New Jersey belongs to states observing no-fault car insurance laws. Don’t be fooled, though, by the “no-fault” term, this doesn’t mean a party won’t be found at fault after a car accident. Here are things to know about no-fault laws, particularly their implications to auto insurance and car accidents.
NJ No-Fault Laws
Under New Jersey no-fault laws, injuries from automobile accidents should be covered by your insurance company, regardless of the party at fault. Even if you were a passenger injured in a motor vehicle accident, your own insurance company should cover your medical expenses.
The medical coverage on your automobile insurance policy is accessible through what’s called personal injury protection (PIP), sometimes known as no-fault coverage. PIP covers any reasonable and necessary medical treatment costs and for any equipment used to treat your injuries which are related to the automobile accident. Through PIP, you may also be entitled to reimbursement for other medical-related expenses like essential services and income continuation.
Health Care Primary
You are also eligible for Health Care Primary with your PIP coverage if you have health insurance, provided that insurance is not with one of these plans:
- New Jersey Family Care Plans from UnitedHealthcare Community Plan, WellCare, Horizon NJ Health, AmeriGroup Community Care or Aetna Better Health
- Medicare
- Medicaid
The Health Care Primary option designates your health insurance provider as your principal source of medical coverage for car crash related injuries. You can save as much as 25% on your PIP premium for every vehicle insured under your policy. When selecting the Health Care Primary option, depending upon the language of your health insurance policy, your carrier may have a legal right to assert a lien for any medical expenses related to your auto accident.
Likewise, assessing coverage options in New Jersey will also allow you to select a “limitation on lawsuit” option which will impose restrictions as to what extent you can sue an at-fault driver for non-economic damages, such as pain and suffering. If you select the “limitation on lawsuit” option, the cost of your premium will decrease significantly. However, in doing so, you will be deemed to have waived your legal rights to pursue a claim for non-economic damages unless your sustained injury results in some form of disfigurement or permanent damage. On the other hand, without the “limitation on lawsuit” option, you retain all of your rights to sue the at fault driver. . You should consult with a lawyer to help you understand your options. Suing a liable party could be the best way to get the compensation you deserve and prevent similar accidents as such.
Getting into a car accident can be stressful and problematic. It can have lifelong implications such as loss of quality of life and even death. If you or someone you know has been involved in one, then you should consult our team of attorneys at The Grossman Law Firm right away. We can advise you on how you get the right compensation for your accident including what options you have for states like New Jersey.
