What to do after a car accident in New Jersey

A crash in New Jersey pulls you into a set of rules that work differently from most states. It is a no-fault state with a twist, its insurance minimums went up on January 1, 2026, and the deadline to sue is shorter than many people expect. Here is what applies in New Jersey specifically, with the statute or agency behind each point.

Your own insurance pays your medical bills first

New Jersey runs on personal injury protection, known as PIP. Under N.J.S.A. 39:6A-4, PIP is mandatory no-fault medical coverage that pays for your reasonable and necessary treatment after a crash regardless of who caused it.¹ You file with your own auto insurer, not the other driver's, and you do it promptly.

How much coverage you have depends on the policy you bought. A Standard policy defaults to $250,000 in medical expense benefits unless you signed for a lower option: $150,000, $75,000, $50,000, or $15,000.¹ A Basic policy carries only the $15,000 minimum. One protection stays constant across every limit. A $250,000 catastrophic benefit applies for brain and spinal cord injuries, permanent disfigurement, and emergency trauma care, even on the lowest medical option.¹

Because PIP pays first, get treated and notify your insurer right away. A gap in treatment and late notice are the two things that most often sink an otherwise valid claim.

The choice that decides whether you can sue for pain and suffering

Here is the part that catches people off guard. When you bought your policy, you picked one of two tort options under N.J.S.A. 39:6A-8, and that choice controls whether you can sue the at-fault driver for pain and suffering.²

If you chose the limitation-on-lawsuit option (the verbal threshold, and the cheaper of the two), you can recover for pain and suffering only if your injury fits one of six categories: death, dismemberment, significant disfigurement or scarring, a displaced fracture, loss of a fetus, or a permanent injury.² Anything less is barred. If you chose the unlimited-right-to-sue option, no threshold applies. Your economic losses, medical bills beyond PIP, and lost wages are recoverable either way.

Find out which box you selected before you assume you can or cannot bring a claim.

Insurance minimums went up on January 1, 2026

If your policy renewed in 2026, your required liability limits changed. Under P.L. 2022, c.87 and Department of Banking and Insurance Bulletin No. 25-06, the minimum for a Standard policy is now $35,000 per person and $70,000 per accident for bodily injury, plus $25,000 for property damage, written 35/70/25.³ That is up from the old 25/50/25. Property damage stayed at $25,000.³ The increase does not reach the Basic policy under N.J.S.A. 39:6A-3.1, which carries lower coverage.³

Uninsured and underinsured motorist coverage matters just as much. On a Standard policy, UM/UIM is required and tracks your liability limits, so most 2026 Standard policies carry it at 35/70.⁴ Basic policies do not include UM/UIM unless you buy it separately.⁴ If the driver who hit you had no insurance or too little, this is the coverage that pays, so it is worth knowing what you have.

Two deadlines, and both are firm

You generally have two years from the date of the crash to file a personal injury lawsuit in New Jersey, under N.J.S.A. 2A:14-2.⁵ Miss it and the claim is gone, with narrow exceptions. An injured minor's two-year clock, for example, does not start until they turn 18.⁵

Property damage runs on a separate track: six years from the date of the damage, under N.J.S.A. 2A:14-1.⁶ That longer window covers the repair and vehicle-value side of your loss, including a diminished value claim.

Fault is shared, up to a point

New Jersey uses modified comparative negligence with a 51% bar, under N.J.S.A. 2A:15-5.1.⁷ If you are found partly at fault, your recovery drops by your percentage of the blame. A 50/50 split still lets you collect half. Cross 51%, and you recover nothing.⁷ That is why the details of how the crash happened carry so much weight in the value of a claim.

Phones, drunk drivers, and when damages climb

New Jersey's handheld ban is primary enforcement, so police can stop you for it alone, under N.J.S.A. 39:4-97.3.⁸ Fines run $200 to $400 for a first offense, $400 to $600 for a second, and $600 to $800 for a third, with three motor vehicle points and a possible 90-day license suspension on that third offense.⁸ A driver who was on the phone is strong evidence of negligence in your claim.

If a drunk driver caused the crash, two things change. New Jersey's dram shop law, the Licensed Alcoholic Beverage Server Fair Liability Act (N.J.S.A. 2A:22A-1 to -7), can reach a bar or restaurant that served a visibly intoxicated patron or a minor who then caused the crash.⁹ Punitive damages also come into play. New Jersey caps them at five times the compensatory award or $350,000, whichever is greater, and requires clear and convincing evidence of malicious or wanton conduct, under N.J.S.A. 2A:15-5.14.¹⁰ There is no cap on ordinary compensatory damages against a private driver.

The vehicle side of your claim

Your car's repair and its lost resale value sit apart from your injury claim and run on the six-year property clock.⁶ New Jersey lets you pursue the drop in your vehicle's market value even after a proper repair. How that claim works in New Jersey is on our New Jersey diminished value page.

You will also want the crash report. The New Jersey State Police sell reports online: $13 for a non-toll roadway report, $5 for a Turnpike or Garden State Parkway report, and $20 for serious or fatal investigation materials.¹¹ Getting yours is covered on our New Jersey crash reports page.

When to get a lawyer involved

If your injuries clear the verbal threshold, if fault is disputed, or if a commercial or drunk driver is involved, the stakes are usually high enough to talk with counsel before you give a recorded statement or accept an offer. You can find New Jersey attorneys through our legal directory.

Treat and notify your PIP insurer immediately, learn which tort option you picked, keep the two-year clock in view, and pull the report. Those four moves protect almost every New Jersey claim.

This is general information, not legal advice.

Sources

1. N.J.S.A. 39:6A-4, Personal Injury Protection Coverage. https://law.justia.com/codes/new-jersey/title-39/section-39-6a-4/

2. New Jersey Courts, Model Civil Jury Charge 5.33, Limitation on Lawsuit Option (N.J.S.A. 39:6A-8). https://www.njcourts.gov/sites/default/files/charges/5.33.pdf

3. New Jersey Department of Banking and Insurance, Bulletin No. 25-06, Auto Insurance Coverage Limits (P.L. 2022, c.87). https://www.nj.gov/dobi/bulletins/blt25_06.pdf

4. New Jersey Department of Banking and Insurance, Uninsured/Underinsured Motorist Coverage. https://www.nj.gov/dobi/autoplanner/frmuninsandundinschoice.htm

5. New Jersey Courts, Statute of Limitations FAQ (N.J.S.A. 2A:14-2). https://www.njcourts.gov/faq/what-statute-of-limitations-claim-my-case

6. N.J.S.A. 2A:14-1. https://law.justia.com/codes/new-jersey/title-2a/section-2a-14-1/

7. New Jersey Courts, Model Civil Jury Charge 7.30, Comparative Negligence (N.J.S.A. 2A:15-5.1). https://www.njcourts.gov/sites/default/files/charges/7.30.pdf

8. New Jersey Office of the Attorney General, Division of Highway Traffic Safety, Distracted Driving (N.J.S.A. 39:4-97.3). https://www.njoag.gov/about/divisions-and-offices/division-of-highway-traffic-safety-home/division-of-highway-traffic-safety-distracted-driving/

9. New Jersey Courts, Model Civil Jury Charge 5.71, Tavern Keepers (N.J.S.A. 2A:22A-1 to -7). https://www.njcourts.gov/sites/default/files/charges/5.71.doc

10. New Jersey Courts, Model Civil Jury Charge 8.60, Punitive Damages (N.J.S.A. 2A:15-5.14). https://www.njcourts.gov/sites/default/files/charges/8.60.pdf

11. New Jersey State Police, Crash Report Requests. https://www.njportal.com/njsp/crashreports/