How Much Is a New Jersey Car Accident Claim Worth?

What Damages May Be Recovered?

New Jersey law separates damages into two broad categories:

• Economic loss: uncompensated income, property loss, medical expenses, and other uncompensated expenses.
• Noneconomic loss: pain, suffering, and inconvenience.

These categories are defined by N.J. Stat. Ann. § 39:6A-2. Because Personal Injury Protection commonly covers accident-related economic losses regardless of fault, an injured person generally cannot recover economic losses that were collectible or paid through PIP a second time from the at-fault driver. N.J. Transit Corp. v. Sanchez, 242 N.J. 78 (2020).

Does the Verbal Threshold Apply?

Your automobile policy’s tort option can significantly affect case value. Under the limitation-on-lawsuit option, commonly called the verbal threshold, a claimant generally may recover noneconomic damages only by establishing one of six qualifying injuries:

1. 1.Death;
2. 2.Dismemberment;
3. 3.Significant disfigurement or significant scarring;
4. 4.A displaced fracture;
5. 5.Loss of a fetus; or
6. 6.A permanent injury within a reasonable degree of medical probability.

N.J. Stat. Ann. § 39:6A-8.

An injury is considered permanent when the affected body part or organ has not healed to function normally and will not heal to function normally with further treatment. A plaintiff must support the qualifying injury with objective clinical evidence and an appropriate physician certification. Diprospero v. Penn, 183 N.J. 477 (2005).

The claimant does not have to satisfy a separate “serious impact on life” test. Proving one of the statutory injury categories is sufficient, provided the claim is supported by the required medical evidence. Serrano v. Serrano, 183 N.J. 508 (2005).

Objective testing and causation remain critical. Subjective complaints alone may be insufficient, and a claimant alleging aggravation of a pre-existing injury may need comparative medical evidence showing what the accident changed. Davidson v. Slater, 189 N.J. 166 (2007).

A person covered by the no-limitation-on-lawsuit option is not required to satisfy the verbal threshold before pursuing noneconomic damages, although the person must still prove that the accident caused the claimed injuries and losses. N.J. Stat. Ann. § 39:6A-8.

How Insurance Policy Limits Affect Case Value

Even when damages are substantial, the amount that can realistically be collected may depend on available insurance.

For standard policies issued or renewed beginning January 1, 2026, New Jersey’s statutory minimum bodily-injury liability limits are $35,000 per person and $70,000 per accident. The required property-damage limit is $25,000 for policies issued or renewed on or after January 1, 2023. N.J. Stat. Ann. § 39:6A-3.

A basic policy is different. It provides $5,000 in property-damage liability coverage and may include optional bodily-injury liability coverage of $10,000 per accident. N.J. Stat. Ann. § 39:6A-3.1.

If the at-fault driver is uninsured or does not have enough coverage, the injured person’s own uninsured or underinsured motorist coverage may become important. Standard-policy insurers must offer optional UM/UIM bodily-injury limits up to at least $250,000 per person and $500,000 per accident, but those limits cannot exceed the insured’s liability limits. N.J. Stat. Ann. § 17:28-1.1.

UIM coverage generally applies when the at-fault driver’s liability limits are lower than the applicable UIM limits held by the injured person, and UIM recovery requires damages exceeding the available liability coverage. French v. N.J. School Bd. Ins. Group, 149 N.J. 478 (1997). Multiple injured claimants may also have to share a per-accident limit, reducing the amount available to each person. Gambino v. State Farm Insurance, 348 N.J. Super. 204 (2002).

Factors Used to Value a New Jersey Car Accident Claim

A meaningful evaluation should address the following:

The Bottom Line

The value of a New Jersey car accident case is highly fact-specific. Before estimating a claim, the accident evidence, medical records, tort option, PIP payments, liability limits, UM/UIM coverage, wage loss, prior medical history, and number of injured claimants should all be reviewed.

References

1. [1]Section 39:6A-2: Definitions — N.J. Stat. Ann. § 39:6A-2
2. [2]N.J. Transit Corp. v. Sanchez, 242 N.J. 78 (N.J. 2020)
3. [3]Section 39:6A-8: Tort exemption, limitation on the right to noneconomic loss — N.J. Stat. Ann. § 39:6A-8
4. [4]Diprospero v. Penn, 183 N.J. 477 (N.J. 2005)
5. [5]Serrano v. Serrano, 183 N.J. 508 (N.J. 2005)
6. [6]Davidson v. Slater, 189 N.J. 166 (N.J. 2007)
7. [7]Section 39:6A-3: Compulsory automobile insurance coverage; limits — N.J. Stat. Ann. § 39:6A-3
8. [8]Section 39:6A-3.1: Election of basic automobile insurance policy; coverage provided — N.J. Stat. Ann. § 39:6A-3.1
9. [9]Section 17:28-1.1: Required coverage; exceptions — N.J. Stat. Ann. § 17:28-1.1
10. [10]French v. N.J. School Bd. Ins. Group, 149 N.J. 478 (N.J. 1997)
11. [11]Gambino v. State Farm Insurance, 348 N.J. Super. 204 (N.J. Super. 2002)
12. [12]Section 2A:15-5.1: Contributory negligence; elimination as bar to recovery; comparative negligence to determine damages — N.J. Stat. Ann. § 2A:15-5.1