Auto accidents can be confusing and stressful, especially when you’re driving someone else’s vehicle. In New Jersey, which follows a no-fault insurance system, the way your medical bills and damages are covered depends on various factors, including whether you own a car and have your own auto insurance policy. Below, we break down two common scenarios that may arise when you’re involved in an accident while driving a friend’s car.
Scenario 1: You Own a Vehicle and Have Your Own Auto Insurance Policy
If you own a vehicle and have your own auto insurance policy, the situation becomes relatively straightforward when it comes to Personal Injury Protection (PIP) and liability coverage.
How Medical Bills Are Covered
Since New Jersey follows a no-fault system, your own PIP coverage will be the primary source for covering your medical expenses, even though you were driving your friend’s vehicle at the time of the accident. PIP follows the person, not the vehicle, meaning that your insurance will cover your medical costs before any other policies come into play.
Property Damage
If the accident was entirely the other driver’s fault, their liability insurance will cover the damages to your friend’s vehicle. The at-fault driver’s property damage liability coverage will handle the cost of repairs or replacement of the vehicle, up to the limits of their policy. If the damages exceed their policy limits, your friend’s collision coverage (if available) may step in.
Compensation for Pain and Suffering
In cases of serious injuries that meet New Jersey’s threshold for permanent injuries, you may pursue compensation for pain and suffering through the at-fault driver’s bodily injury liability insurance. This would include claims for non-economic damages such as emotional distress or long-term physical impairment.
Scenario 2: You Don’t Own a Vehicle But Have a Driver’s License
If you don’t own a vehicle and therefore don’t have auto insurance, your friend’s PIP coverage will be the primary source for covering your medical expenses in the event of an accident while driving their car.
How Medical Bills Are Covered
In this case, your friend’s PIP policy will apply to cover your medical costs. Since you don’t have a PIP policy of your own, the vehicle owner’s insurance will provide coverage for your injuries, including medical bills, rehabilitation costs, and lost wages, if applicable. PIP generally covers medical expenses up to the policy limit, which can range depending on the coverage chosen by the vehicle owner.
Property Damage
As in the first scenario, the at-fault driver’s liability insurance will cover the costs of repairs to your friend’s vehicle. Since the other driver is fully responsible for the accident, they are required to compensate for property damage up to their policy limits.
Compensation for Pain and Suffering
If your injuries are severe and meet New Jersey’s standard for permanent injury, you can still file a claim against the at-fault driver’s bodily injury liability insurance for pain and suffering, as well as other non-economic damages.
Understanding PIP and Liability in New Jersey
The key point to remember is that in New Jersey, PIP coverage follows the person. This means that if you have your own auto insurance, your personal PIP policy will always cover your medical expenses first, even when driving someone else’s car. On the other hand, if you don’t have a PIP policy, the vehicle owner’s PIP will cover your medical bills. In both scenarios, property damage liability is handled by the at-fault driver’s insurance.
Conclusion
If you’re involved in a car accident while driving a friend’s vehicle in New Jersey, how your medical expenses and property damage are covered will depend on whether you have your own auto insurance or are relying on the vehicle owner’s coverage. Understanding your insurance options in these two scenarios is crucial to ensuring you receive the compensation you deserve. If you find yourself in this situation, consulting with a personal injury attorney is highly recommended to help navigate the complexities of insurance and liability claims.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. For specific legal assistance, please contact Song Law Firm at 201-461-0031 or via email at pi@songlawfirm.com.