New Jersey’s no-fault insurance system is outlined under the Automobile Insurance Cost Reduction Act (AICRA) but has been criticized for years for not providing enough protection to those injured in car accidents. However, this may change in that the New Jersey State Legislature has begun considering two bills that propose increased protection for injured victims of a car accident.
These bills seek to reduce insurance costs and better inform automobile insurance customers of their options and the consequences of certain insurance decisions. One specific thing these bills hope to inform customers of is the difference between the limited tort option and the no-threshold option.
Each and every driver in New Jersey is required to have automobile insurance, and yet many are unaware that by choosing this limited tort option, they will receive a reduced premium, but also a reduced ability to receive benefits from their claims. The no-threshold option, while much more expensive, allows a person injured in a car accident to receive compensation regardless of the type of injury and without limitations to that person’s right to sue.
Choosing the limited tort option when purchasing insurance relinquishes the consumer’s right to sue for pain and suffering in an accident as a way to receive a less expensive premium unless you are the victim of a permanent injury. The limited tort option tends to function as a defense for intoxicated and underinsured drivers in that they cannot be sued if the person harmed did not sustain permanent injuries.
This option has been widely criticized and many states have made efforts to correct this, but because it fulfills the AICRA’s goals of reducing insurance costs, New Jersey has yet to find a way to prevent people from taking advantage of this insurance option and ensure true justice is being provided to auto accident victims.
It has been suggested that the state’s legislature works to prevent the limited tort option from being used in situations involving intoxicated drivers, motorcyclists, and underinsured drivers. When the limited tort option is used as a defense by these classes of drivers, the injured person often walks away with little to no compensation and the driver who caused the injuries is left with no obligation to provide compensation.
If you or someone you love has been injured in a car accident, it is important to contact an experienced auto injury lawyer. The attorneys at Rinaldo Law Group can inform you of the best options to sue for compensation for your suffering and advise you on the most beneficial path. For more information or to schedule a consultation, call 1-833-RINALDO.