Auto Accident Laws Of New Jersey: Here’s What You Need To Know

• New Jersey follows a no-fault car insurance system, for which a personal injury protection (PIP) clause is mandatory.
• The parties involved in a car accident must immediately dial 911 for further assistance or report to the New Jersey State Police within 10 days of the accident.  
• Besides PIP, the auto insurance in New Jersey also includes mandatory liability coverage against damages to property.
• A law called ‘statute of limitations’ gives you a timeframe to exercise your right to file a lawsuit against the person at fault.
• While the fines for driving without valid auto insurance start at $300-$1,000, there is a fine of $30-$100 if the accident is not reported to police or legal authorities.

While accidents can be inevitable, curbing their after-effects is in our hands with valid auto insurance. With accidents becoming a common phenomenon in New Jersey, comprehensive car insurance can help you minimize their risks and losses. In addition, there are some New Jersey auto accident laws in handling the consequences and situations properly.

The New Jersey Motor Vehicle Department has laws to counter auto accidents, most of which revolve around the state’s no-fault car insurance policy and the supporting clauses. So, if you are a resident of New Jersey, these are all things you should about which you should be aware:

What Is A ‘No-Fault Car Insurance State’?

New Jersey is one of the twelve states in the US that follows a no-fault car insurance system, for which a personal injury protection (PIP) clause in the insurance is mandatory.

• In a no-fault car insurance policy, irrespective of who was at fault for the accident, your car insurance provider will pay for all the medical expenses and losses covered in the accident.
• Both parties involved in an accident can file their claims to their respective insurance providers and seek compensation for the financial expenses of the accident.
• As the name suggests, in the case of a no-fault car insurance policy, there is no need to prove the fault of a party in an accident.
• For this policy, personal injury protection (PIP) is necessary, without which one can’t claim compensation for injuries.
• PIP doesn’t include coverages against non-economic damages, such as mental distress and suffering caused in the accident, for which one can file a claim against the party at fault in the accident.
• PIP also doesn’t include the claims for vehicle damages – for that, one has to purchase a separate third-party insurance clause to claim against damages caused to the vehicle.

What To Do After A Car Accident In New Jersey?

No matter the  magnitude of the accident, if there are financial damages and injuries caused by the accident, here are some steps one needs to take after the mishap:

• In case there are injuries to any person involved, no matter how minor they are, seek medical assistance as soon as possible. There is nothing more important than the life of an individual.
• Report the accident to the local police, as its copy will be beneficial while claiming the damages and medical expenses.
• Report the accident to your vehicle insurance provider as soon as possible, which will help you initiate the process of taking claims.
• Document the accident scene by taking relevant pictures and videos of the damages caused to the vehicles.
• If possible, collect the information of the witnesses (if any) present at the time and place of the accident, which can be beneficial in the event of any complex legal processes post the accident.

Reporting Formalities To Authorities

According to New Jersey law, the parties involved in a car accident must report to the New Jersey State Police within 10 days of the accident. The report should mention the details of the persons and vehicles involved and property damages (if any).

During this duration, the parties must submit a report to the New Jersey Motor Vehicle Commission. However, if a law enforcement officer prepares a police report after arriving at the scene, there is no need for the parties involved in the accident to submit the report by themselves. In this case, the law enforcement officers must submit their report to the Motor Vehicle Commission within five days of the investigation.

Reporting Formalities In Case Of A Serious Injury

If an individual is injured seriously in an accident, the report might not be submitted to the police or Motor Vehicle Commission by the individual due to a medical emergency. In such an event, according to New Jersey law, the vehicle owner or any other person involved in the accident has to report the accident to the police.

However, in such a case, the best option is to call 911 for immediate legal and medical assistance. In this case, police officers and emergency medical services, and if needed – firefighters will arrive at the scene for further assistance. One of the police officers will prepare a report of the accident after investigation and submit it to the Motor Vehicle Commission. However, if 911 isn’t informed and one of the drivers is seriously injured, any other passenger or owner of the vehicle has to report the authorities.

Mandatory Coverages In an Auto Insurance In New Jersey

As per the norms stated by the New Jersey Motor Vehicle Commission, auto insurance in the state includes the following coverages, which one has to purchase before registering a vehicle:

• Personal Injury Protection – This clause covers the medical expenses against the injuries caused to the driver or occupants in the vehicle insured, irrespective of who was at fault in the accident. A minimum PIP of $15,000 is essential for motor vehicle insurance in New Jersey.
• Liability coverage – This clause covers the damages caused to other people or property in an accident if you are at fault. Since New Jersey is a no-fault insurance state, only the property damage coverage is present in this clause, which is worth a minimum of $5,000. However, one can buy bodily injury liability for an added premium of a minimum of $15,000 per person.
• Uninsured Motorist Insurance – This clause covers the medical and damage expenses if you are involved in an accident with another motorist driving or riding a vehicle without proper insurance coverage.

