New Jersey No Fault Insurance

Have you heard the term NJ No Fault and you wonder what it actually means? New Jersey No Fault insurance, as its also referred to, is a set of rules and regulations regarding auto insurance. Under No Fault law, the insurer compensates you, as insured driver for any monetary loss, regardless of the person at fault in an accident. This is in contrast to the conventional systems in which the responsible party driver should pay for most of the compensation after thorough investigation by the insurers or courts.

No fault system is designed to facilitate payment processes to injured individuals, while lessening the burden involving the courts. With No fault system, it becomes difficult, if not impossible, for you to sue a faulted driver for any damage. Injuries need to be serious to take legal action. A great benefit of No Fault is the assured monetary compensation. However, there is a cap on the compensation to be paid.

New Jersey No Fault Laws

New Jersey uses its own version of no fault insurance system. It likewise allows its drivers to choose Tort or traditional insurance. New Jersey Tort insurance is much like those in other US states. On the other hand, no fault insurance covers all monetary damages without any need to go to court.

If you want to drive the roads of New Jersey, you must possess PIP, or Personal Injury Protection. PIP is actually part of no fault insurance. It is required by all US states that utilize no fault system. Other coverage that New Jersey will require you to have includes property damage, bodily injury, and uninsured motorist.

The State’s no fault insurance law is unique because insurance owners can sue if any damage reaches a specific threshold. In New Jersey, the threshold involves no money; hence, the subject of debate is on how serious damage should be to justify litigation. The advantage of not establishing a monetary threshold is that no medical bills are inflated just to reach a threshold.

New Jersey Liability and No Fault Insurance Requirements

State law of New Jersey requires minimum limits of Bodily Injury Liability of $15,000 for every injured person, to a maximum of $30,000 for every accident. Coverage of Property Damage Liability is set on a minimum limit, which is $5,000.

The state of New Jersey adheres Choice No Fault Insurance system, which means that you, as a driver, can reject No-Fault system options, and claim your right to sue for related injuries.

Personal Injury Protection, or PIP, helps you to pay for any reasonable medical costs, for you as well as your passengers. State law of New Jersey has a minimum requirement of $15,000, in terms of Personal Injury Protection coverage.

To protect you and passengers of your vehicle against any damages caused by an uninsured driver, the State law of New Jersey requires minimum motorist coverage of a minimum of $15,000 for every person. There is likewise maximum coverage of $30,000 for every accident or bodily damage inflicted by the uninsured driver.

New Jersey DUI Laws

New Jersey boasts of a number of unique DUI laws. In 2005, the State passed “John’s Law,” after John Elliot. He was killed in an accident by a drunk driver, who was still in an intoxicated state, even after his release from jail. John’s law permits authorities to confiscate the car of a drunk driver for at least 12 hours.

If you refuse a breath or blood test following a stop due to suspected DUI, this is evidence admissible in New Jersey courts. There are likewise surcharge penalties, like:

  • $1,000 annually for a maximum period of 3 years for the first two DWI convictions during a 3-year period
  • $1,500 annually for 3 years for any third offense
  • Surcharge of $100 in DUI enforcement

If you are a commercial driver, penalties are severe. First offense will cause your commercial driver’s license (CDL) to be suspended for 1 year. On the other hand, basic driver’s license will be suspended for at least 3 months. If you are convicted for DUI for the second time, this will result in a permanent CDL revocation. Your basic license will be suspended for two years. Any following convictions will cause you to lose your basic license permanently.

Cheap Auto Insurance in New Jersey

You can find cheap coverage in New Jersey without too much effort. As a driver in New Jersey, you have full control on the amount for your car insurance. You have a complete say in the choice of your insurance company.

First of all, choose a company that will provide you substantial discounts. Today, auto insurance companies are required to offer discounts on premiums to those whose cars have anti-theft and other safety gadgets, like anti-lock brakes and airbags.

Deductibles and premiums are related to each other. If you decide to get high deductible, you automatically get low premiums. This way, you enjoy affordable coverage. You may opt for high deductible for coverage, like comprehensive, PIP and collision. However, if you already own a completed-paid vehicle, you might want to drop comprehensive and collision coverage. This way, you will enjoy getting affordable car insurance in New Jersey.

Compare quotes today and see how much you can save on New Jersey No Fault auto insurance.