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Guide · Car accidents · All states

What compensation after a car accident covers, and who pays each part

Updated By the Counselworthy teamGeneral information, not legal advice

Short answer

It covers your losses, and sometimes pain.

  • Medical bills, lost pay and car damage count.
  • In New Jersey, your own PIP pays medical bills first, whoever caused the crash.
  • The other driver's insurer pays what PIP doesn't, and pain and suffering by default only for injuries the law lists.

Checked October 30, 2026.

Sources: Wex, Compensatory damages; N.J.S.A. 39:6A-4; N.J.S.A. 39:6A-4.3; N.J.S.A. 39:6A-5(g); N.J.S.A. 39:6A-12; N.J.S.A. 39:6A-2(k); N.J.S.A. 39:6A-8(a); N.J.S.A. 39:6A-2(i); N.J.S.A. 39:6A-8.1(b). Every fact cites a source

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What are you hoping to be paid for?

Pick a loss. It shows whose insurance usually pays it in New Jersey, and the rule behind it. It can't tell you what your claim is worth, whether you were at fault, or what to do in yours.

Medical billsYour own PIP, first
What it is
Personal injury protection on your own policy pays your medical bills, whoever caused the crash.
Why it matters
Every standard New Jersey policy includes it, for you and relatives living with you.
The rule
PIP covers up to $250,000 per person unless a lower amount was chosen in writing. Bills above your PIP limits, deductibles and copays can be claimed from the person at fault.
What you can check

Check your declarations page for your PIP limit and whether your health insurance was chosen to pay first.

Source: N.J.S.A. 39:6A-4; N.J.S.A. 39:6A-4.3; N.J.S.A. 39:6A-5(g); N.J.S.A. 39:6A-12; N.J.S.A. 39:6A-2(k); N.J.S.A. 39:6A-4.3(d); New Jersey Department of Banking and Insurance, Auto Insurance New Jersey Buyer's Guide
Pay I missedYour own PIP, then the driver at fault
What it is
PIP pays part of the income you lose, and the rest can be claimed from the person at fault.
Why it matters
A standard policy's PIP has a weekly and a total limit on lost income.
The rule
PIP pays lost income up to $100 a week and $5,200 in all, unless more was bought. Lost income PIP doesn't pay can be claimed from the person at fault.
What you can check

Keep pay stubs and a note from your employer of the days you missed.

Source: N.J.S.A. 39:6A-4(b), (c), (e); N.J.S.A. 39:6A-4.3(b); N.J.S.A. 39:6A-10; New Jersey Department of Banking and Insurance, Auto Insurance New Jersey Buyer's Guide; N.J.S.A. 39:6A-12; N.J.S.A. 39:6A-2(k)
Help at homeYour own PIP
What it is
PIP pays for services you'd have done yourself, like housework, while you're hurt.
Why it matters
It's part of the same PIP benefits as lost income.
The rule
Help at home is paid up to $12 a day and $4,380 in all. A policyholder can choose to drop these benefits.
What you can check

Keep receipts for the help you paid for, and the dates.

Source: N.J.S.A. 39:6A-4(b), (c), (e); N.J.S.A. 39:6A-4.3(b); N.J.S.A. 39:6A-10; New Jersey Department of Banking and Insurance, Auto Insurance New Jersey Buyer's Guide
My carThe other driver's insurer, or your collision coverage
What it is
The other driver's property damage liability pays for damage they cause. Your own collision coverage can pay first.
Why it matters
Car damage isn't part of PIP. It's a property claim.
The rule
You can claim under your own collision coverage even when you didn't cause the crash. Your insurer then seeks repayment from the other driver's insurer. The law doesn't require collision coverage.
What you can check

Ask each insurer which claim it's handling, and whether your deductible comes back if the other driver's insurer pays.

Source: New Jersey Department of Banking and Insurance, Auto Insurance New Jersey Buyer's Guide
Pain and sufferingThe other driver's insurer
What it is
Money for pain, discomfort and loss of enjoyment of life, from the person at fault.
Why it matters
PIP never pays it. It's a claim against the other driver.
The rule
Unless a driver chose otherwise in writing, their policy allows a pain and suffering claim only after the injuries the law lists, like a displaced fracture or a permanent injury. The law gives jurors no formula for it.
What you can check

Check your declarations page for which lawsuit option you have.

