Yes, New Jersey is a no-fault state. It means that whenever a car crash happens, the driver’s insurance company will pay for their damages and injuries regardless of who is responsible for the fault.
However, New Jersey follows a verbal threshold law that puts a limit on the capability to sue for pain and suffering in some special cases. Working with an experienced car accident lawyer in Jersey City can help you understand your options under the New Jersey choice no-fault system.
A no-fault law means that after a car crash, all the injured parties and both the drivers will file a claim. They will seek compensation, regardless of the fault, from their own car insurance providers. To qualify for no-fault insurance benefits, it is not mandatory to prove fault or negligence.
Depending on your policy type, you can still pursue a no-fault car accident claim with the help of an attorney if you suffer a permanent injury, significant disfigurement, or other qualifying serious injuries. Fault determination still plays a role when it comes to suing the other driver, especially if you’ve chosen full tort coverage under your policy.
According to New Jersey’s insurance laws, drivers are required to carry personal injury protection (PIP), bodily injury liability, property damage liability, and uninsured motorist insurance. These minimum requirements ensure drivers have basic medical coverage and financial protection in case of an accident.
Drivers select between a Basic Policy, which offers limited tort rights and lower coverage, or a Standard Policy, which allows for full tort or limited tort options with higher coverage limits.
Understanding these insurance claims options under New Jersey law is crucial for selecting the right policy and ensuring proper accident reporting and fault determination.
At Omni Injury & Accident Law, we represent clients throughout New Jersey, including Fort Lee, Bergen County, Essex County, Hudson County and other surrounding areas.
Every New Jersey driver must carry certain minimum insurance requirements, including:
PIP coverage for medical expenses
Liability insurance for bodily injury and property damage liability
Uninsured motorist insurance
Collision coverage (optional but strongly recommended)
Under New Jersey’s verbal threshold (also called the lawsuit threshold or tort threshold), you must select either a limited right to sue or an unlimited right to sue option in your policy:
Choosing the right threshold impacts your ability to seek compensation after a no-fault car accident settlement. This decision is directly influenced by the Automobile Insurance Cost Reduction Act, which aimed to offer more affordable car insurance while limiting unnecessary lawsuits.
Although New Jersey is a no-fault state, that doesn’t mean you can’t take legal action. A car accident can disrupt every part of your life from physical recovery to hefty medical costs and lost income. If your injuries meet the legal threshold such as permanent injury, significant disfigurement, or loss of a body function you may be entitled to file a claim or seek a no-fault car accident settlement.
Often, navigating insurance requirements, insurance limits, and insurance payout rules can be overwhelming. But you don’t have to go through this alone. Call Omni Injury & Accident Law to schedule a free consultation. Let our skilled team pursue the car accident settlement available to you under the law.
