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How Does New Jersey’s No-Fault Insurance Law Limit My Right to Sue?

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New Jersey is a hybrid no-fault state for automobile insurance, giving motorists the option of choosing less expensive no-fault insurance with only a limited right to sue or more expensive insurance with full rights to personal injury compensation. You must decide between:

  • Basic policy — This no-fault plan requires you to carry a minimum of $5,000 in property damage liability and $15,000 in personal injury protection (PIP) per person, per accident. The basic policy does not require you to carry liability insurance. But, if you don’t have liability coverage, you may be personally liable for losses not covered by another person’s PIP. Under the basic policy, your remedy for an injury is to file a claim with your own insurer. You can recover your medical expenses and income losses up to the limits of your policy, but you cannot recover compensation for your pain and suffering or other noneconomic losses unless you suffer what the law defines as a “serious injury.”
  • Standard policy — This more expensive insurance includes bodily injury liability starting at $15,000 per person and $30,000 per accident. You may choose a cheaper “limited right to sue” option for this insurance, or you can opt for the more expensive “unlimited right to sue.” The limited right to sue means you can only sue for noneconomic losses when you suffer a serious injury. With the unlimited right to sue, you can sue for pain and suffering for any injury.

No matter what type of policy you have, you may sue if your injury involves:

  • loss of a body part
  • significant disfigurement
  • significant scarring
  • a displaced fracture
  • loss of a fetus
  • permanent injury, meaning the affected body part has not healed to allow normal function, and is not expected to
  • death

We recommend drivers retain their full right to sue and carry as much insurance as they can reasonably afford, for the following reasons:

  • If you are liable for an accident and do not have sufficient coverage to pay a judgment, an injured party can attach your assets, including your home or your business, and can even garnish your wages until the judgment is paid.
  • Losses even for an injury the law does not regard as serious can exceed the levels of your PIP coverage
  • An injury the law does not regard as serious can still involve significant pain and suffering, for which you should be compensated
  • If you have given up your right to sue, you have no way to recover your deductible

Each driver must make a decision based on their own financial circumstances, but it’s important to be aware of how each choice could impact your future.

If you’ve been injured in an auto accident in Bergen County or anywhere in New Jersey, consult an experienced personal injury attorney at Seigel Law as soon as possible. Contact us online or call 201.444.4000 today for a free case evaluation.

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Meet Our Attorneys


  • (61 Reviews)

    By Teresa R Perez - January, 2018

    I have had a great experience thus far. The personal injury process is stressful and they have been helpful and courteous in getting me the right referrals. I was injured while visiting NJ and live in another state, my case is not an easy one but they are working diligently to help. I appreciate the personalized attention and highly recommend this firm.

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    By Miriam Smith-Leone - December, 2017

    The law office was great with my back and neck injury. They directed me to the right doctors and got me a huge settlement. Being a single mom, it help pay off all my debt and bills. Me and my kids can have a bill free christmas, with plenty of food and happiness, stress free. They are the best ever and I would highly recommend them to anyone rich or poor, who has been in an accident and need legal help...

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    By L C - October, 2017

    After the misfortune of suffering an injury, I had the good fortune to choose Seigel Law to represent me. During my initial meeting with Jan Seigel, I found him to be extremely confident and reassuring---he totally put me at ease. I was represented by Mark Mc Bratney---an EXCELLENT attorney. He was supportive and professional through the entire process, and provided an excellent outcome for my case.

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    By Liliana Paredes - October, 2017

    Honest, trustworthy and very straight forward. In unvarnished truth Jonas Siegel will tell you exactly where you stand and what direction you should go. Jonas has tenacity coupled with a degree of tenderness, but never losing site of the end goal, which is to protect, defend and have the best outcome for his clients. I defenetly recoment this law firm. Thanks for helping me out in my case.

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    By Oren Goldshmidt - September, 2017

    I'd like to thank everyone at segal law for the amazing experience they provided me. From the moment I stepped in to the end of the case , segal and his team delivered exactly what they promised. I couldn't have received any better treatment from a law firm. Any concerns, questions or problems I had were addressed and dealt with accordingly...

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What we offer our clients


Knowledge

Personal injury and medical knowledge

Our knowledgeable team of personal injury lawyers includes a medical doctor who advises on complex medical topics

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One-on-one attorney attention

By maintaining a limited number of cases, our attorneys can provide personalized attention to each client we serve

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Results-oriented strategies

Our lawyers have won numerous high verdicts and settlements, many in the high six- and seven-figure range, for our injured clients

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Trial experience

Every trial attorney in our firm is a certified trial attorney by the New Jersey Supreme Court

Communication

Communication as a priority

We understand how important communication is to a successful attorney-client relationship, we return calls within 24 hours

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Community involvement

Our lawyers and staff are active in community outreach and community service programs

Testimonials
  • "The lawyers at Seigel Law know how to get you the results you want. Jan Seigel and His team returned every one of my phone calls, listened to me and worked with me to a desirable outcome. Seigel Law definitely goes above and beyond to protect the injured." - B.M.

  • "After my car accident, my life turned into a disaster. Dealing with everything became impossible. Jan Seigel and his people helped me with every aspect of my injuries and the insurance companies so I could focus on healing. They helped me through everything and they got me what I was due." - M.P.

  • "I found the personnel to be very efficient, and work very quickly. I'm happy that I was referred to this firm, because I found that I was very comfortable working with them." - F.V.

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