Understanding No Fault Car Insurance in New Jersey

New Jersey is one of a handful of states with no-fault car insurance laws. Despite its name, “no-fault” does not mean that fault is not assigned following a car accident. If you are new to a no-fault auto insurance state or you have not considered its implications, you may want to consider how this system defines your coverage.

No Fault Laws in NJ

Under no-fault laws in New Jersey, medical coverage for injuries resulting from car accidents is always provided by your own insurance company - regardless of who is at fault for the accident. Even if you are injured as a passenger in another person’s vehicle, your own insurance company will be responsible for your medical bills up to your limits.

Medical coverage on your automobile insurance policy is provided through personal injury protection (PIP). Sometimes called no-fault coverage, PIP covers the cost of your treatment and any medical equipment. PIP can also provide reimbursement for expenses related to an injury sustained in a car accident, including income continuation or essential services.

Health Care Primary For Your PIP Coverage

If you have health insurance (excluding New Jersey Family Care Plans (provided by Aetna Better Health, AmeriGroup Community Care, Horizon NJ Health, UnitedHealthcare Community Plan or WellCare) or Medicare and Medicaid), you may be eligible to select Health Care Primary for your PIP coverage. Because this option designates your health insurance carrier as your primary source of medical coverage for injuries resulting from a car accident, you can save up to 25% on your PIP premium for each insured vehicle on your policy.

When evaluating your coverage options in New Jersey, you’ll also have the option of selecting full tort or limited tort. Limited tort restricts your right to sue an at-fault driver for non-economic damages like pain and suffering unless the injury is permanent or involves disfigurement. Full tort places no restrictions on your right to sue.

It’s important to fully understand your options and rights when it comes to no-fault auto insurance. We’re happy to fully explain your choices and help you make selections that best meet your needs.  You can also read more information about when do you pay the deductible for car insurance and steps to take when another driver hits your parked car.

Call 855-993-4470, get your free quote online, or find an agent to learn more about no fault auto insurance in New Jersey. If you need additional information it can be found on our Contact Us page.