Source: N.J.S.A. 39:6A-8(a); N.J.S.A. 39:6A-2(i); N.J.S.A. 39:6A-8.1(b); Model Civil Jury Charge 8.11E (revised May 2017)
The other driver has too little insuranceYour own uninsured or underinsured coverage
What it is
Your policy's uninsured and underinsured motorist coverage can pay when the other driver's can't.
Why it matters
Every New Jersey liability policy except a basic policy must include it.
The rule
The minimum is $35,000 per person on policies issued or renewed from January 1, 2026. Underinsured coverage applies only when the at-fault driver's limits are lower than your own underinsured limits, and it's reduced by what you get from that driver's insurer.
What you can check

Check your declarations page for your uninsured and underinsured limits.

Source: N.J.S.A. 17:28-1.1(a), (b), (e)
Someone diedThe person at fault, through their insurer
What it is
A wrongful death claim for the family's financial losses, and a survival action for what the person could have claimed.
Why it matters
New Jersey's law gives the family these claims, brought by the estate's representative.
The rule
A wrongful death award covers the financial losses the death caused, plus hospital, medical and funeral expenses. A wrongful death lawsuit generally must be filed within 2 years.
What you can check

The wrongful death guide says who can bring the claim and what it recovers.

Source: N.J.S.A. 2A:31-5; N.J.S.A. 2A:15-3(a); N.J.S.A. 2A:31-3
Punishing the driverA jury, after a trial
What it is
Punitive damages punish a wrongdoer and deter the same conduct. They aren't compensation for a loss.
Why it matters
They're tried only after compensatory damages are awarded.
The rule
They need clear and convincing proof that the conduct was malicious, or in wanton and willful disregard of the person's rights. They're capped at 5 times the compensatory damages or $350,000, whichever is greater, except in some kinds of cases.
What you can check

Punitive damages come from a trial. A free consultation is where to ask whether the facts could meet that standard.

Source: Model Civil Jury Charge 8.60, Punitive Damages Actions, General (revised December 2011)

What car accident compensation can cover

Compensatory damages are money equal to the loss a person suffered, based on the harm they prove. Here's what that usually means after a crash.

Medical bills

What you paid, or owe, for treating the injury the crash caused.

Source: Wex, Compensatory damages
Lost income

Pay you lost while you couldn't work. Courts look at lost wages or income and expenses you had to pay.

Source: Wex, Compensatory damages
Your car and other property

The fair market value of property destroyed, or the cost of the damage. A car the insurer won't fix is a total loss.

Source: Wex, Compensatory damages
Pain and suffering

The physical discomfort and emotional distress that come with an injury, paid as noneconomic damages.

Source: Wex, Pain and suffering
Punitive damages, which aren't compensation

Money to punish a wrongdoer, on top of compensation rather than in place of it. In New Jersey, a jury decides them only after it awards compensation.

Source: Wex, Compensatory damages; Model Civil Jury Charge 8.60, Punitive Damages Actions, General (revised December 2011)
Source: Wex, Compensatory damages; Wex, Pain and suffering

NJWho pays each part in New Jersey

New Jersey is a no-fault state. Much of the money after a crash comes from your own policy, without a claim against anyone. The claim against the other driver covers the rest.

  1. Your PIP pays your medical billsPersonal injury protection pays without regard to fault, up to $250,000 per person unless a lower amount was chosen in writing.Source: N.J.S.A. 39:6A-4; N.J.S.A. 39:6A-4.3; N.J.S.A. 39:6A-5(g)
  2. Or your health insurance, if you chose it to pay firstA policyholder can choose health insurance as primary. PIP then pays what the health insurance doesn't cover, up to the PIP limit.Source: N.J.S.A. 39:6A-4.3(d); New Jersey Department of Banking and Insurance, Auto Insurance New Jersey Buyer's Guide
  3. PIP pays part of your lost pay and help at homeUp to $100 a week and $5,200 in all for lost income, and $12 a day for help at home, on a standard policy.Source: N.J.S.A. 39:6A-4(b), (c), (e); N.J.S.A. 39:6A-4.3(b); N.J.S.A. 39:6A-10; New Jersey Department of Banking and Insurance, Auto Insurance New Jersey Buyer's Guide
  4. The other driver's insurer pays what PIP doesn'tMedical bills above your PIP limits, your deductibles and copays, and lost income PIP didn't pay can be claimed from the person at fault. So can pain and suffering, when your policy's lawsuit option allows it.Source: N.J.S.A. 39:6A-12; N.J.S.A. 39:6A-2(k); N.J.S.A. 39:6A-8(a); N.J.S.A. 39:6A-2(i); N.J.S.A. 39:6A-8.1(b)
  5. Your car is a separate property claimThe other driver's property damage liability pays for damage they cause, or your own collision coverage pays and seeks repayment.Source: New Jersey Department of Banking and Insurance, Auto Insurance New Jersey Buyer's Guide
  6. Your own uninsured or underinsured coverage fills a gapWhen the other driver has no insurance, or less than your own underinsured limits, your policy's coverage can pay. It's reduced by what you get from that driver's insurer.Source: N.J.S.A. 17:28-1.1(a), (b), (e)
Source: N.J.S.A. 39:6A-4; N.J.S.A. 39:6A-8.1(a); N.J.S.A. 39:6A-4.3; N.J.S.A. 39:6A-5(g); N.J.S.A. 39:6A-12; N.J.S.A. 39:6A-2(k)

