Personal Injury Protection — New Jersey
Personal Injury Protection (PIP) covers your medical bills and lost wages after an accident, regardless of who caused it.
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What Is Personal Injury Protection Insurance?
Personal Injury Protection pays your medical expenses, lost income, and essential services costs after a car accident, without requiring you to prove the other driver was at fault. In New Jersey, PIP is mandatory coverage that kicks in before health insurance and processes claims faster than liability claims against another driver. Your PIP carrier pays your bills directly to medical providers within 60 days of receiving documentation, regardless of whether the accident was your fault, the other driver's fault, or a single-vehicle crash.
- Another driver runs a red light and T-bones your car. You break your collarbone and require surgery. Your PIP immediately covers your hospital bills, surgeon fees, physical therapy, and lost income while you recover. Even though the other driver was clearly at fault, your PIP pays first — you're not waiting months for their liability carrier to accept responsibility and issue payment.
- You're a passenger in a friend's car when they rear-end another vehicle at a stoplight. You hit your head on the window and need stitches and a CT scan. Your own PIP policy covers your medical bills, even though you weren't driving. If you don't have your own auto policy, the driver's PIP covers you as a passenger up to their policy limit.
Who Needs Personal Injury Protection Insurance?
Every New Jersey driver must carry PIP — it's not optional.
Compare your health insurance deductible and out-of-pocket maximum to the cost of increasing PIP limits. If you have excellent health coverage and employer-paid disability, the state minimum saves money without significant risk.
How Much Does Personal Injury Protection Insurance Cost?
- Household income — New Jersey PIP includes income continuation benefits, so carriers adjust rates based on your reported annual household income and the wage replacement percentage you select.
