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New Jersey Car Accident Settlement

New Jersey Auto Accident Settlements

If you have been injured in a car accident in New Jersey, you may be wondering what your options are for financial compensation. The good news is that you may be entitled to recover damages for your medical expenses, lost wages, pain and suffering, and other losses. However, the amount of money you receive will depend on several factors, including the severity of your injuries, the extent of your losses, and the facts of your case.

Car Accident Settlement

This article discusses the average settlement for a New Jersey car accident and other relevant information to help you get the best possible car accident settlement for your injuries.

On this page we’ll examine New Jersey auto accident laws, including how long you have to file a New Jersey car accident settlement, and how much compensation you may be entitled to. We also go over how the payout will be affected based on how at fault you were in causing the car crash. As you will find out from the stats provided, you’re not the only one going through this. Great as it is, the Garden State has a reputation for bad drivers and auto accidents.

What is the Average Settlement for a New Jersey Car Accident?

The average settlement for a New Jersey car accident varies depending on the severity of the injuries and the extent of the losses. However, according to the Insurance Information Institute, the average car accident settlement in the United States in 2021 was around $20,000 for bodily injury and $5,000 for property damage.

Of course, this is just an average. The amount of money you receive may vary greatly from that amount. In that case, you may want to discuss the facts of your case with a skilled personal lawyer, who can provide you with professional advice on next steps.

How Long Does It Take to Settle a Car Accident Claim in New Jersey?

The amount of time it takes to settle a car accident claim in New Jersey can vary depending on some factors, including the severity of your injuries, the extent of your losses, and the facts of your case. However, in general, it can take anywhere from a few months to a few years to resolve a car accident claim.

If you can reach a settlement with the other driver’s insurance company, the process may be relatively quick. However, if the other driver’s insurance company denies your claim or offers you a low settlement, you may need to file a lawsuit to get the compensation you deserve.

How Do Car Accident Claims Work in New Jersey?

Here is a brief overview of how car accident settlements work in New Jersey:

  1. File a police report. After a car accident, it is important to file a police report. The police report will document the facts of the accident, which can be helpful if you later file a personal injury claim.
  2. Get medical attention. If you are injured in a car accident, it is important to get medical attention right away. Even if you don’t think you are injured, it is important to be checked by a doctor. Some injuries, such as whiplash, may not show up for days or even weeks after an accident.
  3. Exchange insurance information with the other driver. After a car accident, it is important to exchange insurance information with the other driver. This information will be necessary if you later file a personal injury claim.
  4. Contact a personal injury lawyer. If you have been injured in a car accident, it is important to contact an experienced personal injury lawyer as soon as possible. An attorney can help you understand your rights and options and get the compensation you deserve.

Personal injury protection (PIP) is a type of insurance that all drivers in New Jersey are required to have. PIP insurance pays for your medical expenses, lost wages, and other damages, up to certain limits, regardless of who caused the accident.

If you are injured in a car accident in New Jersey, you will likely file a PIP claim with your own insurance company. Your PIP insurance company will then pay for your medical expenses, lost wages, and other damages, up to the limits of your policy.

If your injuries are serious enough, you may also be able to file a car accident lawsuit against the other driver. A personal injury lawsuit can be used to recover damages for your medical expenses, lost wages, pain and suffering, and other losses.

What Damages Can You Recover in a New Jersey Car Accident Settlement.

Here are some of the damages you may be able to recover in a New Jersey car accident settlement:

  • Medical expenses: This includes the cost of your initial treatment, as well as any future medical care you may need as a result of your injuries. This can include doctor’s visits, hospital stays, surgery, physical therapy, and prescription medications.
  • Lost wages: If you were unable to work as a result of your injuries, you may be able to recover lost wages. This includes the income you lost while you were unable to work, as well as any future income you may lose as a result of your injuries.
  • Pain and suffering: This is a monetary award for the physical and emotional pain you have suffered as a result of your injuries. This can include the pain and suffering you experienced at the time of the accident, as well as the pain and suffering you will continue to experience in the future.
  • Property damage: If your car was damaged in the accident, you may be able to recover the cost of repairs or replacement. This can include the cost of repairing or replacing your car, as well as the cost of any personal belongings that were damaged in the accident.
  • Other losses: You may also be able to recover damages for other losses, such as loss of consortium (the loss of companionship and affection of a spouse or other loved one) and disfigurement.

New Jersey  Car Accident Settlement Examples

Here are a few examples of car accident settlements in New Jersey:

New Jersey Car Accident and Driving Laws

New Jersey is a “no-fault” state, which means that your own insurance company will pay for your medical expenses and lost wages, regardless of who was at fault for the accident. However, if your injuries are serious enough, you may be able to file a claim against the other driver’s insurance company.

The following are some of the most important New Jersey car accident laws:

  • You must have car insurance with at least $15,000 in personal injury protection (PIP) coverage and $15,000 in property damage liability (PD) coverage.
  • You must drive on the right side of the road.
  • You must obey all traffic signals and signs.
  • You must not drive while intoxicated or under the influence of drugs.
  • You must not drive distracted.

In addition to the car accident laws, there are also a number of other driving laws that you must follow in New Jersey. These laws include:

  • You must be at least 16 years old to drive a car.
  • You must have a valid driver’s license.
  • You must wear a seat belt.
  • You must not drive with a suspended or revoked license.
  • You must not drive a car that is not registered or insured.

What should I do if I am involved in a car accident in New Jersey?

If you are involved in a car accident in New Jersey, it is important to take the following steps:

  • Stop your car in a safe location.
  • Check for injuries. If anyone is injured, call 911 immediately.
  • Exchange information with the other driver, including names, addresses, phone numbers, and insurance information.
  • Take photos of the damage to both cars.
  • Write down a statement of what happened.
  • Do not admit fault.

New Jersey Car Accident Statistics

  • 559 people were killed on roadways in New Jersey in 2019, according to the New Jersey State Police. The deaths were caused by 525 fatal crashes. 288 of the victims were drivers, 81 were passengers, 12 were pedal cyclists and 177 were pedestrians.
  • The 2019 fatalities (559) are just shy of the 563 reported by the New Jersey Department of Transportation in 2018. So, while there’s an improvement in the way New Jerseyans drive their cars, it’s barely worth noting.
  • Essex county led in number of auto accidents in 2018, claiming 30,078 of all cases. Bergen followed closely (29,459) with Middlesex (28,965), Union (20,377) and Hudson (19,627) completing the top 5. Combined, these 5 counties accounted for 46.2% of all auto accidents in New Jersey.
County Total Crashes Total Injury Crashes Total Fatal Crashes
Atlantic 7,494 1,980 27
Bergen 29,459 6,292 32
Burlington 12,238 2,830 40
Camden 15,755 4,088 42
Cape May 2,532 562 10
Cumberland 3,706 1,208 18
Essex 30,078 6,779 43
Gloucester 7,713 1,815 33
Hudson 19,627 3,460 21
Hunterdon 4,033 680 3
Mercer 10,473 2,212 28
Middlesex 28,965 6,215 47
Monmouth 18,164 3,974 28
Morris 14,742 2,820 25
Ocean 14,848 3,518 31
Passaic 19,110 4,299 20
Salem 17,38 443 7
Somerset 10,748 2,165 23
Sussex 3,153 707 12
Union 20,377 4,238 27
Warren 3,460 758 7
  • Jersey City ranked as the safest driving city in the Garden State in 2019. It was followed by Newark, with Paterson completing the top 3. It’s safe to say that New Jerseyan drivers don’t enjoy as much road safety as their counterparts in other states. The three safest cities in New Jersey rank 110th, 143rd and 147th in the U.S.
  • Speaking or rankings, New Jersey tops all the other American states when it comes to speeding. Motorists in the Garden State rank 1st in dangerous driving behavior, 6th in drunk driving, 8th in failure to obey traffic rules and 39th in careless driving.
  • Angle crashes are the most common in New Jersey followed by parked vehicle accidents, crashing into fixed objects, sideswipes, accidents while backing up, head-on collisions, and finally left/U-turn accidents.

