Navigating New Jersey Car Insurance Laws

Navigating the complex world of car insurance laws in New Jersey can be a daunting task. With a plethora of regulations and requirements, understanding your rights and responsibilities as a driver is crucial. Whether you have been involved in a car accident or simply want to ensure you are adequately protected, it is important to have a clear understanding of New Jersey’s car insurance laws. This article will provide you with the information you need to know and introduce you to the experienced New Jersey car accident attorneys at Mazie Slater who can help guide you through the process.

How Car Insurance Coverage Works in New Jersey

There are a few things you should know about how car insurance coverage works in New Jersey:

Deductibles: A deductible is the amount you have to pay out of pocket to make a successful insurance claim. For example, if you make a successful claim for $10,000 and your deductible is $1,000, you’ll receive $9,000 ($10,000 – $1,000). You can think of a deductible as the “cost” of receiving your insurance payout.

Copayments (“Copays”): Insurance will also often require you to pay a copayment (or “copay”) when receiving insured services. If your copay for a doctor’s visit is $20 and your doctor charges you $100, your insurance company will pay $80 and you will pay $20.

The details about deductibles and copays should be included in your insurance policy.

Mandatory Coverage Requirements: One of the most significant aspects of New Jersey’s car insurance laws is its no-fault insurance system, designed to protect healthcare providers and curb litigation. Under this system, drivers are required to carry Personal Injury Protection (PIP) coverage, which pays for medical expenses and other related costs, regardless of who is at fault in an accident. 

Policies: New Jersey offers two types of car insurance policies:

  • Basic Policy: Cheaper but with limited coverage. Current legislation requires:
    • At least $15,000 in personal injury protection
    • At least $5,000 in property damage liability
  • Standard Policy: Offers more substantial coverage, including:
    • Up to $250,000 in personal injury protection
    • Up to $100,000 in property damage liability insurance
    • Up to $500,000 in bodily injury liability protection
    • Additional coverage options such as death benefits, funeral expense benefits, income continuation, and additional underinsured/uninsured motorist coverage

Penalties For Non-Compliance With Car Insurance Laws

While understanding the various types of coverage and benefits that you can include in your car insurance policy is essential, it is equally important to be aware of the consequences of non-compliance with New Jersey car insurance laws. Failing to maintain the required minimum coverage can result in severe penalties and legal consequences.

In New Jersey, driving without car insurance is considered a serious offense. If caught without insurance, you may face fines, suspension of your driver’s license, and even imprisonment. Additionally, your vehicle registration could be suspended, and you may be required to provide proof of insurance coverage to reinstate it.

To avoid these penalties, it is crucial that you consistently maintain the mandatory minimum coverage and keep your insurance policy active. Understanding the consequences of non-compliance will help you make responsible choices and prioritize your car insurance needs.

Car Accident Compensation Options

In New Jersey, car accident victims have two primary ways to recover compensation:

  1. No-fault claim: A lawyer can file a claim against the driver’s own insurance company. However, carriers often limit benefits for medical expenses, rehabilitation, and ongoing care, even with Personal Injury Protection (PIP) insurance.
  2. Personal injury lawsuit: If no-fault options are insufficient, your lawyer can file a lawsuit against the other driver. This must be done within the two-year statute of limitations.

New Jersey uses comparative negligence to allocate fault between parties when responsibility isn’t clear-cut.

Necessary Steps After A Car Accident

In order to successfully file an insurance claim or win a lawsuit against another driver, there are some necessary steps to follow in order to protect your legal rights and ensure the best possible chance of compensation:

  • Exchange information with the other driver or drivers.
  • Get the driver’s policy number, carrier, plate number, and vehicle information.
  • Identify eyewitnesses and copy their contact info.
  • Contact local law enforcement or 9-1-1.
  • Do not reveal the details of your insurance coverage.
  • Never sign insurance documents before contacting a qualified lawyer.
  • Take pictures of the accident scene to document damage.
  • Never admit liability.

After an accident, many injured people will be contacted by their own insurance company, or the insurance company covering the other driver. Many injured people assume that the insurance companies have their best interests at heart and simply want to help them get back on their feet after a traumatic event; this is not true.

Insurance companies are motivated by their own financial interests, which is to pay you as little as possible by settling your claim without going to court. That’s why it’s in your interest to contact an experienced personal injury lawyer as soon as you can after an accident, even before signing a release of your medical records or giving a statement to the insurance company.

The Benefits of Hiring a Car Accident Attorney in New Jersey

Car accidents are a leading cause of serious injuries and personal injury lawsuits in New Jersey. As such, insurance companies prioritize their financial interests by aiming to settle claims for as little as possible without going to court.

An experienced attorney can bring a number of advantages to your claim:

  1. Expert Knowledge of State Laws: Attorneys are familiar with how New Jersey’s no-fault system operates and can provide invaluable guidance on navigating potential claims.
  2. Effective Negotiation Skills: Insurance companies seek to minimize payouts. An attorney can negotiate effectively on behalf of the client to ensure fair compensation.
  3. Litigation Support: If a case goes to court, having an attorney equipped to handle litigation can be crucial to achieving a favorable outcome.
  4. Maximized Compensation: Experienced attorneys understand the various damages available, including medical costs, lost wages, and pain and suffering, and can help clients pursue all potential avenues for compensation.

An experienced attorney will manage your case, interview witnesses, gather evidence, hire experts such as certified accident re-constructionists, and ensure your legal rights are protected throughout the entire process. If you choose an attorney from Mazie Slater Katz & Freeman, we will review the merits of your claim with no cost or obligation.

Contact The Experienced Car Accident and Insurance Attorneys at Mazie Slater

If you find yourself navigating the complexities of New Jersey car insurance laws after an accident, don’t hesitate to reach out for professional assistance. The experienced car accident attorneys at Mazie Slater Katz & Freeman are dedicated to protecting your rights and ensuring you receive the compensation you deserve. With a proven track record in successfully handling car accident cases, our team is prepared to guide you through every step of the legal process, from filing claims to negotiating with insurance companies. Contact us today to schedule a free consultation and take the first step toward securing your future. 

Locations We Assist Throughout New Jersey

Mazie Slater Katz and Freeman are proud to provide experienced car accident attorneys throughout the following counties in New Jersey: