You pay for full coverage every month, so a crash should not leave you exposed. Yet many New Jersey drivers learn too late that their policy limits their legal rights. Your ability to sue may depend on a choice you made when you bought your insurance.
What full coverage usually includes
Full coverage typically combines liability, collision and comprehensive insurance. It can repair your car and pay for damage you cause to others. It does not automatically protect your right to sue an at-fault driver for pain and suffering.
The limitation on lawsuit option
New Jersey law requires you to choose a tort option when you buy auto insurance. Under N.J.S.A. 39:6A-8, the limitation on lawsuit option is the default if you do not choose. It lowers your premium, but it waives your right to sue for pain and suffering in most cases. You can only bypass this limit if your injury falls into one of six categories:
- Death: Injuries that prove fatal.
- Dismemberment: Loss of a body part.
- Loss of a fetus: Pregnancy loss caused by the crash.
- Significant disfigurement: Visible scarring or disfigurement.
- Displaced fractures: Broken bones that shift out of place.
- Permanent injury: A body part that may never function normally again, proven by objective medical evidence.
If your injuries fall outside these categories, you may not recover non-economic damages at all.
Other gaps that can limit your recovery
Your right to pursue litigation carries little weight if the at-fault driver lacks the means to pay. Many motorists maintain only minimum liability limits or forgo insurance entirely. Uninsured and underinsured motorist coverage exists to remedy that shortfall. Elevated personal injury protection limits may also prove beneficial, as New Jersey mandates that your own PIP benefits serve as the primary source for medical expenses.
Reviewing your policy before it matters
Full coverage may protect your car, but it may not protect your legal rights. Your tort option, your UM/UIM limits and your PIP benefits all shape what you can recover after a crash. Reviewing these choices now could prevent costly surprises later.
Learning how motor vehicle accident claims work can help you weigh your options. If your injuries are serious or your claim becomes contested, an attorney can help you understand where you stand.