When you buy a Standard auto policy in New Jersey, you have to choose a lawsuit option. The choice affects your price and what you can claim after a crash, so it is worth knowing what each option says. This guide follows the wording on the New Jersey Department of Banking and Insurance (DOBI) consumer pages.
| Unlimited Right to Sue | Limited Right to Sue | |
|---|---|---|
| Also called | No Limitation on Lawsuit option | Limitation on Lawsuit option |
| Pain and suffering lawsuits | You keep the right to sue the person who caused the accident for pain and suffering for any injury | You agree not to sue for pain and suffering unless you have one of the listed injuries |
| Medical bills and lost wages | Unaffected | Unaffected. You can still sue for economic damages such as medical expenses and lost wages |
DOBI stresses that both options only cover lawsuits for pain and suffering, which are non-economic losses. Your medical expenses and some economic losses are paid up to the limits of your personal injury protection (PIP) coverage no matter which option you pick.
Your selection applies to you, your spouse, your children and other relatives who live with you and are not covered under another auto policy.
DOBI's page notes that the Limited Right to Sue option can be imposed by law if no choice is made on the coverage selection form (N.J.S.A. 17:28-1.9). It also says insurers and their producers are not liable for your choice of lawsuit option or coverage amounts.
DOBI says the Basic policy includes the Limited Right to Sue option. See our guide to New Jersey minimum car insurance requirements for how Basic and Standard policies compare.
No. Per DOBI, the choice does not affect your ability to sue for economic damages such as medical expenses and lost wages, and PIP pays medical expenses up to your selected limit either way.
It applies to you, your spouse, your children and other relatives living with you who are not covered under another auto policy.
The Limited Right to Sue option, according to DOBI.
DOBI says your agent, insurance company or DOBI itself can help with questions about the Standard policy. This guide is general information, not advice on which option to pick.
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