Car Accident Compensation in New Jersey | Complete Guide 2026

New Jersey is a no-fault state like Florida and New York, but with a unique twist: when you bought your insurance, you chose between a "basic policy" and a "standard policy." That choice directly affects what you can claim after an accident.

No-Fault with Policy Options

After an accident, you first claim against your own insurance through PIP. But your policy type matters:

Basic Policy: Only $15,000 PIP. Your right to sue for pain and suffering is severely limited — only for permanent injuries or death.
Standard Policy: Up to $250,000 PIP. You choose between "verbal threshold" (can only sue for serious injuries) or "no limitation option" (can sue for any injury).

Check your policy. This changes everything about your case value.

Statute of Limitations

Personal injury: 2 years (N.J.S.A. 2A:14-2)
Property damage: 6 years
Wrongful death: 2 years
Government claims: 90 days for Notice of Claim

Average Settlements

Injury Type	Compensation Range
Soft tissue	$12,000 – $45,000
Moderate	$45,000 – $150,000
Serious	$150,000 – $450,000
Catastrophic	$450,000 – $5,000,000+

Source: NJ jury verdict data; New Jersey State Bar Association.

Insurance Minimums (Standard Policy)

$15,000/$30,000 bodily injury
$5,000 property damage
$15,000 PIP minimum (standard up to $250,000)
UM/UIM required

FAQs

What if I have the basic policy?

You can claim PIP up to $15,000 but suing for pain and suffering is very limited — only permanent injuries or death qualify. Having a lawyer is even more critical.

Can I change my policy option after the accident?

No. The option you had when the accident happened is what applies.

How much does a NJ lawyer cost?

Contingency: 33%-40%. Nothing upfront. No win = no fee.

Updated May 2026. Sources: N.J.S.A. 2A:14-2; N.J.S.A. 39:6A; New Jersey State Bar Association.

Think you have a case?

Free evaluation — no obligation, takes 2 minutes.

Get Started