Right to Sue in New Jersey- Lawsuit Options

In New Jersey, there are basically two (2) types of Options on an automobile insurance policy which control the right to sue for monetary damages for pain and suffering in automobile accidents.

The first Option which is available is known as "The Lawsuit Limitation Option" or also "The Verbal Threshold". Both the Lawsuit Limitation Option and the Verbal Threshold Option mean the same thing.

Under these Options, a person needs a very serious injury to recover monetary damages for pain and suffering even if the other driver is 100% at fault.

Many times persons injured in accidents who are not at fault, and who have chosen the Lawsuit Limitation Option or Verbal Threshold Option, are unable to recover for their pain and suffering notwithstanding severe injuries.

The Verbal Threshold actually refers to certain verbal statutory language which defines in words the types of injuries which are required to sue for pain and suffering.

There are six (6) types of injuries described verbally as follows:

Type 1- Death

Type 2- Dismemberment

Type 3- Significant disfigurement or scarring

Type 4- Displaced fractures

Type 5- Loss of a fetus

Type 6- Permanent injury (which occurs when a body part has not and will

not heal to function normally with further treatment)

Insurance Companies in New Jersey have taken a very hard stand against persons injured who may not fit in with the above six (6) injuries even though they may be significantly hurt.

The second type of Option that a person may choose is the "No Limitation on Lawsuit Option", or "Zero Threshold", which is the same thing.

With a No Limitation on Lawsuit Option, or Zero Threshold, an injured person is able to sue for injuries without giving the insurance companies the right to refuse to make payments which many times are upheld in the Courts.

Therefore, Tepper, Scherling & Berliner recommend the No Limitation on Lawsuit Option, or Zero Threshold, when selecting your insurance coverages.

The No Limitation on Lawsuit Option always allows you, or your family, to sue a negligent driver for any painful injury, and allows you, or your family, to recover for monetary damages for many losses.

It is important to choose the No Limitation on Lawsuit Option, which may also be known as the No Threshold, or Zero Threshold, each time you insure any vehicle, renew any policy, or purchase any new policy.

Failure to complete the insurance application form, or even failure to return insurance form, may result in your insurance company automatically giving to you a policy with a Limitation on Lawsuit Option, or Verbal Threshold, which may prevent you from suing for monetary damages for your injuries, or injuries to members of your family.

The No Threshold Option is therefore the correct choice.

Please contact Tepper, Scherling & Berliner for more information.