How does no-fault insurance work in New Jersey?

Motor vehicle accidents remain a leading cause of serious injury in New Jersey and across the globe. In fact, according to statistics from the Association for Safe International Road Travel, approximately 4.4 million Americans annually suffer serious enough injuries in car accidents to require medical treatment.

Diagnosing, treating and living with a catastrophic injury can be unbelievably expensive. Fortunately, you may be able to pursue a financial settlement from your insurance company to help you pay mounting medical bills. Still, you should know how no-fault insurance works in the Garden State.

What is no-fault automotive insurance?

Along with 11 other states, New Jersey has a no-fault automotive insurance law. In simple terms, this law means each injured person’s insurance provider covers his or her damages, regardless of who is to blame for the accident.

Why does New Jersey take a no-fault approach?

No-fault insurance laws should streamline compensation for injured car accident victims. That is, rather than having to go through a protracted investigation to determine fault, an injured person simply works with his or her insurance provider to reach a fair settlement.

How may no-fault laws hurt you?

Even though your insurance company is happy to collect monthly premiums from you, an adjuster may be stingy when processing your claim. After all, most insurers prioritize profits over the needs of their customers. Because your insurer probably wants to make money, you may receive a low settlement offer or an outright claim denial.

By paying premiums for coverage, you have lived up to your end of the bargain. Ultimately, if your insurer does not promptly process your claim and pay you what you deserve, you may have some legal options for securing financial compensation.

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