(201)488-1161
If you’ve been injured in a car accident in New Jersey, you may assume you can simply sue the driver who caused the crash. But New Jersey’s no-fault insurance system adds an important layer of complexity to that path — and understanding how it works can make a significant difference in whether you may receive the full compensation you deserve.
At O’Cathain Law Group Personal Injury Law Department, certified civil trial attorney Donny O’Cathain has helped injured drivers in Bergen County and throughout New Jersey recover tens of millions of dollars from the corporations and careless people responsible for their injuries. Here’s what you need to know about the no-fault system and how it may affect your claim.
New Jersey operates under a “no-fault” auto insurance system. In a no-fault state, when you are injured in a car accident, you first turn to your own insurance company to pay for your medical treatment — regardless of who caused the crash. That coverage is called Personal Injury Protection, or PIP.
PIP coverage is required under New Jersey law. It pays for your medical bills, a portion of your lost wages, and certain other out-of-pocket expenses stemming from the accident — up to the limits of your policy. The standard PIP coverage in New Jersey is $250,000 per person, per accident, but drivers often end up electing a lower amount.
The idea behind no-fault is to get injured people the medical care they need quickly without waiting for the courts to determine who caused the crash. In practice, though, it also means that your ability to sue the responsible driver for pain and suffering will need to clear an extra obstacle.
When you purchase auto insurance in New Jersey, you must choose between two options — and the choice you make matters can have an impact on the outcome of your case.
Limitation on Lawsuit (the “verbal threshold”): This is the less expensive option. By choosing it, you agree to limit your right to sue the responsible driver for non-economic damages — things like pain and suffering — unless your injuries meet a defined threshold of seriousness. Under New Jersey law, injuries that qualify include truly catastrophic injuries, such as loss of a body part, significant scarring or disfigurement, a displaced fracture, loss of a fetus, permanent injury within a reasonable degree of medical probability, or death.
However, at O’Cathain Law Group we have the experience of handling cases when our clients choose the “Limitation on Lawsuit” option. We understand that soft tissue injuries caused by a car crash can lead to permanent pain. We litigate these cases and we try them in front of a jury when the defense doesn’t make a fair offer.
Many New Jersey drivers choose the Limitation on Lawsuit option at the time of purchase without fully understanding what they are giving up. If that is the option on your policy, it is critical to have a skilled trial attorney explain how to make sure your lawsuit brings your fair compensation.
No Limitation on Lawsuit (the “zero threshold” or “tort option”): This option preserves your full right to sue the responsible driver for pain and suffering regardless of the severity of your injury. It typically costs more in premiums, but it gives you far greater legal options if you are injured in a crash.
PIP coverage is not unlimited. Once your medical bills and lost wages exceed your PIP limits, your health insurance may cover some additional costs, or your doctors might agree to get reimbursed from your lawsuit.
Your medical expenses above and beyond your PIP coverage and any future medical costs can be part of your claim for damages.
Donny O’Cathain and his team at OLG Personal Injury Law Department has recovered substantial compensation for exactly these situations. In one recent example, he secured a $300,000 settlement for a client injured in a rear-end crash who required surgery when the client accepted the “Limitation on Lawsuit” option.
These results reflect what is possible when an experienced trial attorney — one who is known for taking cases all the way to verdict when necessary — is in your corner from the start. You can view results on our firm’s Verdicts & Settlements page.
The no-fault system can work against injured people in ways that aren’t always obvious. Your own insurance company has a financial interest in minimizing what it pays out on your PIP claim. Insurers sometimes push back on treatment that your doctors have recommended, arguing that it is not “medically necessary.” They may also request what they call an Independent Medical Examination — which is, in practice, a defense medical examination — to argue that your injuries are less serious than your treating physicians say. (If you’d like a deeper explanation of how these defense medical exams work, check out our earlier blog post.)
When you pursue a claim against the responsible driver, that driver’s insurer will fight just as hard to pay you as little as possible. They may argue that your injuries do not meet the verbal threshold or that a pre-existing condition is responsible for your symptoms. Donny has spent his career fighting these tactics in state and federal court throughout New Jersey — and he is no stranger to taking on insurers who refuse to make a fair offer. One important thing to remember is to never accept payment or sign any insurance documents until you’ve consulted with a certified civil trial lawyer.
New Jersey’s statute of limitations gives most car accident injury victims two years from the date of the accident to file a lawsuit. Missing that deadline can permanently bar your claim — no matter how serious your injuries are. Acting quickly also means that critical evidence — surveillance footage, witness accounts, physical evidence from the scene — is preserved before it disappears.
If you or a family member has been hurt in a car accident in Bergen County or anywhere in New Jersey, you deserve a lawyer who will fight for full and fair compensation, and who knows New Jersey. O’Cathain Law Group Personal Injury Law Department offers free and confidential consultations. Call us today or contact us online to schedule your consultation. It’s more than our firm’s motto; it’s why we do what we do— we want to help you Move Forward.