The Largest Benefit of No-Fault Insurance
New Jersey is one of 12 states that have no-fault insurance. This means all parties involved in a motor vehicle accident must file claims and seek compensation from their own car insurance carrier, regardless of who is at fault. You do not need to prove fault or establish negligence to seek no-fault insurance benefits. However, to make things a bit complicated, the state uses a unique “choice” no-fault law. This makes it imperative that you consult with an experienced New Jersey car accident attorney if you were involved in an accident.
New Jersey’s Insurance Requirements
New Jersey law requires every vehicle owner to have the minimum required amount of car insurance before registering their vehicle and driving on public roads. The state currently has three different types of no-fault car insurance:
- Personal injury protection (PIP) insurance – pays for medical expenses regardless of fault at the time of the collision.
- Liability insurance – pays for damages suffered by others in the accident you caused; New Jersey only requires property liability coverage ($5,000), but you can also get bodily injury liability although not required.
- Uninsured motorist insurance – provides financial coverage if you are involved in an accident with a motorist who does not have coverage.
Benefits of New Jersey’s No-Fault System
One of the major benefits of New Jersey no-fault system is that it allows for a more efficient and quick injury claims process. You can seek payment for your medical bills from your own insurance, reducing the need for long legal battles. Although your insurance company can dispute responsibility, the disputes are handled through an arbitration forum instead of a litigation process.
Another benefit of the no-fault system is that is generally associated with lower insurance premiums for motorists. The reason for the lower premiums is that insurance carriers do not have to factor in the potential costs of expensive lawsuits into the calculation of their premiums. However, what some do not understand is that the savings on premiums often come at the expense of limiting an injured party’s ability to recover damages through litigation. This limitation makes it imperative that you hire an experienced New Jersey personal injury attorney to maximize what you are entitled to from your insurance carrier.
Call a New Jersey Car Accident Attorney
If you or someone you know has suffered any type of injury in a car accident caused by the reckless or negligent actions of another driver, an experienced New Jersey car accident injury attorney can help. Call Beninato & Matrafajlo Attorneys at Law, LLC at 908-248-4404 to schedule a free, complimentary consultation with our legal team today.