If you or your loved one is harmed by a careless driver, New Jersey auto accident laws give you the right to be made whole for the loss. However, the state’s legal provisions and requirements can be complex to understand. That, coupled with the fact that an accident may cause emotional distress, makes it hard for you to deal with insurance adjusters and the legal system by yourself. That’s where a New Jersey auto accident lawyer comes in.

Generally speaking, the Garden State uses “no fault insurance” for car accidents. That means your insurance policy pays for your damages and injuries regardless of who caused the auto accident. The law, nonetheless, requires a clear establishment of who is at fault for the accident.

If the other driver is entirely to blame, they’ll use their insurance carrier to compensate you for losses (medical bills, car damage, lost wages etc.) However, the New Jersey “no fault” law doesn’t permit you to get compensation for pain and suffering unless your medical bill reaches a certain level. That said, the state law permits you to opt out of “no fault” and use a liability claim to seek compensation for pain and suffering.

New Jersey uses the “modified comparative fault” when you and the other party share the blame for an accident. That means your damages award will reduce by a percentage that’s equal to your share of the fault. For example, if the jury decides that your total damages award should be 50,000, but also decides that you are 20% responsible for the accident, you’ll be entitled to 80% of the total award (i.e. 40,000). Note that you will not receive any damages award (0%) if your share of the blame is over 50%. Again, a lawyer should advice you accordingly.

What is A ‘Choice No-Fault’ Car Insurance State?  new jersey auto accident laws

New Jersey is one of the few states that follows a no-fault car insurance system in regards to injuries coming from a car accident.  This means that if you are in an auto accident, no matter who is at fault you will reach out to your insurance company.  New Jersey doesn’t care who was at fault in the accident.  You will receive compensation for medical expenses or car damage it will come through your own insurance company.  Hence the phrase, “no fault”.

The one caveat to this occurs when you are purchasing your auto insurance policy.  At that point in time you will have the option of traditional car insurance or no fault.  If you opt for traditional insurance, you will be able to go after the other drivers’ insurance in the case you were injured

There is the possibility that even if you choose no fault insurance coverage you will still be able to file a lawsuit.  This clause is known as the “serious injury” claim.  In order to use this law New Jersey requires loss of a fetus, displaced fractures, dismemberment, significant disfigurement or significant scarring.

Dram Shop Laws in New Jersey

Dram shop laws are an important part of personal injury law in the state of New Jersey. These laws hold bar and restaurant owners responsible for any injuries caused by a patron who was served alcohol at their establishment and later acted negligently or recklessly.

Under New Jersey’s dram shop law, the injured party may seek monetary damages for their injuries if:

  • The patron was served alcohol while visibly intoxicated; or
  • The patron was underage and was illegally served alcohol.

In addition, the injured party may be able to seek punitive damages from the bar or restaurant in order to punish them for recklessly or negligently serving the patron.

New Jersey Statute of Limitations

A statute of limitations is a law that limits the amount of time you have to initiate legal action following an event. New Jersey has a two-year statute of limitations for personal injury claims. This means that if you are injured in an accident, you must file your lawsuit within two years of the accident date. If you fail to do so, your claim will be forever barred and you will not be able to seek any compensation for your injuries.

There are rare exceptions to this statute, most of which depend on the severity of injuries. Talk to a New Jersey car accident attorney if you want to know whether you still have enough time to file a lawsuit. In general, it’s best to file start your claim sooner rather than later, when the incident is fresh in the mind of people involved, witnesses, etc. 

