NJ AICRA Lawyers

Practical Steps After a Car Accident in New Jersey

1. Seek medical attention immediately and retain all diagnostic records that document the nature and extent of your injuries.
2. Report the accident to your insurance company and open a PIP claim.
3. Follow AICRA’s treatment review rules and attend any required independent medical exams.
4. Keep copies of bills, medical reports, and Explanation of Benefits forms.
5. Contact an attorney early to review your tort option, PIP limits, and UM/UIM coverage to preserve all available rights.

Liability and Defenses in New Jersey Car Accident Claims

• Causation Disputes: Insurers often argue that injuries were pre-existing rather than accident-related.
• Medical Necessity Challenges: Insurers may deny PIP payments by claiming treatment is not medically necessary under AICRA protocols.
• Threshold Defenses: under the Limitation on Lawsuit option, insurers can argue your injury does not meet any qualifying category or lacks objective proof.

Damages and Recoverable Losses in New Jersey

• Economic Losses:
  • Medical expenses are paid first through PIP coverage, up to your selected limit.
  • Wage loss and essential services are included but depend on policy terms.
  • If your medical costs exceed your PIP limit and your injury does not pierce the threshold, you cannot sue for the unpaid balance under Haines.
• Non-Economic Losses:
  • With the Zero Threshold option, you can seek compensation for pain and suffering in all qualifying accidents.
  • Under the Limitation option, non-economic damages are available only when a statutory injury category is met and certified by a physician.
• Uninsured and Underinsured Motorist Claims (UM/UIM):
  • UM/UIM protection enables recovery when the at-fault driver has no insurance or insufficient coverage limits.
  • These benefits are generally available only under the Standard policy.

Dispute Resolution and Deadlines in New Jersey

• Claims must be reported promptly to the insurer to activate PIP coverage.
• In Limitation on Lawsuit cases, the physician certification must be filed within 60 days after the defendant’s answer.
• Many PIP benefit disputes are resolved through AICRA arbitration; this process is faster and less formal than a court proceeding.
• Fraud Claims Exception: The 2025 Carteret decision clarified that fraud-based disputes involving PIP benefits are not subject to AICRA arbitration and must instead be handled in court.

Out-of-State Drivers and the Deemer Statute in New Jersey

When an out-of-state driver is insured by a company authorized to write policies in New Jersey, their policy is automatically treated as New Jersey-compliant for accidents that occur in the state. This “deemer” rule means that PIP and threshold restrictions apply even to non-residents involved in New Jersey crashes.

Proposed Auto Insurance Legislation in New Jersey (2025 Watch)

Assembly Bill 5254, known as the Car Insurance Reduction Act, was introduced in early 2025. It aims to adjust carrier rate reporting and underwriting transparency. The bill has not been enacted, but it signals potential future changes to AICRA