NJ Lawsuit ThresholdQuestions? (888) 546-1099New Jersey drivers
Limitation on lawsuit, or no limitation?
It is the choice on your NJ policy that decides whether you can claim for pain and suffering after a crash. Most drivers pick it once and never look again.
No junk mail • No spam calls • Free quotes • About 3 minutes
The difference in one page
No limitation on lawsuit
Also called zero threshold. You keep the full right to sue, and you pay more for it.
- Full right to sue for pain and suffering
- No injury category to prove first
- No physician certification needed to open the door
- Costs more than the limitation option
Limitation on lawsuit
Also called the verbal threshold. You pay less, and most injuries stop short of a pain-and-suffering claim.
- Lower premium — that is the whole reason to choose it
- Medical bills and lost wages still covered by your PIP
- Pain and suffering only if the injury fits one of six categories
- Applies to family members in your household as well
Either way, your PIP pays your medical bills regardless of fault. The choice is only about non-economic damages — pain, suffering and loss of enjoyment of life.
What New Jersey requires either way
Since January 1, 2026, a standard NJ policy has to carry at least these limits:
$35,000
Bodily injury liability, per person injured.
$70,000
Bodily injury liability, total per accident.
$25,000
Property damage liability.
$15,000
Minimum personal injury protection (PIP) for your own medical bills.
The bodily injury minimums rose from 25/50 to 35/70 that January, the second step of a two-part increase. Standard PIP defaults to $250,000, with lower options down to $15,000 — and PIP is what pays your own medical bills, so cutting it to save a few dollars is usually the wrong trade.
The six injuries that overcome the threshold
With limitation on lawsuit, you can still claim pain and suffering if the injury fits one of these:
Death
A fatality resulting from the accident.
Dismemberment
Loss of a limb or body part.
Significant disfigurement or scarring
Permanent visible damage, judged on its significance.
Displaced fracture
A broken bone that has moved out of position — not every fracture qualifies.
Loss of a fetus
Pregnancy loss caused by the accident.
Permanent injury
A body part or organ that has not healed to function normally and will not, certified by a physician on objective medical evidence.
In practice most disputes turn on the last one. Permanent injury needs objective medical evidence and a physician’s certification, which is why documentation matters so much on these claims.
How much PIP should you carry?
PIP pays your own medical bills after a crash, whoever caused it. It is the coverage you are most likely to use, and the one drivers cut first to save money.
$250,000
The standard default, and what most households should keep.
$150,000
A middle option offered by most carriers.
$75,000
A noticeable step down in what your own policy will pay.
$15,000
The legal floor — cheapest, and the least protection.
Dropping from $250,000 to $15,000 saves less than most people expect and exposes far more. New Jersey does keep up to $250,000 available even at lower levels for certain catastrophic injuries, such as permanent brain or spinal cord injury — but that carve-out is narrow, and ordinary serious injuries are not in it.
There is also a health-insurance-primary option, where your health plan pays first and your PIP premium drops. It works well for some households and badly for others, depending on your deductible and what your plan covers, so ask before electing it.
Basic policy or standard policy?
New Jersey also lets you buy a basic policy, which is cheaper because it carries almost nothing: $5,000 of property damage, $15,000 of PIP, and no bodily injury liability unless you add $10,000 of it. If you injure someone and you are on a basic policy, the shortfall is yours personally. For most households with a job, a home or savings to protect, the standard policy is the only sensible starting point.
Three things drivers miss
It covers your household
Your election reaches family members living with you who are not named insureds on another policy — including your kids.
It renews silently
Once chosen, the same option carries forward at every renewal until you change it. Many drivers have no idea which one they have.
Check your dec page
Your declarations page states your threshold and your PIP limit. Upload it when you quote and we will read it for you.
So which should you pick?
It comes down to what the savings are worth against what you would give up if someone hurts you badly. The premium difference varies by carrier, vehicle and driving record, so look at your own numbers rather than a rule of thumb. Start a quote and a licensed Insurox agent can walk you through both before you decide.
See what each option costs you
Compare NJ auto carriers in one free, no-obligation quote.
Get my quotes →Prefer to talk? Call (888) 546-1099
Mon-Fri, 9am-5pm ET
Your policy in your pocket
Insurox clients use the app for ID cards, documents, certificates and payments — and to reach a licensed agent without digging for a phone number.
