New Jersey has a no-fault insurance law. This means that it generally requires your car insurance – specifically its Personal Injury Protection (PIP) – to cover your medical bills after an accident, regardless of who caused it.
However, this law defines “automobile” in a way that excludes motorcycles. If you were injured in a motorcycle accident, your PIP will not cover your medical bills. Instead, your three most likely sources of coverage are your personal health insurance, any MedPay coverage in your motorcycle policy, or the at-fault driver’s liability insurance.
Medical payments (MedPay)
If your motorcycle policy includes MedPay, it can cover your medical bills before your health insurance does. Like PIP, it covers immediate costs such as emergency care and hospital bills regardless of who caused the accident. However, not all policies have this. Make sure to check your policy’s declarations page to confirm and to determine what your limit is.
Private health insurance
If MedPay runs out, your personal health plan may cover the remaining costs. However, a common concern people have is whether their health insurer can take that money back if they later win a settlement. In New Jersey, most state-regulated health insurers cannot. The law prohibits them from seeking repayment out of your personal injury settlement.
Take note that government programs such as Medicare and Medicaid, or certain employer-funded “self-insured” plans, are exempt from this rule. An attorney can help you determine if your specific plan has a right to seek repayment from your settlement.
The at-fault driver’s liability insurance
If another driver caused the crash, you can file a claim against their insurance provider for medical bills, lost wages and other costs your coverage does not reach. As a motorcycle rider, you may also have broader rights to sue for pain and suffering.
Under state law, drivers only sue for pain and suffering if their injuries meet specific legal categories, such as a permanent injury or a displaced fracture. Motorcycle riders, however, generally do not face that same restriction because motorcycles fall outside the no-fault insurance law.
Know where you stand before you settle
Figuring out who pays your medical bills after a motorcycle crash can be difficult, especially when the situation involves multiple insurance policies. Before you accept any payment or sign any documents, it is wise to consult with an attorney first. They can help you understand what you are actually entitled to.