Limitation on Lawsuit Threshold Law

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NEW JERSEY AUTOMOBILE INSURANCE LAWS HAVE CHANGED
PROTECT YOURSELF NOW.       

As of March 22, 1999,  all new and renewal automobile
insurance policies are governed by a new law that lowers automobile
insurance cost by reducing benefits and choices available to
persons injured in automobile accidents, resulting in less coverage
to pay for medical treatment and less rights to recover monetary
damages from careless drivers who cause accidents.

You must choose either the Standard Policy or Basic
Policy. The differences between the policies are dramatic.

**** For the protection of yourself and your family, we
recommend that you never choose a Basic Policy, but select a
Standard Policy with the largest liability and uninsured motorist
limits you can afford, the "no limitation on lawsuit option" and an
insurance company that does not require pre-certification of
medical treatment.****

I.    The Basic Policy Provisions
         
1) $5,000 of property damage liability coverage if  someone makes a claim against you.

2) $15,000 of medical expense benefits (up to $250,000 or brain or spinal cord injury) if you or a resident family member is injured.

3) No coverage if you injure someone else. However, you may choose coverage in the amount of $10,000 for injury to one or more persons in the same accident if someone makes a claim against you. Your insurance company will not provide an attorney to defend you  against a personal injury suit even if you are not at fault for the accident. If you don't hire your own lawyer, you risk having a monetary judgment entered  against you and the loss of your driver's license and vehicle registration.

4) No uninsured motorist coverage to protect you and your family if the careless driver who causes the accident is uninsured or is insured under a Basic Policy with no bodily injury liability coverage.
               
II. The Standard Policy Provisions

1) Minimum liability coverage limits of $15,000 per  person/$30,000 per accident and property damage of $5,000. of property damage liability coverage if someone makes a claim against you.

2) Uninsured motorist coverage with minimum limits of  $15,000 per person/$30,000 per accident if you or a resident member of your family is injured by a person who is uninsured or has no bodily injury liability coverage.

3)  Medical expense benefits up to $250,000 per person per accident.

III.  Medical Treatment Choices

Under the new law, many, if not all, insurance companies require "pre certification." This requires your  doctor to request authorization from the insurance company before rendering any medical treatment or administering any diagnostic tests. Therefore, the choice of treatment rest with your insurance company and not with your doctor.

IV.  Tort Option Provisions 

A. The Basic Policy
Everyone who elects the basic policy automatically loses the right to sue a careless driver for injuries sustained in an automobile accident unless one of six categories is met. The quote limitation on lawsuit option unquote, is the only choice.

B. The Standard Policy - You Have a Choice!
You may choose between the "no limitation on lawsuit option" or the "limitation on lawsuit option."

C. The Differences are Significant
1) The limitation on lawsuit option (also known as the verbal threshold) limits your legal rights to make a claim for monetary damages or to file a lawsuit against a careless driver unless you sustain one of the following types of injury:

Type 1 : Death
Type 2 : Dismemberment
Type 3 : Significant disfigurement or scarring
Type 4 : Displaced fractures
Type 5 : Loss of a fetus
Type 6 : Permanent injury (which occurs when
a body part has not and will not heal to     
function normally with further treatment)

2)   The no limitation on lawsuit option permits you to make a claim or to file a lawsuit against a careless driver for any and all personal  injuries.

MAKE THE RIGHT CHOICE
         
Call us for a free consultation should you wish to further discuss which types of coverage will best protect you and your family.

Copyright Jan, 2008