Most New Jersey drivers know they need car insurance, but far fewer truly understand what their policy covers when an accident actually happens. PIP, or Personal Injury Protection, is a piece of New Jersey’s no-fault insurance system that can make all the difference in whether your medical bills get paid after a crash, and understanding how it works before you need it is one of the most important things you can do.
If you have been injured in a car accident in New Jersey and feel overwhelmed by insurance terminology, Jae Lee Law can help you understand exactly what you’re entitled to.
What Does “No-Fault” Actually Mean?
New Jersey is a no-fault state, which means that after a car accident, each driver turns to their own insurance policy first to cover medical expenses, regardless of who caused the crash. This is a fundamentally different approach than at-fault states, where the party responsible for the accident is expected to pay for the other driver’s injuries through their liability coverage.
The practical result is that if you are injured in a collision in Bergen County, your own PIP coverage typically pays your initial medical bills, even if the other driver was clearly at fault.
What PIP Coverage Actually Pays For
PIP coverage has two distinct components that work together to protect injured drivers. Understanding both parts helps you recognize what you may be entitled to after an accident.
The first component covers medical expenses, including hospital treatment, physician visits, specialist care, and any medical equipment required to treat your injuries. The second component, sometimes called Additional PIP coverage, addresses other financial losses tied to your injury, including:
- Lost wages: Compensation for income you cannot earn while recovering from your injuries, up to the limits of your policy
- Essential services: Reimbursement for household services you are temporarily unable to perform yourself, such as childcare or cleaning
- Funeral costs: Coverage for funeral and burial expenses in the tragic event that an accident results in death
New Jersey requires all drivers to carry a minimum of $15,000 in PIP coverage, though many drivers in the state choose higher limits for additional protection.
The Limited Right to Sue and When You Can Pursue More
One of the most misunderstood aspects of New Jersey’s no-fault system is how it affects your ability to file a lawsuit. When you purchase auto insurance in New Jersey, you choose between a Limited Right to Sue and an Unlimited Right to Sue, and that choice has serious consequences if you are ever seriously injured.
Limited Right to Sue
With a limited right to sue, you generally cannot pursue compensation for pain and suffering unless you have sustained what the law defines as a “serious injury.” This includes permanent loss of a body part, significant disfigurement, or a fracture. If your injuries do not meet this threshold, your recovery may be limited to what your PIP policy provides.
Unlimited Right to Sue
Choosing an unlimited right to sue allows you to pursue compensation for pain and suffering for any injury, regardless of severity. This option typically costs more in premiums, but it preserves your ability to hold a negligent driver accountable for the full scope of harm they caused.
This distinction matters enormously in serious accident cases. If you are unsure which option you selected, or whether your injuries qualify for a lawsuit under the limited tort threshold, an experienced attorney can review your policy and medical records to help you understand your options.
Contact Jae Lee Law After a New Jersey Car Accident
If you have been injured in an accident and are dealing with PIP claims, coverage disputes, or questions about your right to sue, Jae Lee Law is ready to fight for you. Attorney Jae E. Lee brings over 30 years of personal injury experience and is one of only 3% of New Jersey attorneys certified by the Supreme Court. We serve clients in Fort Lee, Bergen County, and the surrounding communities, and we offer multilingual services in English, Korean, and Spanish. If your accident happened during winter weather, our page on property owner responsibilities for winter slip and fall accidents may also be relevant to your situation. Contact our office to schedule a consultation.
Frequently Asked Questions About PIP Coverage
Do I use my own insurance even if the other driver caused the accident?
Yes. Under New Jersey’s no-fault system, your own PIP coverage typically pays your initial medical bills regardless of who caused the crash.
What is the minimum PIP coverage required in New Jersey?
New Jersey requires all drivers to carry at least $15,000 in PIP coverage, though many drivers opt for higher limits for additional protection.
How do I know if I chose Limited or Unlimited Right to Sue?
This selection is documented in your auto insurance policy. An attorney can review your policy documents to confirm which option you selected and what it means for your specific case.
What counts as a “serious injury” under the limited right to sue?
New Jersey law defines this to include permanent loss of a body part, significant disfigurement, or a fracture, among other criteria that an attorney can help evaluate against your specific injuries.
Does PIP cover lost wages if I can’t work after an accident?
Yes, Additional PIP coverage can include compensation for lost income while you recover, up to the limits of your specific policy.