October 18, 2025
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Reading Time: 6 min
If you were injured in a car accident in New Jersey, you may have heard the term “no-fault insurance.” Knowing how it works can help you get the medical care and compensation you need. Many drivers are surprised to learn that New Jersey’s no-fault system affects how and when they can pursue a personal injury claim.
If you were hurt in a New Jersey car crash, fill out our online form today to schedule a free consultation. Our team can explain your options and help you protect your rights throughout the claims process.
What No-Fault Insurance Means in New Jersey
New Jersey is a no-fault state. After a car accident, drivers usually file claims with their own insurance company for certain types of coverage, even if another driver caused the crash. The system is designed to get medical treatment and financial assistance to injured drivers as quickly as possible, without waiting for a determination of fault.
All drivers in New Jersey are required to have Personal Injury Protection (PIP) coverage with a minimum limit of $15,000 per person per accident. PIP covers:
- Medical bills, including hospital stays, doctor visits, and rehabilitation
- Lost wages if you cannot work due to your injuries
- Certain out-of-pocket expenses, such as transportation to medical appointments or childcare while recovering
Because PIP is paid by your own insurance, claims can often be processed faster than traditional liability claims. This immediate access to benefits can be crucial if your injuries prevent you from working or managing everyday responsibilities.
Why New Jersey Uses No-Fault Insurance
The no-fault system was created to reduce lengthy lawsuits and speed up payments for accident-related expenses. Instead of waiting for fault to be determined, drivers can use PIP coverage immediately to pay for medical treatment and other essential needs.
While the system can simplify the process for many claims, it also limits your ability to pursue lawsuits for pain and suffering unless your injuries meet certain criteria. This is why consulting an experienced New Jersey personal injury attorney can be so important when filing a claim. Attorneys can help determine whether your injury qualifies as “serious” under state law and advise on potential claims against the at-fault driver.
Filing a Lawsuit After a New Jersey Car Accident
Even in a no-fault state, you can still sue the other driver, but there are limitations. New Jersey offers two types of insurance policies:
Limited Right to Sue (Basic Policy)
This policy restricts lawsuits for non-economic damages like pain and suffering unless the injury is considered serious. Serious injuries under New Jersey law include:
- Loss of a body part
- Significant scarring or disfigurement
- Displaced fractures
- Permanent injury
- Loss of a fetus
- Death
If your injury meets these criteria, you may be able to pursue additional compensation beyond what your PIP coverage provides. This can include damages for long-term rehabilitation, ongoing medical care, and emotional distress.
Unlimited Right to Sue (Standard Policy)
The standard policy allows the insured to choose the unlimited right to sue option, which would enable the insured to pursue a lawsuit for pain and suffering without needing to breach the threshold. Although it has higher premiums, this policy provides more flexibility if you are seriously injured. Choosing this policy can be especially important for drivers who want full protection in case of accidents with significant or permanent injuries.
How PIP Coverage Works
PIP coverage pays for medical treatment up to the policy limit. The minimum is $15,000 per person, but higher limits are available, sometimes up to $250,000. Choosing higher PIP limits can help cover unexpected medical costs from serious accidents or prolonged treatment.
New Jersey uses a coordinated benefits system. If you have private health insurance, it usually covers your medical costs first, with PIP covering remaining expenses. If you do not have health insurance, PIP becomes your primary coverage. This layered system ensures that accident victims have multiple avenues for covering medical costs.
If Medical Bills Exceed PIP Limits
Medical bills can accumulate quickly, especially after major accidents requiring surgery, physical therapy, or long-term care. If your medical costs exceed your PIP coverage, options include:
- Using your health insurance if available
- Filing a personal injury claim against the at-fault driver
- Pursuing an underinsured motorist claim if the other driver’s coverage is insufficient
A personal injury attorney can review your policy, medical bills, and accident details to determine the best path to ensure you are fully compensated.
Property Damage After a Car Accident
No-fault insurance applies only to physical injuries. Damage to your vehicle must be addressed separately. Property damage claims are typically filed with the at-fault driver’s insurance company. If the driver is uninsured, your collision or uninsured motorist property coverage may cover repairs or replacement. Understanding these options can prevent delays in fixing your vehicle and getting back to daily life.
Why You Need a New Jersey Car Accident Attorney
Even with no-fault insurance, car accident claims can be complicated. Insurance companies may try to limit payouts or delay claims. A skilled New Jersey personal injury attorney can:
- Review your insurance policy and explain your coverage
- Ensure all paperwork and deadlines are handled correctly
- Negotiate with insurance companies on your behalf
- Determine if your injury qualifies as serious under New Jersey law
- Build a case if you are eligible to sue the at-fault driver
Working with an attorney allows you to focus on recovery while protecting your right to full compensation. Your attorney and their legal team can also help gather evidence, work with medical providers, and advocate for a fair settlement.
Steps to Take After a New Jersey Car Accident
Following these steps can help protect your rights and maximize your potential compensation:
- Call 911: Report the accident and get medical help. Police reports are essential for insurance claims and legal cases.
- Exchange Information: Get the other driver’s name, contact details, and insurance information.
- Take Photos: Document the accident scene, vehicle damage, and any visible injuries.
- Seek Medical Care: Some injuries may not appear immediately. Prompt medical attention and medical records are important if you choose to pursue a claim.
- Notify Your Insurance Company: Report the accident promptly, but avoid giving detailed statements to the adjuster without legal advice guidance.
- Contact an Attorney: A skilled personal injury attorney can help gather evidence, negotiate settlements, and represent you in court if needed.
Contact the New Jersey Car Accident Attorneys at Cellino Law
No-fault insurance laws can be complex, and recovering from a car accident is stressful. Our attorneys help you navigate insurance options, protect your rights, and pursue full compensation for your injuries.
If you were injured in a New Jersey car accident, fill out our online form or call 888-888-8888 for a free consultation. We will review your case, answer your questions, and guide you through the process with confidence.
Content checked by the personal injury attorney Ross Cellino. As a family man and a trial attorney, I pride myself on winning cases and serving the community. With over 35 years of experience, I understand the function of a jury, how juries arrive at conclusions, and the role that the jury plays in administering justice. I know how to win cases. You can find us in Manhattan, Buffalo, Melville, Rochester, Brooklyn, The Bronx, Queens and other locations throughout New York.