Is New Jersey a No-Fault State? Who’s Liable in Car Accidents?
If you are involved in an accident in New Jersey, you will likely want to quickly determine who caused the accident and who should be held liable for your damages. However, New Jersey is one of 12 states that follows a no-fault rule.
While this can complicate things, it is important to know and understand that if you are involved in a crash in a no-fault state like New Jersey, you will likely be using your own car insurance coverage to help you pay for your damages regardless of who caused the car accident or is at fault. There are important exceptions, however, in cases where the injuries are extremely severe.
What exactly does it mean to be involved in a wreck in a “no-fault state”?
Being involved in a wreck in a no-fault state means that the state in which your accident occurred requires all involved parties to file claims with their own insurance companies regardless of who caused the accident. Therefore, if you are involved in an accident in a no-fault state, you will not need to waste time trying to prove that the other party is at fault to recover compensation for your lost income and medical bills.
However, if you seek compensation to cover the damage your car experienced in the accident, your insurance policy will not cover this. Instead, you will need to file a claim against the at-fault party’s insurance company and prove that they were at fault for the accident.
What type of car insurance coverage does New Jersey require all drivers to carry?
New Jersey requires all drivers and vehicle owners to carry certain types of car insurance coverage. This required coverage includes the following:
- Personal Injury Protection (PIP): PIP insurance covers any costs associated with your injuries and medical treatment. It also covers medical treatment for your passengers or family members living in your household regardless of fault. The minimum amount that New Jersey requires all drivers and vehicle owners to carry in PIP insurance is $15,000 per person or accident.
- Liability insurance: Liability insurance covers the damage that you cause to another person’s vehicle in a crash. The minimum amount that you must carry in liability insurance is $5,000. If you want liability insurance that covers bodily injuries, you can ask your insurance company about voluntarily purchasing this and adding it to your policy.
- Uninsured and underinsured motorist coverage: Uninsured and underinsured motorist coverage is another type of insurance required in New Jersey. This coverage protects you if you find yourself involved in a wreck with a driver who does not have any or inadequate insurance coverage. Even though driving with inadequate or no car insurance in New Jersey is illegal, many drivers still do it. Therefore, by carrying the appropriate uninsured and underinsured motorist coverage, you can ensure that your damages are paid for if another driver lacking insurance coverage ever strikes you.
Although you may have the minimum required insurance coverage, keep in mind that increasing your coverage is always a good idea. This will help you cover severe, catastrophic, and devastating injuries that can be extremely costly.
What costs will my insurance cover after a crash in Cherry Hill?
Being involved in a crash in a no-fault state allows you to file a claim with your own insurance company. If your claim is approved, your insurance company will cover certain costs no matter who is determined at fault for the crash. The following are the costs that your insurance company will likely cover:
- Emergency room visits
- Hospitalizations
- Prescriptions
- Medical devices and equipment (wheelchairs, crutches, canes, walkers, beds)
- Ambulance rides
- Doctor’s office visits
- Clinic or urgent care visits
- Physical therapy
- Occupational Therapy
- Part of your lost wages
- Funeral costs
- Burial costs
What if my expenses exceed my insurance coverage or policy?
If you were involved in a serious car accident, there is a strong chance that your injuries will be severe and catastrophic. New Jersey makes exceptions to the no-fault rule in this type of case. This is because your medical expenses are likely much higher than what is available on your insurance policy. When this happens, you may be eligible to file a car accident lawsuit against the responsible party and seek compensation for your damages.
However, New Jersey follows a modified comparative negligence system, meaning that you must be able to prove that the other party is 51 percent or more at fault for the accident to successfully file a suit and seek any type of financial recovery. Here are a few of the severe and catastrophic injuries that may incur costs that exceed your insurance coverage or policy:
- Amputations
- Permanent injuries or disabilities (traumatic brain injuries, spinal cord injuries, etc.)
- Severe scarring and disfigurement
- Loss of bodily function or senses
- Multiple fractured or crushed bones
- Paralysis
Severe and catastrophic injuries typically require multiple surgeries, around-the-clock medical care and treatment, life-long rehabilitation, medications and prescriptions, and even psychiatry and counseling appointments. Therefore, it is not unusual or uncommon for these injuries to quickly exceed your insurance coverage or policy, so New Jersey allows you to choose between a limited right and an unlimited right to sue when purchasing car insurance. However, before you can sue the at-fault party for compensation, you may need to use all of what is available on your own insurance policy first.
Have you recently suffered injuries in a car accident in New Jersey? If so, please do not hesitate to contact the Cherry Hill car accident lawyers from Ferrara & Gable as soon as possible. Our team is aware and current on the laws surrounding accidents that occur in no-fault states. Call our office or submit our contact form to schedule a free case evaluation at our Cherry Hill office today. We happily serve all of South Jersey.