Understanding New Jersey’s “No-Fault” Insurance System

In New Jersey, the law follows a “no-fault” insurance model. This means that your own auto insurance provider pays for your medical treatment after a car accident, regardless of who caused the accident.

This coverage is known as Personal Injury Protection (PIP), and it applies to:

You, as the driver
Any passengers in your vehicle
Pedestrians or cyclists involved in the accident (in some cases)

What Does PIP Cover?

PIP generally covers:

Hospital and surgical expenses
Doctor visits
Prescription medications
Rehabilitation services
Diagnostic testing
In some cases, lost wages and essential services (like household help)

However, coverage limits vary based on the policy you selected — and insurance companies don’t always make the process easy.

When PIP Isn’t Enough: What Happens Next?

In many car accidents, especially serious ones, PIP coverage might not be enough to pay for all your medical expenses.

Here’s what happens next:

1. Health Insurance Kicks In

Once your PIP coverage is exhausted, your personal health insurance can help pay for the remaining medical bills. Keep in mind, however, that:

You may have to pay deductibles or copays
Some health plans may seek reimbursement if you recover money through a personal injury lawsuit

2. You Can Pursue the At-Fault Driver

If your injuries are serious enough — such as broken bones, disfigurement, permanent injuries, or death — New Jersey law allows you to file a personal injury claim against the at-fault driver. Through this claim, you can seek compensation for:

Medical bills not covered by PIP
Future medical costs
Pain and suffering
Lost income
Emotional distress

At The Law Offices of Raffi T. Khorozian, we’re skilled at handling these types of claims and ensuring our clients get the compensation they truly deserve.

What If You Were a Passenger or Pedestrian?

Even if you weren’t driving, you still have options:

Passengers typically use the insurance of the driver they were riding with.
Pedestrians and cyclists may also qualify for PIP benefits from their own auto insurance, or from the driver’s policy that struck them.

If no coverage is available, the New Jersey Property-Liability Insurance Guaranty Association (NJPLIGA) may provide limited medical benefits.

Out-of-State Accidents: Different Rules May Apply

If you’re a New Jersey resident involved in a car accident outside of New Jersey, your PIP benefits can still apply, but other rules may come into play depending on the state where the accident occurred.

Likewise, if you were injured in New Jersey but live in New York or another state, your state’s laws may impact your options.

This is where working with an experienced firm like The Law Offices of Raffi T. Khorozian becomes incredibly important. We handle cases across both New Jersey and New York, and we understand how to apply multi-state laws to your benefit.

What About Medical Liens?

In some situations, hospitals or insurance companies may place a lien on any future settlement or court award. This means they will seek to be repaid out of any compensation you receive.

It’s critical to have an attorney negotiate these liens so they don’t take a huge chunk out of your recovery. Our legal team handles this process so you can focus on healing — not paperwork.

Steps to Protect Yourself After an Accident

Here’s what you should do to protect your right to compensation:

Seek medical attention immediately – Even if you feel fine, injuries can appear later.

Notify your insurance company – File a claim to activate PIP benefits.

Keep copies of all medical records and bills – These are crucial for any claim.

Speak to a personal injury lawyer – Don’t wait. The sooner we can start gathering evidence, the stronger your case will be.

Why Choose The Law Offices of Raffi T. Khorozian?

With decades of combined legal experience, our team is known for being aggressive advocates for car accident victims. We’ve recovered millions for clients in both New Jersey and New York and have built a reputation on trust, compassion, and results.

When you work with us, we:

Handle your paperwork and insurance communication
Fight for full compensation
Help you access the right medical care
Keep you informed every step of the way

Need Help With Medical Bills After an Accident?

You don’t have to face this alone. Let us help you understand your rights and take control of your situation. At The Law Offices of Raffi T. Khorozian, we’re here to fight for you — so you can focus on your recovery.

Call us today at (888) NJ-VICTIM / (888) 658-4284 to schedule a free consultation.

Visit us online at 👉 https://lawyercaraccidentnynj.com

Online Sources: