Petrillo & Goldberg Law Blog

Lawsuit options in New Jersey auto insurance

In New Jersey, there are auto insurance policies that provide you with the choice to limit or expand your options in the event that you are severely injured in a motor vehicle accident or because of a negligent motorist. There is the “Lawsuit Option,” which is also referred to as the Lawsuit Threshold, Verbal Threshold or Right to Sue Limitation. This option allows you to save money so that you can limit your right to file a lawsuit to recover damages for your injuries.

Although you will realize savings in the amount of your premium, you will only be able to file a claim for certain injuries. You will have to satisfy a minimum of one category in order to successfully sue. If the negligent driver’s insurance company determines that you might have been injured, and that the other motorist was at fault, but the insurance company thinks you were not sufficiently hurt to satisfy the requirements, then you will not recover.

However, if you decide to pay a higher premium for the right to file suit, there is no limit to the extent of damages you may recover due to the other driver’s negligence. Nevertheless, there is no guarantee that you will prevail in your claim. If it is determined that the other motorist was not negligent or that you were not seriously injured, you could lose your claim.

Despite the possibility that you may lose, it is still better to have the unlimited right to sue so that you, your family members, and anyone else covered by the policy will not be restricted in terms of the right to file a claim against a negligent motorist.

If you were injured in a motor vehicle accident, you should consult a personal injury lawyer.