YYour car insurance policy consists of several coverages that help pay for expenses in different situations. One of those coverages is personal injury protection, or PIP. What does personal injury protection cover in New Jersey? Here’s what you need to know about personal injury protection, what it covers, how much coverage you should get and more.
What is personal injury protection?
Personal injury protection (PIP) helps pay for medical and other expenses regardless of fault for you and your household family members. It may also provide coverage for you if you are struck by a car while a pedestrian. PIP is sometimes known as “no fault coverage” because it provides coverage regardless of fault.
PIP coverage details
In New Jersey, you are required to carry at least $15,000 of personal injury protection coverage on your car insurance policy. A limit is the amount of coverage an insurance carrier will pay up to in the event of a claim.
PIP not only covers medical expenses, but may also cover many non-medical related benefits like lost wages, funeral costs, substitute services and more. The exact coverages will vary based on your individual policy, so check in with your insurance company for specifics. PIP in New Jersey may cover:
- Medical expenses
- Lost wages
- Rehabilitation Costs
- Funeral Costs
- Substitute for services
No fault insurance: How does it work?
No fault insurance is a type of insurance system where each party’s own insurance coverage pays for their medical expenses, regardless of fault. States with this no fault insurance system are known as “no fault” insurance states.
In no fault states like New Jersey, your own coverage will be the primary source to help pay for your injuries and medical expenses in the event of a motor vehicle crash.
Benefits of PIP
Since you decide on your coverage limit when you buy your insurance policy, you know how much coverage you have access to in the event of a claim.
PIP also provides additional coverage beyond just medical expenses. If your injuries prevent you from working, PIP can help compensate you for lost wages. It can also help cover costs of essential services you can no longer perform.
Requirements and limitations
In New Jersey, PIP is mandatory coverage for insurance policies. New Jersey is considered a “no fault” state when it comes to insurance law, which means drivers must have their own personal injury protection coverage on their insurance policy.
PIP coverage in New Jersey carries a deductible and co-pay. You pay your PIP deductible and co-pay for each claim in which you are injured.
In most cases, PIP covers you and your household family members. Passengers may be covered if they don’t have applicable coverage on another policy. Keep in mind that PIP does not cover injuries you cause to another person. Your bodily injury liability coverage will help pay for injuries you cause to others.
PIP does not cover physical damage to your car, another driver’s car or any other personal property. To protect your vehicle, you will need collision and comprehensive coverage. Your property damage liability coverage will help pay for property you are liable for damaging in a motor vehicle crash.
Conclusion: Personal injury protection in NJ
Personal injury protection helps pay for the medical expenses of you, your household family members and in some cases passengers if they don’t have applicable coverage on another policy, when injured in a crash. Beyond necessary medical expenses, PIP can help pay for other expenses like lost wages, substitute services and more. PIP is required in New Jersey, where individuals go to their own insurance policies for medical expense coverage regardless of fault.
Now let’s talk about you
Do you have the right coverage for your vehicle? We’d love to chat with you about it. Call us at 800-516-9242 or speak to a local agent.
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FAQ
The minimum coverage may not be enough to pay for all of your expenses in the event of a claim, so you may want to carry more than the required minimum amount.
Personal injury protection is required for car insurance policies in New Jersey.
