The concept of no-fault insurance claims first began in the United States in the early 1930’s, though it did not gain much popularity until it was refined in 1965 by Professors Robert Keeton and Jeffrey O’Connell. No-fault insurance, sometimes referred to as Personal Injury Protection (PIP), allows for the payment of medical expenses and other damages such as lost wages due to injury resulting from an auto accident. PIP was constructed with the intent to reduce the incentive to litigate as well as shorten the settlement wait-time brought on by the litigation process. If medical debts are being taken care of through each party’s personal auto insurance, the injured parties will be able to reap their full compensation immediately, regardless of who may have caused the accident.
In the United States, there is no federal regulation for personal injury protection, every state implements their own set of standards on what defines no-fault coverage. In New Jersey, damages that are not covered under the restrictions of PIP, mainly damages that fall under pain-and-suffering, must be purchased as additional liability insurance. Compensation granted through liability insurance is broken into two forms: Bodily Injury and Property Damage, with an option to purchase a combined coverage policy. Bodily injury liability coverage will pay to settle lawsuits and insurance claims of any persons injured or killed as a result of an accident you had caused. Similarly, property damage liability coverage will compensate those who have had their property damaged as a result of an accident you caused.
New Jersey currently offers two no-fault insurance policies to motorists: basic and standard. The basic policy offers limited benefits and only provides enough coverage to meet the minimum standard of the state for liability coverage. A standard policy generally costs more than the basic plan, however, there are a number of coverage options available within the plan and an option to purchase additional coverage protections.
If you have been injured in an auto accident and have outstanding expenses that are not covered under your no-fault insurance policy, it is important that you speak to an experienced New Jersey auto accident lawyer who can help you recover the compensation you are entitled to. The attorneys at the Rinaldo Law Group PLLC are skilled personal injury lawyers who will fight for the justice you deserve. To schedule a consultation, contact our office today at 908-352-2500.