New Jersey Car Accident Settlement Process and Timeline

The process and timeline for car accident settlements in New Jersey depend on the severity of the personal injury, the extent of the property damage and whether a lawsuit is involved.

Most of us will be in a car accident at some point. While most car crashes are minor, there are thousands of car accidents in New Jersey alone every year. In 2024, there were more than 560 fatal auto accidents in the Garden State.

When a person is hurt in a motor vehicle accident, they may have a legal claim for damages. It doesn’t matter who the at-fault driver is. Even if you didn’t cause the crash, you must file a claim with your insurance company first.

If the insurance adjuster denies your claim or your policy doesn’t cover your full expenses, you may have to file a car accident lawsuit against the other driver. This article will explain how the car accident claims process works and discuss the settlement timeline for your New Jersey car accident.

If you were recently involved in a collision and believe the other driver was at fault, contact a car accident attorney as soon as possible. The links at the end of this article should also prove helpful.

Whose Insurance Company Should You File Your Claim With?

In some states, accident victims file their claim with the at-fault party’s insurance company. However, New Jersey is a no-fault state. This means that your auto insurance carrier will pay your claim regardless of who the at-fault driver is. There's the possible problem of there being no guarantee your personal injury protection (PIP) policy will cover your full damages.

Your PIP coverage should pay for the following:

• Medical treatment and medical bills
• Lost wages
• Death benefits in wrongful death cases
• Other accident-related expenses

If your insurance policy doesn’t cover all your expenses, you must file a claim against the other driver. Whether your PIP covers your damages will depend on several things, including the severity of the injuries you suffer, the extent of your medical expenses, and other factors.

Most Car Accident Claims Settle with the Insurance Company

Not only do many car accident lawsuits settle out of court, but most accident victims settle their claims with the insurance companies without the need for legal action. Even if you file a personal injury lawsuit, your car accident lawyer will try to settle your car accident case before it goes to trial.

The insurance carriers accept that most insurance claims are legitimate. Still, insurance companies cannot automatically approve every claim. If they did, they’d go out of business. There are times when the insurance adjuster has a legitimate reason to deny a person’s claim. Other times, they may deny a claim with the hope that they can settle it for much less down the road.

It’s in everyone’s best interest to settle car accident claims. From the perspective of the insurance company, there are multiple incentives to settling a person’s accident claim.

Some of these reasons include the following:

• The insurance carrier is legally required to represent its insured, and this can cost them thousands of dollars in legal fees, costs, and other resources
• The insurance adjuster knows there is a good chance they may lose at trial
• The insurance company doesn’t want to risk a bad faith claim for refusing to pay a valid claim
• It will cost the insurance company a lot less to settle than it would to pay the full amount

It’s not just the insurance provider that benefits from a personal injury settlement. There are various reasons why an accident victim would want to settle their claim, including:

• There’s never a guarantee that you’ll win at trial
• Trials are time-consuming and expensive
• It can take months or even years for your personal injury case to go to trial
• With a car accident settlement, you walk away with a lump sum as opposed a payment schedule
• You’ll pay your personal injury lawyer much less in costs and fees if you settle your case out of court

Your personal injury attorney will work to elicit a settlement offer from the insurance company and their attorneys. Given that the insurance companies have a legion of their own attorneys to fight your claim, having proper legal representation is a necessity.

How Car Accident Settlements Work in New Jersey

More than 95% of all personal injury cases, including car accident cases, settle out of court. Once your attorney negotiates a fair settlement, they will put the settlement terms in writing and drop the pending lawsuit.

The New Jersey courts do not require mandatory settlement conferences, but the court rules explicitly allow judges to order a conference on a case-by-case basis. Even if the judge doesn’t order a settlement conference, attorneys from both sides will try to negotiate the case long before the trial date.

Average Car Accident Settlements in New Jersey

Given the disparity of different collisions, there is no real way to determine the average amount of a New Jersey car accident settlement. The amount of money your attorney includes in their demand letter will depend on the facts of the case and the severity of the injuries.

Your damages will also depend on the evidence supporting your claim. For example, if the police report and your medical records justify $100,000 in damages, your attorney will start negotiating at an amount higher than this. This is based on knowing that the insurance company will come back with a much lower settlement offer.

When determining a fair settlement amount in your case, you must also consider the following:

• Insurance coverage (insurance companies won’t pay more than policy limits)
• The amount you paid in car repairs
• Your past and future medical bills
• Pain and suffering
• Lost wages
• Lost future income
• The possibility that the jury’s verdict may include punitive damages

Once your attorney and the insurance company agree on a settlement amount, the insurance carrier will send your car accident lawyer a settlement check.

How Long Do I Have To File a Car Accident Lawsuit in New Jersey?

New Jersey has a time limit (statute of limitations) for filing a car accident lawsuit. The statute of limitations for all personal injury cases is two years from the date of the accident for personal injury claims and six years for property damage.

If you don’t file your lawsuit before the statute of limitations period expires, you’ll lose your chance to pursue damages. The court will dismiss your claim if you miss the deadline by even one day. One way to avoid this critical mistake is to meet with a New Jersey car accident attorney long before the statute of limitations period ends. They’ll need time to prepare your case and engage in settlement negotiations with the insurance provider.

Note: Your personal injury lawyer will include a demand for property damage in your initial claim. An accident victim would rarely file a separate claim for damage to their car.

Disclaimer: State laws change frequently as a result of new legislation, higher court rulings, and other means. While FindLaw strives to provide readers with the most current information, conduct further research or contact a local attorney to confirm your state laws.

Seek Legal Advice with Your New Jersey Car Accident Case

If you or a loved one suffers serious injuries in a motor vehicle accident, you may have a valid claim for damages. The best way to know if your claim is valid is to sit down with an experienced car accident attorney.

Your attorney will try to negotiate a settlement agreement to get the fair compensation you deserve. They will also explain the New Jersey car accident settlement process to you and answer any questions you have.

If settlement negotiations break down, your car accident attorney will gather evidence to support a personal injury lawsuit. They’ll conduct depositions on your behalf and explain the legal process to you along the way. An experienced auto accident attorney in New Jersey will give you a free initial consultation.

Related FindLaw Resources

• New Jersey Car Accident Compensation Laws
• Car Accident Legal Help
• Car Accident Resources
• Car Accident Law