How Does Personal Injury Protection (PIP) Work in New Jersey?

In total, there are twelve states that require Personal injury protection (PIP). Eleven “no fault” insurance states including Delaware, Florida, Hawaii, Kansas, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Oregon, and Utah have some form of PIP law in place. The main function of the law is to insure that individuals involved in some form of auto accident receive the necessary medical and financial assistance they need. In addition to normal auto insurance for your vehicle, individuals in PIP states must also carry PIP insurance protection.

Understanding PIP Coverage

In no fault states, PIP coverage is in place to to protect policyholders from numerous different types of damages including:

Medical expenses. PIP will cover all of a policyholder’s necessary medical bills such as hospitalization, surgery, prescription medications, and rehabilitation.

Wage loss. This is covered after providing proof that the policyholder has lost income. Personal injury protection insurance will reimburse up to 80% off the lost income they had to miss because of the accident. If you are unable to work due to injuries sustained in the accident, PIP can provide compensation for lost income and even future wage losses.

Funeral expenses. In the unfortunate event of a fatal accident, PIP can help cover funeral and burial expenses, burial costs, and the medical bills and expenses incurred prior to the individual passing away.

Key PIP Requirements in New Jersey

One thing to note about PIP payments in general is that these payments are not affected by fault or negligence, so typically you can expect to receive these payments sooner compared to other types of insurance. The benefits of this include quicker access to medical care and reduced lengthy legal battles. Here are a few requirements for New Jersey specifically: 

Minimum Coverage. New Jersey requires all drivers to carry a minimum of $15,000 per person and $30,000 per accident in PIP coverage.

Health Insurance Coordination. If you have existing health insurance, your PIP coverage may coordinate with it. This means that your health insurance may cover medical expenses first, and PIP will cover any remaining costs, such as copayments or deductibles.

Limited Tort vs. Full Tort. When purchasing auto insurance in New Jersey, you must choose between limited tort and full tort options. Limited tort can result in lower premiums but limits your ability to sue for pain and suffering, except in cases of serious injury. Full tort allows for more extensive legal action in case of an accident.

How Can a New Jersey Personal Injury Attorney Help?

In cases where a PIP policy holder doesn’t receive equitable compensation for the damages they incurred, a Cherry Hill personal injury lawyer at Cuneo & Leonetti could help fight with insurance providers so you don’t have to. While it offers significant benefits, understanding the nuances of PIP coverage and potential limitations is crucial and getting quality financial support should be a priority. Insurance companies have been known to deny valid claims in the past in an effort to save money and maximize profit at the expense of your injury claim.