New Jersey Auto Insurance Coverage Terms
Personal Injury Protection – otherwise know as PIP. This pays for medical coverage for injuries sustained in an auto accident. It is sometimes called “no-fault” because it pays the medical expenses, no matter who caused the accident. It has two parts. 1) cost of treatment you receive from hospitals, doctors and other medical providers and any medical equipment that my be needed for treatment. 2) Reimbursement for other expenses such as loss of wages and the need to hire someone to take care of your home or family. Medical expense limit is $250,000. If a claim exceeds this amount, then the coverage gets transferred to your health insurance provider.
Bodily injury – pays for claims and lawsuits to people who are injured or dies as a result of an accident you cause. It compensates for paid, suffering, and economic damages such as loss of wages.Property damage – Pays for claims and lawsuits by people whose property is damaged as a result of an auto accident you cause.Uninsured Motorist – Pays to you, for property damage or bodily injury if you are in an auto accident caused by an uninsured motorist.
Right to sue
Unlimited right to Sue – Under the NO limitation or lawsuit option, you retain the right to sue the person who caused an auto accident for pain and suffering or any injury.
Limited right to sue – By choosing the limitation or lawsuit option, you agree not to sue the person who caused an auto accident for your pain and suffering unless you sustain on of the permanent injuries listed below (choosing this option does not affect your ability to sue for economic damages such as medical expenses and loss of wages)
List of Permanent Injuries
- Loss of body part
- significant disfigurement or significant scarring
- A displaced fracture
- Loss of fetus
- Permanent injury (any injury shall be considered permanent when the body part or organ, or both, has not healed to function normally and will not heal to function normally with further medical treatment based on objective medical proof)
Collision – Pays for damage to your vehicle as a result of a collision with another car or object.
Comprehensive – (Also know as “other than collision” – Pays for damage to your vehicle that is not as a result of collision, such as theft, vandalism, flooding, fire, broken windshield, or animal collision.