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New Jersey’s no-fault auto insurance system is designed to provide quick access to medical benefits after a car accident without requiring injured drivers to prove who was at fault. That speed has real value. The limitation is that PIP coverage has caps, and serious injuries rarely stay within them.
How New Jersey PIP Works
Personal injury protection coverage in New Jersey pays for medical expenses, lost wages, and certain other costs resulting from a car accident, regardless of which driver caused the crash. Under New Jersey’s no-fault law, N.J.S.A. 39:6A, all registered vehicle owners are required to carry a minimum of $15,000 in PIP benefits, though higher limits are available and often recommended.
PIP payments begin quickly because there’s no need to establish fault first. For minor accidents where injuries resolve within a few weeks, PIP frequently covers everything the injured person needs.
Where PIP Falls Short
The problem arises when injuries are serious. A fractured vertebra, a traumatic brain injury, a torn rotator cuff requiring surgery, or a soft tissue injury that requires months of physical therapy can generate medical bills well beyond a $15,000 limit. Long-term care needs, specialist visits, imaging, and rehabilitation multiply those costs significantly.
When PIP benefits are exhausted and injuries continue to require treatment, the injured person is typically left either using their own health insurance or paying out of pocket, unless they can access additional compensation through a third-party claim against the at-fault driver.
Accessing the At-Fault Driver’s Liability Coverage
New Jersey’s no-fault system doesn’t prevent injured parties from pursuing the at-fault driver in all cases. Whether you can step outside the no-fault system and pursue a claim against the responsible driver depends on the type of coverage option you selected on your own auto policy.
Drivers who chose the limitation on lawsuit (verbal threshold) option can only pursue additional claims if their injuries meet specific qualifying categories including permanent injury, significant disfigurement, or certain fractures. Drivers who chose the no limitation on lawsuit (zero threshold) option can pursue a third-party claim regardless of injury severity.
Reviewing which option appears on your own policy is one of the first steps a Clifton car accident lawyer will take when evaluating your situation. That single choice on your declarations page significantly affects what’s available to you.
What to Do When PIP Is Running Out
If you’re approaching the limits of your PIP coverage and you’re still receiving treatment, acting promptly matters. Documenting your ongoing medical needs, preserving records of all treatment and expenses, and getting a clear picture of the at-fault driver’s available coverage are all steps worth taking before the situation becomes more difficult to address.
The Law Offices of David A. DiBrigida helps New Jersey residents understand their options after car accidents, including situations where PIP has been or is about to be exhausted. A Clifton car accident lawyer can evaluate your policy, your injuries, and your options so you know exactly where you stand and what steps make sense from here.
