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New Jersey “No-Fault” Car Insurance Impact on Personal Injury Claims

Auto insurance regulations are primarily governed at the state level. New Jersey auto insurance follows a choice no-fault system, which requires every driver to carry his or her own auto insurance and seek coverage thrown their own provider regardless of what party or parties were at fault. However, there are exceptions to this rule which can sometimes allow victims of injurious auto accidents to seek additional damages through a personal injury claim.

Today, our personal injury attorneys will define what no-fault insurance coverage means in New Jersey and how victims of car accidentstruck accidents, and motorcycle accidents may be eligible for compensation through personal injury claims.

Bloomfield, NJ Auto Accident Personal Injury Attorneys Define No-Fault Car Insurance

For New Jersey residents, the vast majority of auto accidents will be handled through their own auto insurance provider. This is due to the choice no-fault auto insurance system which governs privately owned vehicles. It is important to note that this does not apply to all vehicle types, with motorcycles being a notable exception.

Personal Injury Protection, often shortened to “PIP” coverage is required for all car drivers. PIP coverage will provide financial compensation for injuries regardless of which driver or entity was at fault for your car accident. However, coverage is limited based on the nature of your auto insurance. Additionally, non-compensatory considerations such as pain and suffering will not be eligible for coverage under PIP plans.

PIP coverage is intended to cover incurred expenses including medical bills, lost earnings, property damage, and other “economic” damages. These damages all have a concrete value based on real expenses and are considered separately from “non-economic” damages.

When Can I Seek Damages for Auto Accidents Through a Personal Injury Claim in Passaic County?

As previously mentioned, car insurance claims are generally handled through the victim’s own insurance provider as per no-fault regulations. However, under certain circumstances, victims of injurious auto accidents may seek additional compensation through another party’s auto insurance provider. Motor vehicle coverage may have either limited or unlimited rights to sue in New Jersey. Unlimited right to sue enables victims to seek damages for any type of injury that exceeds their policy limit. However, limited right to sue only entitles victims to compensation if they sustain:

  • Serious and/or permanent injuries
  • Significant scarring or disfigurement
  • Wrongful death 
  • Loss of a limb or other body part
  • Displaced fractures
  • Loss of a fetus

In these cases, victims and their families may be eligible for compensation through a third-party personal injury claim. The main distinctions which will allow victims to pursue a personal injury claim rather than a simple PIP claim are 1. the nature and severity of your injuries and 2. proving that another party was liable for your car accident and therefore your injuries.

Successful personal injury or third-party liability claims may entitle victims to compensation to cover damages including pain and suffering, medical bills, loss of consortium, disfigurement, incidental expenses, property damage, funeral expenses, punitive damages, and more.

Contact our Clifton No-Fault Car Insurance Attorneys Today

The auto accident personal injury attorneys of Fredson & Statmore have over 50 years of combined legal experience serving clients from local Passaic County communities including Clifton office, Bloomfield, Wayne, Little Falls, West Milford, Woodland Park, and all of Northern New Jersey. Our firm takes pride in being large enough to handle the most complex cases, while remaining our small firm feel to give our clients the individualized attention they need and deserve. We have extensive experience recovering full and fair compensation for auto accident victims and their families.

If you or a loved one has been injured in an auto accident, please contact us online or through our Clifton, NJ offices by calling today for a free and confidential consultation with a member of our qualified and experienced legal team.