New Jersey Automobile Insurance News

New Jersey PIP

What is New Jersey personal injury protection (New Jersey PIP) coverage?

The New Jersey No Fault Act requires your automobile insurance policy to include PIP coverage for you or any resident family member who is injured in any automobile accident. In addition, PIP coverage is provided to any person who drives your car with your permission, to any passenger in your car and to any pedestrian struck by your car.


Does New Jersey PIP coverage provide for the payment of medical bills?

Yes. If you purchase a standard policy, your insurance company is required to pay reasonable and necessary medical expenses up to $250,000 per person per accident; however, you may elect lower limits of medical expense benefits in the amounts of $15,000; $50,000; $75,000 or $150,000. If you select a basic policy, your medical expense benefits will be limited to $15,000.


Are the medical expense benefits provided by New Jersey PIP coverage subject to any deductibles or copayments?

Yes. The payment of medical bills is subject to a statutory deductible of $250 and a copayment of 20 percent up to $5,000 per person per accident. This means that you may be required to pay $1,200 of the first $5,000 of medical expenses. In addition, you may elect higher deductibles in the amounts of $500, $1,000, $2,000 and $2,500. If so, you will be required to pay more of your own medical bills.


Does New Jersey PIP coverage provide any other benefits?

Yes. If you purchase a standard policy, you will receive “additional” PIP benefits including an income continuation benefit of $100 a week for 52 weeks; essential family or household services of $12 a day for 365 days; a death benefit; and funeral expenses of $1,000. You may purchase additional income continuation benefits up to $700 a week for two years or as long as the disability persists; essential services of $20 a day for two years; funeral expenses of $2000; and an additional death benefit of $10,000. On the other hand, you may choose to exclude all “additional” New Jersey PIP benefits. If you select a basic policy, you will not receive any “additional” New Jersey PIP benefits.

Courtesy of the N.J. State Bar Foundation

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