In New Jersey, No-fault insurance is optional. Since NJ is one of the few  no fault insurance states that allows you to modify your car insurance coverage, residents in New Jersey can choose between fault and no fault insurance at the time they apply for one or renew their auto insurance policies. These options are frequently referred to as full tort and limited tort, respectively, in New Jersey policy statutes. If the policyholder does not make a designation, the limited tort/no fault option will be provided by default.

Under no fault provisions, injured drivers are entitled to compensation for lost wages and medical expenses they sustain in an automobile accident, whether or not they are at fault in the situation. The injured party that has no fault insurance cannot recoup these expenses by suing the party at fault or being sued if he or she was at fault. Once the threshold for payment under the insurance coverage has been exceeded, litigation may be permitted in certain circumstances.

New Jersey Personal Injury Protection

Medical treatment coverage limits are $15,000 per person per accident, unless the situation involves a catastrophic injury, which is covered up to $250,000. Significant or permanent brain damage, disfigurement, spinal cord damage, and acute injuries that require immediate care within a hospital are considered catastrophic injuries. In situations where an individual has this basic coverage and the non-catastrophic medical expenses exceed $15,000, the person without private health insurance will have an insufficient amount of medical coverage.

A NJ injured insured may seek compensation for pain and suffering in cases of very serious injuries sustained due to the fault of another, dependent upon the verbal threshold provision within the insurance policy. These serious injuries include significant disfigurement, permanent disability, dismemberment, loss of a fetus, or death. Compensation in these situations should be sought through litigation within the state legal system.

Resident drivers seeking additional coverage under these provisions should consider a standard policy. Some alternatives under this type of policy allow the insured who was not at fault to sue for even minor injuries. These standard policies also provide options like funeral expenses, death benefits, and under-insured or uninsured coverage.