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What Does No-Fault State Mean?

Many of our car accident clients ask, “What does no-fault state mean?” This is quickly followed by another question: “Is New Jersey a no-fault state?” Simply put, the term no-fault state refers to the way car insurance claims are handled after an accident. And yes, New Jersey is a no-fault state when it comes to car accidents and insurance claims.

In a no-fault state, instead of determining who was at fault to cover the damages, each party’s insurance company pays for their own medical expenses. Understanding this system is crucial, as it shapes the options available to those involved in car accidents.

If you’ve been injured in a car accident in New Jersey, a no-fault state, consulting with a New Jersey car accident lawyer is in your best interest. They can navigate the complexities of these laws.

At Maggiano, DiGirolamo & Lizzi, we are proud to seek justice for our neighbors. The inspiration we draw from our clients helps us courageously pursue the compensation they deserve. Call us today at (201) 585-9111 to schedule a FREE consultation. We will determine if you have a compensable claim and ensure you pursue every avenue toward justice.

Is New Jersey a No-Fault State?

Yes, New Jersey is a no-fault state. The no-fault system is designed to streamline the process of financial recovery after a car accident. Under this system, as outlined in the New Jersey Statutes § 39:6A-4, individuals involved in car accidents file claims with their own insurance carriers, regardless of who was at fault. This coverage, known as personal injury protection (PIP), helps cover medical expenses and, in some cases, lost wages and other damages up to the policy’s limit.

Understanding New Jersey No-Fault Laws

New Jersey’s no-fault law means that after most car accidents, your own insurance policy’s PIP coverage is the primary source of compensation for medical expenses. Your PIP insurance claim can be accessed before fault has even been established in your car accident.

One significant aspect of New Jersey’s system is the choice between a “Basic” and “Standard” insurance policy. The Standard Policy offers more coverage and the option to retain the right to sue for pain and suffering and other non-economic damages. The Basic Policy is more restrictive regarding coverage and your right to sue, but it is cheaper.

Navigating your rights to compensation in relation to these options can be complicated. The guidance of a knowledgeable New Jersey car accident attorney is invaluable should you suffer injuries in a crash.

Read More: What Does No-Fault Car Insurance Cover in New Jersey?

Why Is New Jersey a No-Fault State?

New Jersey’s adoption of no-fault laws aims to simplify the process of dealing with car accidents. This system is designed to expedite compensation for injuries before establishing fault, reduce the burden on the courts, and streamline insurance claims.

By requiring each driver’s insurance to cover their own medical expenses, the no-fault approach helps ensure timely medical treatment and financial support, regardless of who caused the accident. It attempts to create an efficient, fair resolution of auto accident claims by providing a level of immediate protection to all involved parties.

Though no-fault laws may keep frivolous lawsuits from crowding court dockets, they can also make it difficult for legitimate claimants to see justice. Consulting an experienced New Jersey car accident lawyer is in your best interest should you believe your losses exceed the limits of your PIP insurance.

Can I Sue After a Car Accident in New Jersey?

Despite being a no-fault state, New Jersey allows you to sue for injuries in certain circumstances. If you’ve chosen the Standard Policy, you can choose the “unlimited right to sue” the at-fault driver for pain and suffering for any injury.

If you chose the “limited right to sue” option, you may still be able to sue if you sustained a permanent injury. This can include significant disfigurement, displaced fractures, loss of a body part, or other severe injuries.

The Basic Policy also includes the “limited right to sue.” Therefore, even with basic coverage, you may be able to sue for damages resulting from permanent injuries.

How Long Do You Have To Sue Someone for a Car Accident in New Jersey?

The statute of limitations for filing a lawsuit after a car accident in New Jersey is 2 years from the date of the accident (NJSA § 2A:14-2). This time frame is crucial as failing to file within this period can bar you from seeking compensation for your injuries.

Given the complexities surrounding these cases, especially in determining if your injuries qualify for stepping outside the no-fault system, consulting with a New Jersey car accident attorney becomes essential to protect your rights and undertake the legal process effectively.

Contact a New Jersey Car Accident Lawyer Today!

If you’ve been in a car accident, understanding the New Jersey no-fault state laws is essential. But don’t navigate the no-fault system alone. The experienced attorneys at Maggiano, DiGirolamo & Lizzi are ready to guide you through your legal options and fight for the compensation you deserve.

With our dedication to justice and client-focused approach, we’ll ensure your case is handled with the utmost care. Contact us today for a FREE consultation, and allow us to advocate for you!