New Jersey Laws

A. New Jersey is one of a very few states that uses something called "choice no fault" rules. This means that you can either opt in or opt out of "no fault" rules. You must decide whether you are opting in or out when you buy your insurance - you can't do it after a car accident has happened.

New Jersey law requires that you be provided with two options when buying car insurance:

• Full Tort
• Limited Tort

If you opt for Full Tort, then you are opting out of the no fault system. If you select Limited Tort, however, then you are opting in, meaning you cannot file a lawsuit for most car accident situations. Instead, you will be limited to making a claim with your insurance provider. This claim will cover your medical bills and your lost wages if a car accident injury causes you to miss work. However, it will not allow you to obtain any compensation for pain and suffering or for emotional distress. Limited tort coverage allows you to save some money on your policy at the time when you buy car insurance.

If you opted into the "no fault" system by purchasing limited tort insurance, you are restricted from suing after a car accident. If you purchased full tort insurance, you may sue. You may also make a third party claim against the insurer of the person who caused the accident. If you purchased no insurance at all, then you are also generally able to sue to recover your damages if the other party was at fault.

B. Because New Jersey is a no-fault state, it has different requirements  for insurance coverage.

• Mandatory Coverages:

1. Bodily Liability and property damage liability insurance pays others for damages that you cause if you are responsible for an accident. It does not cover medical expenses

2. Personal injury protection (PIP) pays medical expenses if you or other persons covered under your policy are injured in an automobile accident. Often called No Fault coverage, it pays your medical expenses if you were or were not at fault

3. Uninsured motorist coverage protects you if you are in an accident with someone who doesn’t have proper insurance coverage

• Optional Coverages:

1. Collision   Coverage for damage to your vehicle as the result of a collision with another car or other object. as options.

2. Comprehensive Coverage for damage to your vehicle that is not a result of a collision, such as theft of your car, vandalism, flooding, fire or a broken windshield. Comprehensive coverage also pays if you collide with an animal.

Related Topics:

• New Jersey Laws

• Process of Filing an New Jersey Car Accident Claim

• Damages you can Recover

• Disputing a Claim

• New Jersey Car Accident Facts