting knowing that your medical bills are covered regardless of who is at fault. But, there are some considerations of a no-fault system including a higher insurance premium and no coverage for property damages.
This means that you may be responsible for the cost of your property damages, including repairs to your vehicle. A full coverage insurance policy can help you cover these costs, which often include comprehensive and collision coverage.
If you were in an accident in New Jersey, a lawyer can help you navigate the no-fault laws. The system has its pros and cons, but it can also be confusing navigating following a car accident.
Contact a Little Falls Personal Injury Lawyer to Discuss Your Car Accident Case in New Jersey
Did you or a loved one sustain serious injuries due to a car accident in New Jersey? Don’t let the medical bills pile up while you wait for the negligent party or their insurance company to do the right thing. Right now, you need an aggressive personal injury attorney on your side, fighting to get you the compensation you need, want, and deserve. The skilled attorneys at Camili & Capo, PA represent clients injured because of a car accident in North Caldwell, Cedar Grove, Montclair, Clifton, and throughout New Jersey. Call (973) 834-8457 or fill out our online contact form to schedule a free consultation about your case. We have an office conveniently located at 1 Lower Notch Road, Little Falls, NJ 07424, as well as offices in Hackensack, Newark, and New Brunswick, NJ.
The articles on this blog are for informative purposes only and are no substitute for legal advice or an attorney-client relationship. If you are seeking legal advice, please contact our law firm directly.