How Does the New Jersey Personal Injury Protection Work? 

Personal injury protection (PIP) is also called no fault insurance. If a driver is involved in an accident, PIP pays for their living expenses and medical bills. The insurance also pays for any suffering caused because of an injury sustained in an accident. PIP pays regardless of which driver caused the accident. However, in New Jersey, there are two different options for how PIP works. There are a health insurance coverage and lawsuit restriction. An individual involved in a car accident in the state should contact a personal injury attorney northfield nj for assistance.

The Health Insurance Coverage in PIP

PIP covers the health insurance part of the accident. This includes lost wages, medical costs and funeral costs (if the driver dies in the accident or because of the accident). The types of medical costs covered include rehabilitation costs, ambulatory services, diagnostic services and medication.

New Jersey PIP insurance covers lost wages too. The wages must be lost because of an inability to work because of the injury sustained in the accident. The default coverage typically starts at $100 each week. The pay out each week can go as high as $5,200 each week. The policy limit is usually $15,000. However, it is important to read the policy to make sure.

There is a limit. The weekly pay can’t be more than the normal income the driver receives from their paycheck. PIP does pay for work that a driver would do around the house such as cleaning. The payment is usually not that much money.

The Limited or Full Lawsuit Option in New Jersey

Since the state is a no-fault state, it gives drivers the option to choose whether they will sue the other driver. This means that they are free to include the option to sue any driver who causes an accident for damages like pain and suffering and medical bills. A driver who chooses the limited option can still sue any driver that caused the accident. However, they can’t sue them for any pain and suffering they sustained because of the accident. The only exception to this rule is if the driver was disfigured or if a fetus died in the accident. If the driver chooses the unlimited right to sue option, they have the option to sue for medical expenses and pain and suffering.

Filing an Insurance Claim in New Jersey

The driver can file for PIP benefits when they have sustained some type of bodily injury because of an accident. They are also eligible if they are injured in an accident and was a pedestrian. The insurance company will usually want a written notice immediately after the accident. This will satisfy the requirement the company needs to pay medical expenses for any injuries suffered.

However, the driver must also file a PIP form. This is a form detailing the injury, the accident and any medical treatment sought. The notice must be received within 21 days of the first office visit to receive compensation.