Motor vehicle accidents have the potential to disrupt our lives in several ways. You may even find that a disabling injury has compromised your job and your everyday lifestyle. Taking steps toward financial recovery for your losses starts with understanding the New Jersey “no-fault” insurance requirement and what these auto insurance policies mean for your recovery.
No-fault policies require that anyone suffering injuries in a car accident must first make a claim with their own insurance company for financial losses related to the accident. Personal injury protection (PIP) is what should cover your injuries in these accidents and is part of the no-fault system. Such coverage includes:
- Medical bills related to the accident
- Lost income from missing work
- Costs for rehabilitation
- Replacement services for duties you may have performed if not for the injury such as family care and routine home upkeep
A potential benefit to a no-fault insurance policy is that you may receive coverage for medical expenses quickly, therefore preventing a long wait for out-of-pocket reimbursement.
Does PIP cover every injury expense?
In an ideal world, your no-fault PIP policy would cover everything you need it to. Unfortunately, it is not always the case that you recover the full extent of your losses. You may need to file a lawsuit against the at-fault party in the case of severe injuries like severe disfigurement, death or for related other reasons. Conditions for such cases are known as the tort liability threshold.
Whether you meet these conditions will depend on the details of your case. You may need to speak with your legal representative to know if you have grounds for a lawsuit, or to better understand how to receive full recovery from your insurance company.