Car Accident Lawsuit

New Jersey’s Comparative Fault Laws

If you file a lawsuit where you are not 0% at fault in New Jersey, it will use New Jersey’s modified comparative fault’ rule to determine how at fault each party is under New Jersey Auto Accident Laws. Under this law your compensation will be deducted by the percentage at fault the jury or judge decides is yours. Let’s walk through an example.

Suppose you’ve been in a car accident and been injured. The total cost of lost wages, medical bills, pain and suffering and everything is else determined to be a total of $100,000.

During the lawsuit however the judge determines that 30% percent of the crash was you fault. Under New Jersey’s modified comparative negligence rule, you would receive only $70,000 of the $100,000 in damages. The way the math works for this is that the $100,000 is divided by 30%, or $30,000, and the money received is reduced by this amount. This changes as soon as it’s determined you were over 50% at fault at which case the law states that you will receive $0 in damages.

It’s important to keep this in mind when negotiating an auto accident settlement in New Jersey to make sure you get the most money possible.

Other Rules regarding Auto Accidents in New Jersey

New Jersey Small Claims: $3,000 Limit

New Jersey Personal Injury Statute of Limitations: You will have two years from the date of injury. The only exception is if you don’t discover the injury until a later date. In this case you have from the date you discovered the injury.

New Jersey

Car Accidents Involving Government Vehicles:

Car accidents involving government vehicles are a bit different. If you’re in a crash with a government vehicle or worker, you’ll need to file a claim with the right government agency, and you may not have two years to do it.

Reporting a Car Accident in New Jersey

Under the New Jersey law, you must report any auto accident that results in death, injury or property damage of $500 or more. The best and easiest way of doing that is to call 911 or the local police. You will then be required to fill out a written report within 10 days of the accident.

Depending on the severity of the accident, you might not be able to complete the report. For example, you might be unconscious or in shock for 10 or more days after the crash. In that case, the owner of the vehicle – if it’s not you – should do so. Additionally, you don’t need to fill the report if a police officer does so.

Note that you’ll be stripped of your license and fined $100 plus court costs if you knowingly fail to report an accident. If you were involved in an accident and haven’t called it in, please talk to a lawyer and they’ll advise you and fix the situation.

New Jersey Car Accident Settlement Calculator:

Have you been involved in a motor vehicle accident or otherwise injured in New Jersey? Find out how much financial compensation you may be legally entitled to in just minutes with our free car accident settlement calculator.

New Jersey Car Accident Settlement Taxes

Generally, any income earned is taxable at the federal and New Jersey state levels. But a legal settlement from a personal injury settlement can have taxable and non-taxable portions, depending upon the situation.

First, New Jersey will not tax you for the part of the settlement that is supposed to compensate you for the expenses you incurred for treating your mental and physical injuries. These include medical bills. But if you did deduct those medical bills to drop your tax liability last year, reimbursement will be considered to be taxable in New Jersey. Also, money that reimburses you for your property damages is not taxable, unless you had a profit because the settlement amount was more than the value of the property that was damaged.

If your settlement includes punitive damages, which punish the company or person that violated your rights, then this is deemed to be taxable income in New Jersey. Any interest that was added to that part of the settlement is also taxable income.

Money that is to provide compensation for your emotional distress that you suffered due to your personal injury is also not taxable in New Jersey. But if you suffer emotional distress due to something besides a physical injury, any of that money is taxable in New Jersey.

If your New Jersey car accident settlement includes back pay, such as you lost hours because of the injury and filed a workers comp suit against your company, this amount would be taxable in New Jersey. But if you get compensation for lost wages that are related to physical injury from anyone other than your employer, the income is not taxable in New Jersey.


No matter the cause of your car accident, it is important to be aware of New Jersey’s laws and regulations regarding car accidents. Knowing your rights and responsibilities as a driver can help ensure that you are properly compensated for any injuries or damages incurred in an accident. It is also important to remember that there are time limits on filing claims, so if you have been injured in a car accident, it is best to seek legal assistance as soon as possible. With the right information and support, you can make sure that justice is served following your auto accident in New Jersey.

Car Accident Settlement

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