In New Jersey, individuals purchasing automobile insurance must select between two options affecting their rights to sue for personal injuries resulting from car accidents. One choice restricts the ability to sue for non-economic damages, such as pain and suffering, limiting lawsuits to instances where the injuries meet specific criteria, such as permanent disfigurement or permanent loss of a bodily function. The other option allows for suits for non-economic damages regardless of the severity of the injury.
The selection has a significant impact on insurance premiums. The more restrictive option generally results in lower premiums, making it an attractive choice for those seeking to minimize their insurance costs. However, this decision comes with the trade-off of potentially relinquishing the right to sue for damages that can significantly impact quality of life following an accident. The availability of these two distinct paths originated in an effort to balance affordability with the protection of individual rights.
