New Jersey Car Insurance Minimums

New Jersey is a no-fault insurance state. This system doesn’t require car accident injury victims to prove the other driver at fault for the accident to recover compensation from their insurance. Instead, drivers file car insurance claims against their own insurance policies regardless of who caused the accident, except under specific circumstances. For this reason, New Jersey requires all drivers to carry at least the state’s minimum basic requirement for insurance coverage and proof of their coverage while they drive.

Before you drive in New Jersey, it’s essential to know the state’s minimum required insurance coverage, additional coverage options, when you can file a lawsuit with a New Jersey car accident attorney, and what to do after a car accident to protect yourself.

What Does New Jersey Require for Car Insurance?

Drivers in New Jersey must have a current policy with at least the minimum insurance coverage to drive legally on New Jersey roadways. This coverage includes the following:

• $5,000 in liability coverage for property damage
• $15,000 per person for injury liability coverage
• $30,000 total injury liability coverage per accident

This minimum coverage safeguards a driver’s personal assets if they are responsible for a car accident. If an injured motorist files a lawsuit against a New Jersey driver after an accident, this coverage provides funds for their legal defense against the lawsuit.

Sadly, New Jersey’s minimum required insurance coverage does not go very far in today’s world of expensive medical care costs and high prices for new vehicles. It’s important for a New Jersey driver to know all of the options available to protect themselves.

What Additional Insurance Coverage Is Available In New Jersey?

Because New Jersey’s car insurance requirements are minimal, many drivers choose to add optional coverage such as the following:

• Uninsured motorist coverage: provides compensation after an accident with an uninsured or underinsured motorist if the damages exceed the limits of an injury victim’s coverage
• Collision coverage: provides additional coverage for damages resulting from a collision between two vehicles
• Comprehensive coverage: covers non-accident damage to a vehicle such as from vandalism, falling limbs, or hail damage
• Gap coverage (loan/lease pay-off): this covers the difference between the vehicle’s current cash value and the amount remaining on the vehicle loan or lease payment after an accident
• Unlimited right to sue coverage: this allows the policyholder to file a lawsuit against an at-fault driver without having to meet the threshold of permanent or catastrophic injury
• Rental car reimbursement: covers the cost of car rental if a vehicle isn’t drivable after an accident
• Income continuation: provides income after an accident that leaves the policyholder unable to work
• Extended medical benefits: provides additional coverage for medical expenses
• Roadside assistance: covers the costs of towing, changing a flat tire, or other roadside emergency expenses
• Funeral coverage: provides funds to cover funeral costs if a driver or passenger dies in a car accident

The above options are available to all New Jersey drivers for additional monthly premiums.

What If My Accident Expenses Are Greater Than My Coverage?

After a serious car accident in New Jersey, it’s not uncommon for the cost of medical care to exceed the limits of the policyholder’s insurance—especially for those who carry only New Jersey’s minimum insurance requirement. In these cases, a New Jersey accident attorney pursues other avenues to recover damages such as filing claims against the injury victim’s optional coverage like uninsured motorist or collision coverage. New Jersey also allows car accident victims to file a liability claim against an at-fault party’s insurance if their medical costs exhaust the limits of the coverage after severe or catastrophic injuries when someone else caused the accident.

Finally, New Jersey’s no-fault insurance law allows a car accident victim to file a lawsuit against the driver who caused the accident if their case meets certain criteria for permanent, life-altering injury such as those resulting in any of the following:

• Loss of limb or organ
• Displaced bone fractures
• Disfigurement or severe scarring
• Disability or impairment
• Loss of a fetus

If a New Jersey car accident injury victim chooses to add the “Unlimited Right to Sue” optional insurance coverage, they may file a lawsuit against an at-fault party even if their injury does not meet the above threshold for severe injury. 

Under the New Jersey statute of limitations for car accident lawsuits, an injury victim must file the lawsuit within two years of the car accident date.

What to Do After a Car Accident In New Jersey?

New Jersey requires car accident victims to report all car accidents with $500 or more in property damage or any accident with injuries or fatalities to their insurance company as soon as possible or within the time limit specified by their policy. There are also steps an accident victim can take at the scene of the accident to protect themselves if they are physically able to use their cell phone. The following steps help protect the car accident victim’s right to compensation in an insurance claim or lawsuit:

• Call 911 to report the accident as required by New Jersey Law
• Use the phone’s camera to take photos of the accident scene, the damaged vehicles, anything that contributed to the cause of the accident, and any visible injuries
• Collect the contact information and insurance information of the other driver
• Add the contact information of any eyewitnesses to the accident
• Go directly to the hospital from the accident scene and ask for a complete medical evaluation as well as treatment for your emergency injuries

It’s always best to hire a car accident attorney soon after an accident, before accepting an early settlement offer by an insurance company or filing a claim.

How Can a Car Accident Lawyer In New Jersey Help?

Although New Jersey’s no-fault insurance law is intended to simplify the recovery process, it’s also limiting to those who suffer serious injuries after an accident and don’t know all of the options available to them beyond the minimum New Jersey insurance requirements. Fortunately, an experienced car accident attorney explores all legal avenues to recover an injury victim’s damages like medical expenses, lost wages, and compensation for pain and suffering. Call the experienced New Jersey personal injury lawyers at Grungo Law today so we can begin strategizing the best way forward toward financial recovery so you can focus on your physical recovery.