New Jersey operates under a “no-fault” auto insurance system. This policy helps injured motorists file their personal injury claims through their own Personal Injury Protection (PIP) insurance, regardless of who caused the crash.
PIP policy types in New Jersey
The state offers two PIP policy types: basic and standard. The basic policy covers up to $15,000 of the policyholder’s all necessary medical expenses, including hospital stays, surgery costs, diagnostic tests and medicines.
The standard policy covers a minimum of $15,000 up to $250,000 for certain injuries. It also covers wage loss and essential household services. If the policyholder suffers a fatal accident, their PIP can provide a maximum of $10,000 death benefits for their dependents and up to $1,000 for funeral and burial costs.
PIP policy benefits extend beyond the owner to include their household members and passengers. If a car struck them as a pedestrian, they could also file a claim for their medical bills.
PIP benefit claim exclusions
Under N.J.S.A. 39:6A-7, insurers have the authority to deny PIP benefits in certain conduct or situations:
- The driver was fleeing from the police or committing a crime
- The driver intentionally caused their car to crash as a form of “self-harm”
- The driver was using another person’s car without permission
- The driver’s car had no PIP coverage at the time of their accident
If one of the passengers is a non-household member who has PIP insurance of their own, they must file their claim under that policy.
By understanding how PIP works in New Jersey, crash victims can seek medical care for their injuries without feeling burdened by their finances. This practice not only helps protect their rights but also ensures they can focus on their recovery.