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Who Pays My Bills After a Car Accident in New Jersey?

Posted on: September 6, 2023

One of the most important things to know after being injured in a car accident is who will pay the bills for medical care and property damage. Attending to serious injuries comes first, but it is natural to worry about the expenses once the healing begins. How does this work in New Jersey?

What Is PIP Coverage?

New Jersey drivers and passengers injured in motor vehicle accidents have their bills paid by their car insurance providers. No matter who is at fault, the injured driver files a claim with their insurer. This is also known as PIP coverage. So, no matter who caused your car accident, it goes through your insurance and can cover medical expenses and lost wages if you cannot work.

This coverage can extend to injured passengers, even if they do not own a vehicle or have auto insurance. They are still entitled to PIP coverage for their medical expenses through the policy of the car they were in or the policy of someone they live with.

How Much Will My PIP Coverage Pay?

In New Jersey, the minimum number of PIP drivers must have is $15,000. It can be as high as $250,000, but it is less common for policyholders to purchase that amount of coverage. However, the lower amount is often insufficient to cover an injured person’s medical expenses and lost wages.

Much of the time, standard health insurance policies overlap with PIP coverage. You can list the health care insurer as the main source of medical coverage if you choose to do so, and it might reduce your annual PIP premium.

Can I Sue the At-Fault Driver?

Remember that PIP benefits have deductibles that policy owners must pay before they can get help. This can even insult injury when you struggle to pay accident-related medical expenses. You can sue other drivers in New Jersey if you have chosen the full tort or unlimited right-to-sue option with your PIP insurance.

This rule has some exceptions when people have permanent and severe injuries. It is also essential to know that these PIP options can increase premiums and that going to court can be costly. A limited tort option keeps insurance prices lower but might put you at a disadvantage after a crash.

Contact a Freehold Car Accident Lawyer at Ellis Law if You Are Struggling to Pay Expenses After a Car Accident

Understanding insurance coverage can be difficult. Contact a knowledgeable Freehold car accident lawyer at Ellis Law for a free consultation. Call 732-308-0200 or complete our online form to schedule a free consultation. Located in Freehold, New Jersey, we serve clients in Asbury Park, East Brunswick, Toms River, Middletown, Jersey City, Long Branch, Neptune, Hudson County, Union County, Essex County, Monmouth County, Marlboro, and Ocean County, as well as Brooklyn and New York City.

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