Car accident in New Jersey: what to do and when to call a lawyer

How no-fault (PIP) works in New Jersey

After a crash, most people expect the at-fault driver's insurance to cover their doctor visits. In New Jersey it usually works the other way. Your own Personal Injury Protection, or PIP, is the first place your medical bills go, whoever caused the accident.

On a standard policy, PIP limits range from as low as $15,000 up to $250,000 or more, depending on what you picked when you bought the policy. According to the state Department of Banking and Insurance, even lower-limit policies include up to $250,000 for certain serious injuries, such as permanent or significant brain or spinal cord injuries. A deductible (often $250) and a 20% co-payment on medical bills between the deductible and $5,000 usually apply.

Some drivers chose to make their health insurance primary instead of PIP to lower their premium. If you did, your health plan pays first, and its rules (networks, pre-approvals) matter. Medicare and Medicaid can't be used this way.

PIP isn't only about doctor bills. Depending on your policy, it can also include income continuation if you can't work, essential services (help with tasks you can't do while injured) and death and funeral benefits. Your policy's declarations page lists what you bought, and it's worth pulling it out early so you know where you stand.

One practical tip: PIP claims involve forms, deadlines and sometimes pre-approval for certain treatment under your insurer's care plan. Staying on top of the paperwork helps keep your treatment paid for.

Limitation on lawsuit vs. no limitation

PIP covers medical bills, but it doesn't pay for pain and suffering. For that, you'd bring a claim against the at-fault driver. How easy that is depends on a choice printed on your own policy's coverage selection form.

If you have the "limitation on lawsuit" option (often called the verbal threshold), you can only recover pain and suffering damages if your injury falls into one of the categories in N.J.S.A. 39:6A-8(a). If you have "no limitation on lawsuit," you keep the right to sue for pain and suffering for any injury caused by someone else's carelessness. The limited option is cheaper, and it's also the default: if you never made a choice, the law puts you in it.

• Death
• Dismemberment
• Significant disfigurement or significant scarring
• Displaced fractures
• Loss of a fetus
• A permanent injury, meaning a body part or organ hasn't healed to function normally and won't with further treatment

What the verbal threshold means in practice

Under the limited option, your lawyer must give the defense a certification from a licensed treating physician (or a board-certified doctor the treating physician referred you to) stating, under penalty of perjury, that your injury meets one of those categories. It has to be based on objective clinical evidence, not only on how you describe your pain. The deadline is generally 60 days after the defendant answers the lawsuit.

The threshold only limits non-economic damages like pain and suffering. You can generally still pursue economic losses that PIP doesn't cover, such as medical costs above your PIP limit.

This is why medical documentation matters so much in New Jersey car cases. Consistent treatment records, imaging like MRIs or X-rays, and a doctor's clear explanation of how the crash caused the injury often decide whether a claim crosses the threshold. Gaps in treatment are something insurers notice and question.

Minimum insurance and why it matters to your claim

New Jersey raised its minimum liability limits in two steps. For standard policies issued or renewed on or after January 1, 2026, the minimums are $35,000 per person and $70,000 per accident for bodily injury, plus $25,000 for property damage. (The 2023 step set them at $25,000 and $50,000.) These increases don't apply to the low-cost Basic policy, which has much smaller optional limits.

Why care? Because a driver with only minimum coverage may not have enough insurance to pay for a serious injury. That's where your own underinsured motorist (UIM) coverage can come in. Basic policies don't include uninsured or underinsured motorist coverage at all, so it's worth checking which kind of policy you have.

Reporting the crash

Under N.J.S.A. 39:4-130, a driver involved in a crash that causes injury, death, or damage to any one person's property over $500 must notify the local police (or the county or State Police) by the quickest means available. The statute also calls for a written report to the state within 10 days.

Beyond the legal duty, a police report is often the first piece of evidence insurers look at. It records who was there, the conditions, and sometimes witness names.

Fault, shared blame and the two-year clock

New Jersey uses modified comparative negligence (N.J.S.A. 2A:15-5.1). You can recover damages as long as your share of fault isn't greater than the other side's, but your award is reduced by your percentage. If you're found 20% at fault, a $50,000 award becomes $40,000. If you're found more than 50% at fault, you recover nothing from that defendant.

Most car accident lawsuits must be filed within two years of the crash under N.J.S.A. 2A:14-2. There are exceptions (for example, claims involving minors or a government vehicle, which has its own short notice rule), so it's smart to check early rather than late.

Shared fault is common in rear-end chains, left-turn crashes and intersection collisions where each driver tells a different story. Photos, dashcam video, nearby business cameras and witness statements can be the difference between a reduced award and no recovery at all.

What a car accident claim can include

Your claim against an at-fault driver can include losses that PIP doesn't fully cover. Depending on the facts and your lawsuit option, that may include medical costs above your PIP limit, lost wages beyond PIP's income benefits, future medical care, and pain and suffering.

Property damage is handled separately. Damage to your car usually goes through the at-fault driver's property damage liability coverage or your own collision coverage, if you have it. Your insurer may then seek repayment from the other driver's insurer.

If the at-fault driver has no insurance or flees, your own uninsured motorist coverage on a standard policy may step in. That claim usually has its own notice requirements under your policy, so it's worth reporting a hit-and-run to police and your insurer promptly.