No-Fault Insurance Does Not Automatically Allow Suing At-Fault Driver

No-Fault Insurance For Auto Restricts Your Right to Sue

When you purchased your no-fault insurance coverage, you likely balanced your need for protection with the cost of the insurance. Standard auto insurance policies in New Jersey provide policy owners with bodily injury liability coverage per person between $15,000 and $250,000. If you elected to upgrade your policy with the “unlimited right to sue” option, then you face fewer restrictions than people with basic policies that limit their right to sue.

No-Fault Insurance and the Limited Right to Sue

The no-fault insurance laws of New Jersey require accident victims to seek compensation first from their auto insurance policies. The personal injury protection (PIP) portion of the policy covers medical bills and lost wages up to the amounts specified within a policy. The determination of fault for the accident is not necessary to make claims upon this coverage.

PIP does not pay damages for pain and suffering. Insurers and the law view pain and suffering as non-economic damages because they do not produce receipts like other expenses, such as a hospital bill.

Non-economic damages could become accessible in some cases for people covered by policies that limit their ability to sue. One or more of the following specific conditions could authorize you to sue the at-fault driver:

• Loss of body part
  
• Displaced fracture
  
• Substantial disfigurement or scarring
  
• Loss of pregnancy
  
• Permanent injury
  

The law could recognize an injury as permanent if you’re not expected to regain normal function. A conversation with an auto accident attorney could inform you about your right to sue another party for car accident damages.

An accident that inflicted serious injury on you or another covered individual in your vehicle could unlock your ability to pursue additional compensation. You could file an insurance claim against the other driver’s policy or prepare a personal injury lawsuit. A third-party insurance claim or lawsuit under these conditions could result in the recovery of money for car accident pain and suffering. An auto accident attorney at RAM Law can guide you through your options and manage the paperwork related to holding an at-fault driver accountable. They can also help you understand your rights after an accident.

Brain and Spinal Cord Injuries

If you have low insurance coverage, such as a basic policy with only $15,000 PIP per person, your insurer might still pay more for severe brain and spinal cord injuries. The $15,000 cap might not apply for victims of these injuries and disfigurement. Benefits might range as high as $250,000.

You might want to consult an attorney at RAM Law if you’re uncertain what your policy might cover. An attorney can communicate your special situation to your insurance company. Our representation could potentially achieve a settlement that alleviates the financial burdens of your accident injuries regardless of whether you can file a lawsuit against the at-fault driver.

Unlimited Right to Sue

When New Jersey residents buy a standard auto insurance policy, they have the option to upgrade to an unlimited right to sue. This choice reduces restrictions on your ability to seek financial damages from an at-fault driver. If your policy has this feature, then your injuries don’t have to meet the criteria normally imposed by insurance law.

Find Out Where You Stand After an Auto Accident

Insurance policies by their nature can be difficult for most people to understand. An analysis of your policy and injury status by a knowledgeable auto accident attorney could prevent you from missing out on compensation that you need. We’re fully prepared to make your insurer recognize your legal rights and the expenses related to your accident. Call our office in New Brunswick, NJ, at (732) 247-3600 or our office in Somerville, NJ, at (908) 448-2560. You can also email us at [email protected] to set up an appointment to discuss your auto accident case.