What Does No Fault Insurance Mean in New Jersey?

Posted on Oct 31, 2017

What Does No Fault Insurance Mean in New Jersey?

As you most likely know, auto insurance is required in the state of New Jersey.  Something that is somewhat different in New Jersey when compared to other states in the country is the existence of no-fault auto insurance laws. While the name implies that there is no fault assigned in auto accidents, this isn’t actually the case. At least, not in New Jersey.

In the state of New Jersey, no fault, in auto accidents, means that your insurance company is responsible for providing medical coverage in an accident regardless of which driver is “at fault” in the accident. Even if you are riding in another driver’s vehicle, your own insurance company will be responsible for your medical bills – up to the limit of your plan.

Medical Coverage by Another Name

For many NJ drivers, the medical coverage on your personal auto policy is provided under the title of personal injury protection or PIP. This not only covers the costs of initial medical treatment and necessary medical equipment but also extends to things like income continuation, rehabilitation services, etc.

What this means for drivers in New Jersey, is that you want to make sure you have a sufficient amount of personal injury protection insurance coverage to meet your needs in case you or one of your family members is involved in a serious accident – as drivers or as passengers.

Basic Insurance Policies in New Jersey

Basic insurance policies in New Jersey often offer minimal coverage for property damage liability and personal injury protection. The coverage amounts for the basic insurance policy are $5,000 for property damage liability, which does not extend to damage to your vehicle and $15,000 up to $250,000 for personal injury protection (PIP).

The basic policy also does not include bodily injury liability – something that is standard in many states.  Bodily liability coverage is available to be added to your basic auto insurance policy up to $10,000.  Bodily liability coverage is highly recommended because you can be sued if you’re found to be responsible for causing an accident in which people are injured.

Health Care Primary In lieu of Personal Injury Protection

With certain health insurance policies in New Jersey, excluding Medicare, Medicaid, and a select few others; you may be able to elect to use your Health Care Primary insurance as a coverage option. Doing so will help you reduce your personal injury protection premiums for each insured automobile.

Other Ways to Save with No-Fault Insurance in New Jersey

In addition to choosing the healthcare primary option for your insurance coverage, you can save by bundling auto and home insurance policies and increasing your deductible. These things work together to create lower insurance rates for you without sacrificing critical insurance protection.

Choosing the Right Insurance Agency for Your Important Insurance Choices

Making the right decision for auto insurance that will meet your needs and those of your family is important. That is why choosing an insurance agency with a reputation you can trust matters so much. Otterstedt Insurance Agency has been serving the auto and home insurance needs of families in New Jersey and beyond for nearly 100 years.

We believe a large part of our success is because we work with you to find the protection that best meets your needs as a family or individual rather than simply working to sell policies. Call us today, at 201-227-1800, with all your questions about no fault insurance in New Jersey and see for yourself what makes our agency so special.

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