A NJ court has held that drivers choosing lower personal injury protection (PIP) coverage under their auto insurance policy can sue for medical expenses that exceed their PIP coverage amount. In Wise v. Marienski, UNN-L-2741-09, Superior Court Judge Kenneth Grispin found that two women injured in a 2007 car crash can pursue claims for nearly $50,000 in uncompensated medical costs after the available $15,000 in PIP coverage was exhausted.

Minimal PIP Limit is Not Enough Coverage 

All drivers in NJ have to insure their car with a minimum of $15,000 in Personal Injury Protection coverage to cover medical expenses. Unfortunately, many times $15,000 is not enough to cover serious personal injuries sustained in a car accident. The decision is a great one because it will allow those drivers carrying only $15,000 in PIP coverage to sue the person that hit them for excess medical bills over this amount.

The Department of Banking and Insurance in NJ reports that the vast majority of drivers continue to be insured under policies with $250,000 in PIP benefits, but more people are opting for lower limits.  The most dangerous policies are the ones with only $15,000 in PIP coverage.  My strong advice is to carry at least $250,000 in PIP benefits and even this can at times not be enough. An accident causing serious injuries can cause havoc on you and your family, especially where there is not enough medical insurance to cover the cost of your medical treatment.

Keep in mind that there is another Law Division case in NJ that comes to a contrary conclusion than this new Wise case. In Kim v. Kim, BER-L-5471-08, the trial court found that an an injured party could not pursue medical expenses against a negligent driver above their PIP coverage limits.

Be careful and carry the highest PIP coverage that you can. The cost is not as much as you think and will avoid many problems when seeking medical coverage as the result of an auto accident.  If you have a question arising from a car accident, call a personal injury lawyer in one of our NJ offices.