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Being in a car accident can lead to serious injuries that may require treatment, such as physical therapy. You may wonder if your insurance will cover the costs of your recovery. Your auto insurance likely has coverage for personal injury protection that covers some medical expenses, such as physical therapy. However, even with this coverage, an injured driver may have out-of-pocket expenses that are not covered.
Our New Jersey car accident attorney can assist you with evaluating and pursuing your claim against the appropriate insurance policy and minimizing your expenditures. We can also help you evaluate what other options you have if your insurance coverage does not cover all of your expenses.
Personal Injury Protection (PIP) Insurance
New Jersey is a “no-fault” jurisdiction. The term “no-fault” refers to the public policy that regardless of who caused the car accident, an injured person’s car insurance policy will pay up to a certain dollar amount for their medical expenses. As a result, if you are hit by another driver and are seriously injured, the other driver’s auto insurance company will not pay for your medical bills. Instead, your own insurance company would pay based on your PIP coverage.
Because New Jersey has a no-fault system, anyone with auto insurance has some degree of coverage if they are involved in an accident. New Jersey residents can either choose a less expensive PIP policy with lower coverage or a more expensive PIP option with higher coverage.
A basic PIP policy has $5,000 in property damage coverage and $15,000 in personal injury protection per person, per accident. It does not have coverage for bodily injury liability. However, specific serious injuries can be covered for up to $250,000.00. If you have to file a claim with your insurer, you can recover medical expenses and income losses up to the policy’s limits.
If you have the more expensive PIP policy option, you have more coverage. Bodily injury coverage starts at $15,000 per person and $30,000 per accident. It can be as high as $250,000 per person and $500,000 per accident.
What Medical Bills Does PIP Cover?
PIP will cover reasonable medical expenses. PIP can cover in-patient and out-patient services, doctors’ visits, physical therapy, prescriptions, tests, scans, ambulances, and more.
However, you should be aware that there is a deductible you will likely have to pay before your PIP medical coverage kicks in. It can start as low as $250 but can also be up to $2,500. In New Jersey, when purchasing insurance, you can choose to have a higher deductible, so your monthly premium is lower.
In addition, after you meet your deductible, you still have to pay a share of medical expenses. PIP has a co-pay provision, which requires an insured driver to pay 20% of the medical costs, up to a limit, and PIP benefits pay the remaining 80%. This usually applies to the first $5,000 of medical bills. Anything above this is paid at 100% by PIP up to policy limits.
Speak with An Attorney
Dealing with insurance claims can be overwhelming and confusing. If you have been in a car accident, it is crucial to speak with an attorney as soon as possible. We can help you navigate how to deal with insurance companies and understand your rights. You have two years to sue on a claim, with some exceptions. Get in touch with our office today for a free consultation about your case.