Key Takeaways:
New Jersey’s no-fault insurance requires you to use your own PIP coverage for medical bills, regardless of fault.
- Your policy’s verbal threshold determines whether you can sue an at-fault driver for pain and suffering.
- Understanding your PIP limits and acting quickly are critical to obtaining necessary medical care after a collision.
How Does New Jersey’s No-Fault (PIP) System Work After a Cherry Hill Car Accident?
In New Jersey, no-fault insurance means that your own auto insurance policy covers your initial medical treatment after a collision, regardless of who caused the car accident. You do not need to wait for the other driver’s insurance company to accept fault or approve medical expenses. Instead, you file a claim directly with your own provider to begin treatment immediately.
What Does PIP Cover After a Car Accident?
Personal injury protection (PIP) is the cornerstone of New Jersey’s no-fault system. To explain New Jersey PIP coverage simply: your own insurer handles your initial medical costs, which include ambulance fees, hospital stays, diagnostic testing, physical therapy, and prescription medications. Depending on your specific policy selections, PIP may also cover lost wages if your injuries prevent you from working.
Understanding who pays medical bills after a car accident in New Jersey is straightforward once you understand that, in most instances, your PIP pays first.
However, PIP does not compensate you for pain, suffering, or emotional distress; you must exhaust your PIP limits or meet specific legal criteria before seeking further compensation from the negligent driver.
What Is the Verbal Threshold (Limitation on Lawsuit Option)?
The verbal threshold in New Jersey, or the limitation on lawsuit option, restricts your ability to sue an at-fault driver for non-economic damages such as pain and suffering. If you selected this option on your auto insurance policy, state law mandates that your injuries must fall into one of six specific categories to file a lawsuit:
- Death
- Dismemberment
- Significant disfigurement or scarring
- Displaced fractures
- Loss of a fetus
- A permanent injury within a reasonable degree of medical probability
A permanent injury means a body part or organ has not healed to function normally and will not heal to function normally with further medical treatment.
The verbal threshold exemptions are legally binding: If you chose the “No Limitation on Lawsuit” option, these restrictions do not apply, and you retain the full right to sue for pain and suffering regardless of the injury’s severity.
When Can You Step Outside No-Fault and Sue the At-Fault Driver?
You can step outside the no-fault system and file a third-party claim against the at-fault driver when your situation meets the verbal threshold criteria or if you opted out of the limitation on lawsuit option. You also need to step outside the no-fault system to recover property damage, as PIP only covers medical expenses and economic losses. In New Jersey, you generally have a limited window to take legal action, as the statute of limitations for a personal injury claim is two years from the date of the collision.
How Do You Protect Your PIP Benefits in Cherry Hill?
To protect your PIP coverage, you must seek prompt medical attention and notify your insurance carrier about the collision immediately. Delaying treatment can lead to claim denials, as adjusters may argue your injuries were not caused by the crash. Attend all medical appointments and follow your prescribed treatment plan carefully.
Frequently Asked Questions
What is PIP in New Jersey?
Personal injury protection (PIP) is the mandatory no-fault medical coverage on your auto insurance policy that pays your medical bills after a crash.
Can I sue the other driver in a no-fault state?
Yes, but only if you selected the “No Limitation on Lawsuit” option or if your injuries meet the specific, permanent criteria outlined in the state’s verbal threshold.
Does PIP cover my property damage?
No. PIP only covers medical expenses and limited economic losses. Property damage claims are filed against the at-fault driver’s liability coverage.
Who pays my medical bills if I am a passenger?
If you own a car with PIP insurance, your own policy pays your medical bills. If you do not own a car but live with a family member who does, their PIP policy covers you.
Cherry Hill Car Accident Lawyer at the Law Offices of David J. Karbasian, PC, Will Help You Navigate No-Fault Insurance
If you have suffered an injury from a car accident in New Jersey and need to know where to turn, call the Cherry Hill car accident lawyer at the Law Offices of David J. Karbasian, PC. Our trusted legal team helps victims hold inattentive drivers accountable and pursue fair compensation for their injuries. Call us at 856-600-HURT or complete the online form for a free consultation. Our offices are located in Cherry Hill, NJ.
