Only a handful of American states have no-fault auto insurance laws, and New Jersey is one of them. It means you can recover compensation for injuries and property damage regardless of who caused the accident.
As you might expect, no-fault insurance offers crash victims many advantages. Don’t get too excited, though. The insurance model also has a few downsides to consider.
A top benefit of no-fault insurance is getting your payouts quickly. These claims typically take less time to process because fault doesn’t matter. Other advantages include:
- Little wait time for medical coverage claims
- May cover other crash-related expenses (household services, childcare, etc.)
- Potentially much less hassle and stress for the injured
The no-fault system lowers costs for insurance companies, enabling them to (theoretically) pass the savings to consumers, another possible benefit.
Of course, the no-fault model is not 100% perfect. The biggest disadvantage is that it blocks you from filing a lawsuit unless you suffered permanent injuries in the accident. Another downside is you will likely pay higher premiums with no-fault coverage.
Further, drivers that cause accidents typically face fewer insurance penalties than those in at-fault states. If one of your concerns is punishing a negligent driver, the no-fault system may disappoint you.
You get to choose
In New Jersey, you have the right to opt-out of no-fault insurance and purchase an at-fault policy. In exchange for fast payouts, you would have the unlimited right to file an injury lawsuit against the driver that harmed you.
Regardless of your insurance coverage, consider learning more about injury and accident laws in our state. If your accident caused permanent injuries or disabilities, you don’t want to miss any chance to maximize your compensation.