The Basic Policy for Personal Injury Protection (PIP) in New Jersey
In New Jersey, all motor vehicle operators are required under the law to have a “basic policy” of liability insurance. Technically, New Jersey is a “no-fault” state. That means that, when you’ve suffered injury or loss in an automobile crash, you seek benefits from your own insurer, who may then pursue reimbursement from the at-fault party’s insurer.
Under New Jersey law, you must meet minimum requirements with your motor vehicle accident insurance policy. The policy must have at least $5,000 worth of coverage for property damage. That applies only to damage to another person’s property (including a car). You must also have at least $15,000 in personal injury protection (PIP), which covers injuries suffered by anyone covered under your policy (including you). The $15,000 PIP coverage is per person, per accident. You can get as much as $250,000 per person, per accident for serious types of trauma, including brain or spinal cord injury.
There’s no requirement with the basic policy that you carry coverage for the personal injuries suffered by another person. As a consequence, if you cause injury to a third party, you can be personally responsible for any medical expenses or losses suffered by another person that are not covered by his or her PIP provisions.
With the basic policy, the policyholder (and all other covered individuals under the policy) is contractually bound by what’s known as the “limited right to sue.” Under the limited right to sue, an injured person may only bring a lawsuit for damages under limited circumstances, including where injuries include:
- The loss of a body part
- Significant scarring or disfigurement
- The loss of a fetus
- A displaced fracture
- A permanent injury
Contact Our Office
At the Cintron Firm, LLC, we bring more than 14 years of experience individuals who have suffered any type of personal injury, including physical injuries in a work-related accident. To set up an appointment, contact our office at 201-791-1333 or (201) 535-0323 or send us an e-mail.