What is New Jersey's Tort Threshold?
In an attempt to control ever increasing automobile insurance premiums, the NJ Legislature has passed a series of so-called tort reform measures over the years. The most recent, the Automobile Insurance Cost Reduction Act (AICRA) was passed in 1998. Amongst many things, it enable purchasers of automobile insurance policies to choose either the Threshold or No Threshold option.
The Threshold option limits your right to sue for pain and suffering in exchange for a reduced premium. Consumers who choose the Threshold option agree that they and their spouses and children in the household will generally not be able to sue for pain and suffering arsing from a motor vehicle accident unless they suffer an injury in one of six categories: Death; Dismemberment: Loss of a fetus; Significant disfigurement or scarring; Displaced fractures; a permanent injury - defined as an injury that has not healed to function normally and will not heal to function normally with further medical treatment.
In most circumstances, if you do not suffer an injury in one of those categories, you will not be able to recover for you pain and suffering although you will generally receive PIP benefits to pay for your medical expenses and some loss of earnings. Of particular note is the fracture category. A simple fracture will not qualify UNLESS you can prove by competent medical evidence that the fracture produces a permanent injury, a relatively high bar for many simple fractures.
As with all things legal, there are exceptions to this rule. For instance, if you involved in an accident with a commercial vehicle which is not required to carry PIP coverage, the threshold does not apply to you.
