New Jersey is one of the few states that maintain no-fault car insurance laws. What this means is that if you get into an accident, your car insurance compensates you for your damages, regardless of if the other party was at fault.
The main type of insurance coverage no-fault states such as New Jersey requires is Personal Injury Protection. ValuePenguin explains what PIP covers and the minimum coverage requirements.
What does PIP cover?
Personal Injury Protection coverage covers three main aspects of a car accident: Medical costs, lost income and funeral expenses. Below is a brief overview of each category:
- Medical Costs: Under a PIP claim in New Jersey, you can recover costs for medical services, hospital stays, prescription medications, diagnostic services, rehabilitative costs, ambulatory services and other forms of treatment.
- Lost Wages: If your car accident injuries cause you to miss work for any amount of time, you may be able to recover compensation for lost wages and possibley benefits.
- Death Benefits: If you lose a loved one to a car accident or related injuries, PIP may pay you for his or her lost income and essential services. Moreover, it will cover up to $1,000 in funeral expenses.
What is the minimum coverage amount?
In New Jersey, you must purchase up to $15,000 in personal injury protection coverage. However, you have the option to purchase up to $250,000. If you opt for a lower amount, your insurer has a legal obligation to up your coverage to the maximum if you sustain a severe spinal or brain injury.
PIP is essential and required coverage in New Jersey. With it, you should not struggle to recover compensation following an accident.