Automobile insurance is mandatory in New Jersey, but there are several types of policies you can choose from. One of the most important and least understood considerations is the “Verbal Threshold” or “Limitation on Lawsuit” policy decision. If you are looking to reduce the cost of your insurance you might be asked if you want to opt for the verbal threshold, which will lower your rates but also significantly reduces your coverage for personal injury.
If you choose this option, you cannot sue the other party for your injuries unless you have a significant or permanent injury. But you might be surprised to learn that no even a broken bone is not considered significant! You will also need an affidavit from a medical doctor for each injury to state that the injury is permanent if you want to sue.
If you can afford it, I strongly urge you to opt for the no limitation on lawsuit policy considering how much more coverage it gives you as well as peace of mind. You can always look to save on cost by choosing a higher deductible for all coverages.
If you’ve been injured in a car accident and have any question, please call me, Frank Montero. The consultation is free and as always, there is no fee if there is no recovery.