When you’re involved in a car accident as a passenger in New Jersey, it’s essential to know how your medical bills will be covered. New Jersey follows a No-Fault Insurance System, which determines how medical expenses are handled based on whether you have your own auto insurance and the details of the accident. Below, we break down common scenarios and how coverage is typically managed for passengers.
- If You Have Your Own Auto Insurance
If you hold your own auto insurance policy, your Personal Injury Protection (PIP) benefits serve as the primary coverage for medical expenses, regardless of who was at fault for the accident. Your policy’s PIP limit will be used to cover various expenses, including:
- Visits to doctors and hospitals
- Surgical procedures and other medical treatments
- Rehabilitation and physical therapy
- Partial compensation for lost wages due to the injury
However, if your medical bills exceed the limit of your PIP coverage, you won’t receive additional PIP benefits from the driver’s insurance policy. Instead, you may seek compensation from the Bodily Injury Liability (BI) insurance of the at-fault driver. Should the BI limits be insufficient, you can turn to your own Underinsured Motorist (UIM) coverage, provided you have it. Recovery from these sources is limited to the higher of either the at-fault driver’s BI coverage or your own UIM limit.
- If You Do Not Have Auto Insurance
For passengers who don’t own a vehicle or have their own auto insurance, the PIP coverage of the vehicle in which they were riding becomes the primary source for covering medical costs. This means the owner’s PIP policy will handle the medical expenses up to the policy’s limit. Once this limit is exhausted, you may seek additional compensation from the at-fault driver’s BI coverage. If the BI coverage is inadequate to cover the full extent of your injuries, you might be able to access the UIM coverage from the vehicle owner’s policy to pursue further compensation.
- When Medical Expenses Exceed PIP Limits
If your medical expenses exceed the PIP coverage available, many healthcare providers may allow treatment under a Letter of Protection (LOP). An LOP is an agreement stating that medical bills will be paid from the proceeds of any future settlement or judgment, allowing you to receive necessary treatment without needing immediate payment. This arrangement can be particularly helpful as you work through the process of a personal injury claim, ensuring you get the care you need without financial stress while awaiting compensation.
- Compensation for Pain and Suffering
In cases where your injuries are severe enough to meet New Jersey’s criteria for serious injury (such as permanent injuries or significant scarring), you may pursue compensation for pain and suffering. This compensation comes from the at-fault driver’s BI coverage. If the BI coverage isn’t sufficient, you may also be able to draw upon your UIM coverage, if you have it, up to the limits of your policy.
- Protecting Your Rights as a Passenger
After an accident, it’s important to take steps to protect your rights and strengthen your case:
- Gather Evidence: Take photos of the accident scene and record witness information if possible.
- Keep Medical Records: Retain all medical records, bills, and other documentation related to your treatment.
- Consult a Personal Injury Attorney: An attorney can guide you through the insurance claims process, ensuring you understand your rights and potential compensation options.
Conclusion
In New Jersey, the way your medical bills are covered as a passenger depends on whether you have your own auto insurance policy and on the limits of the involved insurance policies. Knowing the roles of PIP, BI, and UIM coverage can help you understand how to handle medical expenses and pursue additional compensation if needed. Working with a personal injury attorney can ensure you navigate these complexities effectively and receive the compensation you deserve.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. If you are involved in a personal injury case and need specific guidance, please contact Song Law Firm at 201-461-0031 or via email at pi@songlawfirm.com.
