New Jersey has a no-fault insurance system. This system requires you to seek recovery through insurance first before suing over a car crash. On top of that, your right to sue over a car wreck may be restricted even after you’ve gotten everything you can out of insurance, depending on whether you have a limited tort policy or not.
This is something that’s best explained by a skilled car accident attorney in person during an initial consultation. In the meantime, here’s a basic overview of how New Jersey car insurance laws work and what a Mt Laurel limited tort lawyer might be able to do to help you navigate around those laws.
Limited Versus Unlimited Right to Sue
Under New Jersey law, every vehicle owner must buy a specific minimum amount of liability insurance coverage to cover injuries suffered by other people involved in a crash, as well as personal injury protection (PIP) that’s meant to cover your own medical bills and car repair costs after a wreck. This PIP coverage is available on a no-fault basis, which means you don’t need to prove that anyone else was at fault for your wreck—or that you yourself weren’t at fault—to get compensation.
From here, you have a choice about whether you want to buy a Basic insurance policy with a Limited Right to Sue, a Basic policy with an Unlimited Right to Sue, or a Standard policy. As a Mt Laurel limited tort attorney can explain, the first option is the cheapest of the three, but it also prohibits you from suing for non-economic losses you suffer in a wreck, even if someone else was 100% at fault for that wreck.
Exceptions to the Limited Tort Rules
There are some specific situations where people with limited tort coverage are allowed to sue for non-economic damages. Under the 1998 Automobile Insurance Cost Reduction Act (AICRA), you can step outside the limited tort system if you suffer any of the following six injuries from an auto accident:
- A displaced bone fracture
- Significant and permanent scarring
- Loss of a limb
- Loss of a fetus
- Any injury which your treating doctors are reasonably safe will be permanent
- A fatal injury, in which case your family members can sue in your name
If you get hurt in a wreck caused by someone who isn’t required by law to have PIP coverage, the normal limited tort rules don’t apply. Your lawyer can go into more detail about limited tort exceptions during a private meeting in the wake of a car crash in Mt Laurel.
Learn More from a Mt Laurel Limited Tort Attorney
Dealing with auto insurance is always complicated and usually frustrating because of that. Getting paid fairly after a wreck can be especially hard because you might not have a legal right to recover for all your crash-related losses.
Help from a Mt Laurel limited tort lawyer will be vital to making sure you get paid fairly to the fullest extent possible after your unique crash. Call Ostroff Godshall Injury and Accident Lawyers today to learn more.
