By FindLaw Staff | Legally reviewed by Garrett Monteagudo, Esq. | Last reviewed January 18, 2023
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New Jersey is the country's most densely populated state. In such a congested area, car accidents are unavoidable. If you have been in a car accident in the Garden State, there are several requirements and limitations to receive compensation for damages caused by someone else's fault. Thus, it's important to research New Jersey car accident compensation laws in order to seek proper damages for your injuries.
This article provides a brief overview of New Jersey car accident compensation laws.
New Jersey is one of the few states that follow the "no-fault" insurance system. Under the no-fault system, you must turn to your own insurance company first to pay medical expenses and other losses arising out of the car accident. One of the benefits of the no-fault system is that medical expenses are paid quickly, avoiding extensive time periods to receive reimbursement for out-of-pocket medical bills and other expenses. However, the no-fault policy limits your right to sue for pain and suffering unless in the most serious injuries.
In New Jersey, there are two common types of insurance policies: (1) Standard and (2) Basic. The Standard Policy includes multiple coverage options and the opportunity to buy additional protection. Most people in New Jersey are insured under this policy. The Basic Policy could be an option for people with few family responsibilities and few assets to protect.
Standard Policy:
| Bodily Injury Liability |
|
| Property Damage |
|
| Personal Injury Protection |
|
| Limitation to Sue | You must choose one:
|
Basic Policy:
| Bodily Injury Liability | Not included, but $10,000 coverage for all persons, per accident, available as an option |
| Property Damage | $5,000 per accident |
| Personal Injury Protection |
|
| Limitation to Sue | Optional:
|
Note: State laws are always subject to change through the passage of new legislation, rulings in the higher courts (including federal decisions), ballot initiatives, and other means. While we strive to provide the most current information available, please consult an attorney or conduct your own legal research to verify the state law(s) you are researching.
If you are suing someone, there are specific deadlines and limitations depending on the type of case you're filing. In car accident cases, you have two years to file a lawsuit in New Jersey. After this time period, you won't be able to file a lawsuit against your opponent.
Also, some states limit the amount of damages that may be awarded for a case. This type of law is known as a damages cap. In New Jersey, the state applies a damages cap on punitive damages, which are available in cases of serious or malicious wrongdoing. Punitive damages are capped at 5 times the amount of compensatory damages or $350,000, whichever is greater.
New Jersey applies the modified comparative negligence standard in personal injury cases. That means that as long as you are not more than 50 percent at fault, you are able to recover damages diminished by the percentage of your fault. However, if you were more than 50 percent at fault, you cannot collect any compensation at all.
For example, at a trial, the jury determines the amount of damages you've suffered is $100,000. However, you were 20 percent at fault and your opponent was 80 percent at fault. In this case, you would be able to recover 80 percent of $100,000 in damages, which is $80,000. However, if you are found to be 60 percent at fault, then you won't be able to receive any compensation because you are more than 50 percent at fault.
New Jersey is a no-fault state that is subject to several limitations and rules when it comes to car accidents. Even a minor car accident may require complex legal research in order for you to receive the compensation you deserve. To protect your best interests, contact an experienced New Jersey car accident attorney near you.
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