In New Jersey, these three coverages are mandatory in motor vehicle insurance, with the minimum amounts specified in their respective sections. However, one has the option to increase the coverage amounts. While the Basic Policy includes personal injury protection and property damage liability, the Standard Policy has these two coverages and an additional bodily injury liability.

Car Insurance Coverages In New Jersey

A New Jersey no-fault car insurance policy benefits the following people in the event of an accident:

• The policyholder
• The family members of the policyholder
• The person driving the vehicle with the permission of the policyholder
• Passengers in the vehicle of the holder

Besides individuals, the no-fault car insurance policy also offers the following protection and coverages:

• All expenses of medical treatments and equipment for treating injuries (covered in both basic and standard policies)
• Reimbursement of income or daily wage lost due to injuries caused (covered only in standard policy)
• Payment against the inability to perform daily chores and household work (covered only in the standard policy)
• Coverage against death and funeral costs if a person succumbs to injuries caused in the accident

Rights To Sue In Case Of An Auto Accident In New Jersey

Besides the additional benefit of bodily injury liability, a standard policy in New Jersey also has the options of “limited” and “unlimited” rights to sue as add-ons in the insurance, the details of which are as follows:

Limited rights to sue

• In these rights, if a person sustains serious degree injuries, such as bone fractures, loss of a body part, a permanent disfiguration of a body part, or even death, the person or the family members of the person have the right to pursue legal action against the person at fault in the accident.
• This particular clause is over and above the PIP coverage of the no-fault car insurance in New Jersey.

Unlimited rights to sue

• There is no degree of injury or damage to exercise unlimited rights to sue in an accident, which allows the injured person to recover pain and suffering damages.
• To exercise unlimited rights to sue, the injured person has to prove the fault of the third person in the accident while also costing more money. 

Statute Of Limitations

For obtaining claims against injuries legally, there is a law called ‘statute of limitations’ that gives you a timeframe to exercise your right to file a lawsuit against the person at fault in an accident.

• If there is no proper result after negotiation between the parties involved in an accident, one has the right to file a lawsuit within two years from the date of the accident.
• It is better to act quickly in such instances, as post the deadline, the New Jersey court system dismisses the case while the auto insurance claims are delayed.
• Besides consulting with an attorney, applicants can also file the claim themselves in court, but with utmost precaution and preparation.

Modified Comparative Fault Rule

There are instances when both parties involved in an accident are partially faulty, and this is where the modified comparative fault rule of New Jersey comes into effect.

• After an accident, if the matters reach court, the authorities analyze two aspects – the percentage of faults of both the parties involved in the accident and the damages claimed by the plaintiff.
• Under the modified comparative fault rule, if both parties involved are found faulty, the plaintiff’s share in the fault of the accident determines the percentage of the total compensation that will be awarded to the plaintiff.
• For example, if the plaintiff’s share in the fault in the accident is 30 percent and the total damages claimed are $100,000, including all the possible expenses and damages, the plaintiff will get $70,000.
• If the plaintiff is responsible for more than 50 percent of the fault for the accident, the plaintiff will not get any compensation.
• In such a case, the verdict based on this rule will also guide the car insurance provider in adjusting the claims and final settlement.

Penalties For Driving A Car Without Insurance In New Jersey

New Jersey police consider driving without valid auto insurance a serious offense, which will attract hefty penalties and even steep punishments. Usually, police ask for proof of insurance at the accident scene or during any random check post, and if the parties fail to present the insurance copy, here are the imposable fines:

• A fine between $300 and $1,000 in the first offense. This fine can go up to $5,000 or even assessment for three years in subsequent offenses.
• The driving license can be suspended for a full year in case of first offense, which can go up to two years, with reinstatement up to the chief administrator of MVD.
• A community service, the length of which is determined by the court in case of first offense, can stretch to 30 days in case of subsequent offense.
• In more serious cases, even the vehicle might get impounded, or the party can be jailed for up to 14 days, in addition to towing and storage fees and a $100 administrative fee to retrieve the car from impoundment.
• If the parties also fail to report the accident to police or legal authorities, they are subjected to a fine between $30 and $100, and in some cases, even cancelation of driving license or vehicle registration.

Conclusion

Now that we have charted every possible information one should know about New Jersey auto accident laws, you have a basic idea about what things you should do after a car accident. However, even after all this, we recommend seeking the advice or assistance of an experienced legal professional to assist you further if the consequences are out of your hands after an accident.

Also Read: Child Seat Laws in New Jersey Explained