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When you’re injured in a car accident, the first question on your mind is often how your medical bills will be covered. In New Jersey, part of the answer lies in something called bodily injury liability coverage—a required component of most auto insurance policies. But what are the minimums? And what do they mean for injured drivers and passengers?
Let’s break down the basics of New Jersey’s bodily injury requirements—and what they mean for your rights after a crash.
What Is Bodily Injury Liability Insurance?
Bodily injury liability insurance pays for injuries you cause to someone else in a car accident. It covers costs such as:
- Emergency medical treatment
- Hospital stays
- Surgery and rehabilitation
- Pain and suffering
- Lost wages
- Legal fees if you are sued
This insurance does not cover your injuries. Instead, it protects you from financial liability if you cause harm to others.
New Jersey’s Minimum Bodily Injury Coverage
New Jersey is one of only a few states that offers drivers two main types of auto insurance policies: Basic and Standard. The level of bodily injury coverage depends on which policy you choose.
1. Basic Policy Minimums
- Bodily injury liability coverage is optional under a basic policy.
- If selected, coverage starts at:
- $10,000 per accident (total for all injured parties)
This option provides minimal protection and may leave you exposed if you’re sued after causing serious injuries.
2. Standard Policy Minimums
- Bodily injury liability coverage is mandatory
- Minimum limits are:
- $25,000 per person
- $50,000 per accident (for multiple people injured in the same incident)
Drivers can—and often should—purchase higher limits to better protect themselves and others in the event of a serious crash.
Why the Minimums Often Aren’t Enough
While $25,000 or $50,000 may sound like a lot, it can disappear quickly after a serious injury. A single trip to the ER, surgery, or extended hospital stay can exceed the minimum coverage limits. If you’re injured by a driver with only the minimum required coverage—or worse, a Basic Policy with none at all—you may be left struggling to cover your losses.
This is why many New Jersey drivers also carry uninsured/underinsured motorist (UM/UIM) coverage, which can help cover your injuries if the at-fault driver doesn’t have adequate insurance.
How Bodily Injury Coverage Impacts a Personal Injury Claim
If you’re hurt in a crash caused by another driver, their bodily injury coverage is typically the first source of compensation. You can file a claim against their policy for damages related to your injuries.
However, if your medical expenses and losses exceed their policy limits, you have a few options:
- Use your own UM/UIM coverage (if you have it)
- Sue the at-fault driver personally for the excess amount
- Explore other responsible parties, such as a commercial vehicle owner or employer
That’s why working with a skilled personal injury lawyer is crucial. A knowledgeable attorney can help identify all available insurance coverage, file the necessary claims, and fight for the full compensation you deserve.
No-Fault Rules Still Apply
New Jersey is a no-fault insurance state, which means your personal injury protection (PIP) coverage pays for your medical bills—regardless of who caused the crash. PIP coverage is part of every policy and typically covers:
- Medical treatment
- Lost wages (in some cases)
- Essential services (like home help if you’re injured)
Even with PIP, you may still have grounds to file a claim against the at-fault driver if your injuries are serious, permanent, or exceed certain thresholds. This is where bodily injury liability coverage becomes relevant.
What to Do After an Accident in New Jersey
If you’ve been involved in a crash, take these steps to protect your health and your right to compensation:
- Get medical attention immediately, even if you feel okay at first.
- Report the accident to the police and request a copy of the report.
- Exchange insurance information with the other driver.
- Notify your insurance company, but be careful not to admit fault or accept blame.
- Consult a personal injury attorney before speaking to the other driver’s insurer.
Let Nagel Rice LLP Help You Navigate the Claims Process
At Nagel Rice, we’ve helped countless New Jersey residents recover compensation after serious car accidents. Our legal team knows how to deal with insurance companies that try to limit payouts—and we don’t back down when your future is on the line.
Whether you’re facing steep medical bills or dealing with an underinsured driver, we’ll fight to protect your rights and secure the compensation you deserve. Call today for a free consultation.