Car accident claims: what to do next in New Jersey

Who pays first: PIP

Every New Jersey auto policy includes personal injury protection, or PIP. The state insurance office says it is sometimes called no-fault coverage. That is because it pays your own medical bills no matter who caused the crash.

On a standard policy, PIP pays up to $250,000 per person for medical costs unless you choose a lower amount. The lower choices are $150,000, $75,000, $50,000 or $15,000. Even then, up to $250,000 is still paid for some severe injuries, such as serious brain or spinal cord injuries.

Source: N.J.S.A. 39:6A-4: PIP coverage regardless of fault · as of Oct 5, 2026

Source: N.J.S.A. 39:6A-4.3: PIP coverage options · as of Oct 5, 2026

Source: N.J.S.A. 39:6A-4.3: PIP coverage options · as of Oct 5, 2026

PIP also pays some lost income, up to $100 a week, and help with tasks at home, up to $12 a day. The low-cost basic policy has only $15,000 of PIP for medical costs, but up to $250,000 for some severe injuries.

Source: N.J.S.A. 39:6A-4: PIP coverage regardless of fault · as of Oct 5, 2026

Source: N.J.S.A. 39:6A-3.1: Basic policy · as of Oct 5, 2026

Your lawsuit option

Each New Jersey policy has one of two lawsuit options. With the limited option, you can sue for pain and suffering only after certain injuries, and a doctor must sign off. The injuries are death, losing a body part, serious scars, a fracture where the bone moved out of place, losing a pregnancy, or a permanent injury. A permanent injury has not healed and will not heal to work normally.

With the no limit option, you keep the right to sue for pain and suffering for any injury. If you did not pick an option in writing, you have the limited option. The basic policy always has it. The choice also covers family members who live with you.

Neither option stops you from suing for other losses. These include medical bills and lost wages above what PIP pays.

How fault is shared

New Jersey uses comparative negligence. You can recover if your fault was not greater than the fault of the people you claim against, combined. That means you can still recover at 50 percent fault, but not above it. Your money is cut by your share of the fault.

Coverage drivers must carry

Standard policies issued or renewed on or after January 1, 2026 must cover at least $35,000 per person and $70,000 per crash for injuries you cause. They must also cover $25,000 for property damage. They must have uninsured and underinsured motorist coverage at those injury amounts too.

Source: N.J.S.A. 39:6A-3: Required coverage limits · as of Oct 5, 2026

Source: N.J.S.A. 39:6A-3: Required coverage limits · as of Oct 5, 2026

The basic policy costs less and covers less. It has $5,000 for property damage and only $10,000 of optional injury coverage. People on federal Medicaid with hospital coverage may be able to buy a special policy. It pays for emergency care but does not cover harm you do to others.

Source: N.J.S.A. 39:6A-3.1: Basic policy · as of Oct 5, 2026

Reporting the crash

If a crash causes an injury, a death or more than $500 in damage to one person's property, the driver must tell the police fast. The state driver manual also says to tell your insurer at once.

Source: N.J.S.A. 39:4-130: Crash notice and written report · as of Oct 5, 2026

After such a crash, send a written report to the state Motor Vehicle Commission within 10 days. You do not need to if a police officer files a report. Knowingly breaking this rule can bring a fine and the loss of your license or registration.

Deadlines

Most New Jersey injury lawsuits must be filed within 2 years. A claim for a death has 2 years from the death. A lawsuit for PIP benefits from your own insurer is due 2 years after a loss you know came from the crash, or 4 years after the crash, whichever comes first. If PIP paid benefits, it can be 2 years after the last payment.

In New Jersey, your lawsuit option and the 2-year limits shape what you can claim, and exceptions can apply. People's Justice is not a law firm. We do not review your crash or recommend a lawyer. If you want, you can use the form on this page to ask to be connected with a law firm that pays us to advertise.