Unique Factors That Determine New Jersey Auto Accident Claims

Auto accident laws vary by state. These laws determine whether you can sue for auto accident damages, how you process your claim, and the available damages. Thus, two comparable accidents in different states can trigger vastly different claim processes. Understanding the applicable auto accident laws can help you process your claim.

Read on to learn about two critical issues that can affect your auto accident claim in New Jersey.

1. Your Insurance Coverage

New Jersey has two broad categories of auto insurance policies. The policy you purchase affects your auto accident claim if you are involved in an auto accident.

Basic Policy

Property damage liability and personal injury protection (PIP) are mandatory and automatically included in the basic policy. Other forms of coverage are optional with the policy.

You file a claim with your own insurance company in case of an accident. For example, you don't have to prove liability since the basic policy is a no-fault insurance policy. That means you will likely get your compensation faster than you would if you filed a third-party accident claim against the liable party.

Note that the basic policy does not include all the damages you might suffer in an auto accident. For example, it doesn't include pain and suffering damages. However, you deserve the right to file a third-party claim under certain conditions. For example, you can field a third-party claim if you lose a body part or suffer a permanent injury.

Standard Policy

The standard policy is the conventional policy that motorists in fault states carry. The policy includes:

• Bodily injury liability
• Property damage liability
• PIP
• Underinsured/Uninsured motorist coverage

Again, you may purchase other optional forms of coverage. With the standard policy, you choose between unlimited rights to sue and limited rights to sue.

Unlimited rights to sue means you can sue for auto accident damages whenever you wish. Limited rights to sue means you file a first-party claim in case of an accident and can only file a third-party claim under certain conditions, such as losing a body part.

2. Your Contribution to the Accident

From the above overview, we can see that your insurance policy and injuries determine whether you can sue for auto accident damages. However, another law determines whether you can collect the damages – the modified comparative fault.

Modified comparative fault rule applies when you are partially liable for the accident. Using this rule, the court reduces your damages proportionally to your contribution to the accident. Moreover, you do not receive any compensation if the court determines that your contribution to the accident exceeds 50%.

The following two examples illustrate the application of the modified comparative fault rule.

In the first example, you calculate your damages to $200,000 after a crash. Since you have a standard policy, you file a third-party claim, and the court determines that your driving distraction contributed 10% to the accident. The court will award you $180,000, which is $200,000 less its 10%.

In the second example, you suffer damages worth $200,000 but have a basic policy. You decide to file a third-party claim because you lost a limb in the accident, and the loss of body part triggers your right to sue. However, the court determines that your faulty brakes contributed 60% to the crash and awards you nothing.

As you can see, auto accident claims in New Jersey can be complicated. Remember to preserve evidence as much as possible even before deciding whether to file a third-party claim. The evidence may help you if your injuries worsen or the other driver sues you. Contact Borbi, Clancy & Patrizi, LLC to evaluate your claim help you pursue damages.