New Jersey handles car accident claims differently than most states. Understanding these differences matters because they directly affect how much money you can recover.
The No-Fault System
New Jersey is a no-fault state, which means your own auto insurance pays for your medical bills regardless of who caused the accident. This coverage comes through Personal Injury Protection (PIP), which is required on every New Jersey auto policy.
The tradeoff is that you generally can't sue the other driver for pain and suffering unless your injuries meet a certain threshold. If you have a "limitation on lawsuit" policy, you can only sue if you suffered a specific serious injury: loss of a body part, significant scarring, displaced fracture, loss of a fetus, or permanent injury. The New Jersey Motor Vehicle Commission publishes the official rules for auto insurance in the state.
Comparative Negligence
New Jersey uses modified comparative negligence. If you were partially at fault for the crash, you can still recover damages as long as your fault was 50% or less. Your award gets reduced by your percentage of fault.
Insurance adjusters love to argue shared fault because it reduces their payout. Even in clear rear end collision cases, they'll sometimes claim the lead driver stopped suddenly. Having an attorney who can counter these arguments makes a real difference in the final number. See how insurance companies handle claims for more on their tactics.
What to Do Right After the Crash
We wrote a full guide on what to do after a car accident, but the short version: call 911, exchange information, take photos, see a doctor within 48 hours, and don't give a recorded statement to the other driver's insurance company without talking to a lawyer first. Be aware of the statute of limitations for filing your claim.