What Every NJ Driver Needs to Know About Car Accident Laws in New Jersey

Car accidents are stressful, confusing, and often life-changing, and most drivers, after being involved in a crash, are not sure what to do or what their legal rights are. That’s why every NJ driver needs to have a basic understanding of New Jersey’s auto insurance laws and how they affect you if you are involved in an automobile collision.  So, here’s what you need to know in a nutshell.

1. New Jersey Is a No-Fault State

New Jersey has a “no-fault” insurance system, called Personal Injury Protection (PIP), which means your own household’s auto insurance policies pay for your medical bills up to the amount of your PIP coverage, no matter who caused the car accident.  Even if you do not own a car, your PIP benefits will be paid by the nearest blood relative of your living within your household and that should not affect their insurance costs.

2. Report on the Accident

If you did not cause the collision, it is always best to call the police to the accident scene.  In New Jersey, any accident that causes injury, death, or property damage over $500 must be reported to the police within 10 days after the collision. If you don’t report an accident, it can lead to penalties or even a suspended license.

3. What If You’re Partially at Fault?

New Jersey uses a comparative negligence rule. This means that if you’re found to be partially at fault for the accident, your compensation can be reduced by your percentage of fault. For example, if you were 20% at fault and your damages totaled $100,000, you could still recover $80,000. If you are found to be more than 50% at fault, you will not be able to be paid for your injuries or financial losses.

4. Strict Statute of Limitations

In New Jersey, you have a limited time to file a car accident lawsuit, which is called the statute of limitations. If you miss this deadline, you may lose your right to seek compensation or legal action altogether.

• 2 years from the date of the accident to file a personal injury claim
• 6 years to file for property damage
• 90 notice to public entities
• Up to age 20 for an injury to a minor

5. You Can Choose Limited or Unlimited Right to Sue

When buying car insurance in New Jersey, you’ll be asked to choose between a limited right to use or an unlimited right to sue. This choice can greatly affect your legal options after a crash, so review your insurance contract carefully before choosing to make sure you fully understand the policy.

The basic principles are:

• Limited Right to Sue:  Also called Limited Tort and Verbal Threshold
• Lower premiums, but fewer options to sue for pain and suffering, unless the injuries are permanent injuries to a body part.
• Unlimited Right to Sue: Higher premiums, but you can sue for pain and suffering regardless of injury severity.  Also known as No Threshold or Zero Threshold.
• Commercial Vehicle Exception:  If injured by a commercial vehicle such as a truck, bus, or tractor-trailer, you automatically have no threshold and you sue for both temporary and permanent injuries.

6. What Damages Can You Recover in a Lawsuit?

If your injuries meet the legal threshold to sue, you may be entitled to recover damages for:

• Medical bills (past and future)
• Lost wages and reduced earning capacity
• Pain and suffering
• Emotional distress
• Property damage
• Any out-of-pocket expenses
• Losses to your spouse

An experienced personal injury attorney can help estimate the full value of your claim, fight for your right to compensation including pain and suffering, and help guide and support you through the complex legal process.

Hire an Experienced New Jersey Personal Injury Lawyer

Navigating New Jersey car accident laws and insurance claims on your own is tough. That’s why having an experienced personal injury attorney in your corner makes all the difference with your case.

At Davis, Saperstein & Salomon, P.C., we’ve been standing up for accident victims across New Jersey for over 40 years. We’ve secured over $1 billion in verdicts and settlements and helped over 35,000 clients and their families. Our award-winning legal team knows how to fight for your rights to get the compensation you deserve.

Get a Free Book about New Jersey Personal Injury Claims:

Davis, Saperstein & Salomon P.C. Partners Garry R. Salomon and Jeffrey E. Salomon co-authored the second edition of The Consumer’s Guide to New Jersey Personal Injury Claims (2nd edition 2024) available at amazon.com or by calling 1-800-529-2000.

Injured in a Car Accident? We’re Here for You.

If you or someone you love has been injured in a car accident, don’t wait! Whether you have been injured in a car accident, slip and fall, a fire, or require representation for a claim, the personal injury attorneys at Davis, Saperstein & Salomon, P.C. offer compassionate, skilled legal representation to ensure you receive the compensation you deserve.

Clients seeking experienced personal injury lawyers in Teaneck, NJ, or the surrounding Bergen County area can contact Davis, Saperstein & Salomon, P.C. at 1-800-LAW-2000 or via email lawinfo@dsslaw.com. Our firm offers free, no-obligation consultations and second opinions, and has offices throughout New Jersey and New York City.