A policy in the Garden State must have certain coverages with at least the following limits:
- $15,000 of bodily injury liability per person, $30,000 per incident
- $5,000 of property damage liability coverage per incident
- $15,000 of personal injury protection (PIP) per person
- $15,000/$30,000 of uninsured/underinsured motorist bodily injury coverage per person, per incident
- $5,000 of uninsured/underinsured motorist property damage coverage per incident
New Jersey no-fault insurance
New Jersey is a no-fault state, which means that your post-accident medical expenses could be be covered by your own insurer regardless of who caused the crash.
New Jersey PIP
Personal injury protection helps cover your injury bills after an accident, regardless of fault. All versions of New Jersey PIP include medical coverage, either as your primary or secondary coverage (depending on whether your health insurance plan helps pay for injuries related to a car accident).
- If you choose full PIP primary, your PIP acts as the primary coverage for accident-related injuries to you and your passengers. Full PIP primary includes income continuation (in case you can't work after an accident), funeral expenses, death benefits, and essential services expenses. The last part can help pay for household tasks if you can't complete them due to an accident-related injury.
- Full PIP health primary is just like the above, only your health insurance acts as the primary coverage for accident-related injuries. In this case, your PIP would kick in after your health insurance limits have been maxed out.
- Medical only PIP primary doesn't include income continuation, funeral expenses, death benefits, or essential services expenses, but can still help with hospital bills after an accident
- Medical only health primary is like the above, only your health insurance plan will act as the primary provider to help cover accident-related medical expenses.
Right to sue
With a standard New Jersey no fault policy, you'll make a choice that defines your right to sue for damages if you (or your spouse or family member who lives with you) are injured in a car accident that you didn't cause.
- Limited right to sue means you can sue only if the injury is extreme and matches certain criteria (including death, disfigurement, or loss of a body part).
- Unlimited right to sue is just that: unlimited. So you can sue the at-fault driver after any injury, no matter the severity. Choosing the unlimited right to sue makes your policy a bit more expensive.
It's worth noting that these options don't affect medical expenses, which, again, are typically covered through your New Jersey PIP. The right to sue is for non-monetary damage (i.e. pain and suffering).