NJ auto insurance buyers who choose the standard policy must make a decision about whether they want to retain an unlimited right to sue for damages if they are injured in an accident or if they want to opt for limited rights to do so. These rights refer to claims for pain and suffering only. Medical bills and other related expenses are covered under the policyholder’s Personal Injury Protection (PIP) plan and the policyholder’s insurance company will pay for these expenses up to the policy limit which was in place at the time of the accident.
The unlimited right to sue option means that the policyholder, his or her spouse, children and any family members residing with the policyholder who are not covered under an auto insurance policy can sue the at-fault driver in an accident for any injury.
Under the limited right to sue option, a person injured in an accident can only make a claim against the at-fault driver in certain circumstances, including a permanent injury, one which caused significant scarring or disfigurement or the loss of a fetus. The limited right to sue also applies in the case of a fatal accident.
Before making a decision about NJ auto insurance coverage and the right to sue, a driver should take the time to consider both options carefully, including comparing the cost of both of types of coverage.