NJWhat Jersey City's police reports show about injuries

Counselworthy analysis of NJDOT's crash tables for Jersey City. Each report has an injury box for every person hurt: the most serious injury police wrote, and where on the body it was.

  • 75%of people hurt in Jersey City crashes had pain as the most serious injury on the police report: 6,068 of 8,114.
  • 2%of people hurt in Jersey City crashes had a broken bone or dislocation as the most serious injury on the report: 183 of 8,114.
  • 33%of people hurt in Jersey City crashes had their most serious injury in the back or neck, by the police report (of those with a place recorded): 2,480 of 7,524.

What police wrote on each crash report (form NJTR-1), 2019 to 2023, the newest years NJDOT has published in full. It isn't a finding of fault. Source: NJDOT crash tables, checked October 16, 2026.

See every crash on Jersey City's crash map

That matters for pain and suffering. Under New Jersey's default lawsuit limit, a claim for it needs an injury the law lists, like a displaced fracture or a permanent injury. The report is what an officer wrote at the scene. A claim rests on your medical records, which can show more.

What can shrink compensation, or stop it

These rules apply whoever handles the claim, with a lawyer or without one.

NJYour share of the fault

Your recovery is cut by your share of the fault. More than 50% at fault, you recover nothing.

Source: N.J.S.A. 2A:15-5.1; N.J.S.A. 2A:15-5.2
NJYour policy's lawsuit option

Unless a driver chose otherwise in writing, a policy limits pain and suffering claims to the injuries the law lists. It doesn't limit claims for medical bills and lost income nothing else paid.

Source: N.J.S.A. 39:6A-8(a); N.J.S.A. 39:6A-2(i); N.J.S.A. 39:6A-8.1(b); N.J.S.A. 39:6A-12; N.J.S.A. 39:6A-2(k)
NJThe other driver's coverage

New Jersey's minimum on standard policies issued or renewed from January 1, 2026 is $35,000 per person for injuries, and $70,000 per crash. Basic policies are an exception.

Source: P.L.2022, c.87 (N.J.S.A. 39:6A-3); N.J.S.A. 39:6A-3.1
NJThe deadline to sue

An injury lawsuit generally must be filed within 2 years.

Source: N.J.S.A. 2A:14-2(a)
NJA town or state agency

Pain and suffering generally can't be recovered from a public entity, with narrow exceptions, and a written notice is due first.

Source: N.J.S.A. 59:9-2; N.J.S.A. 59:8-8; N.J.S.A. 59:8-9

When people get it without a lawyer, and when they don't

Much of it never needs a lawyer. A lawyer can't change your policy's options or the facts of the crash, and the fee comes out of what you recover. Some situations still get harder alone.

Often handled aloneYour own coverage, and car damage

PIP and collision claims go to your own insurer. With car damage only, New Jersey's small claims kit covers up to $5,000 owed from a motor vehicle accident.

Worth a free consultationPain and suffering, or a fight

An injury the lawsuit limit lists, like a displaced fracture or a permanent injury; a fight over fault; small coverage on the other car; a death; or a close deadline. In New Jersey, a lawyer's fee is capped at 33⅓% of the first $750,000 recovered.

None of the 23 Jersey City injury firms we checked publish their fee on their website.

5 of 23 explain who pays case costs.

21 of 23 say the first consultation is free.

See which firms, on the Jersey City transparency scorecard

From each firm's own website, checked November 1, 2026.

Source: New Jersey Courts, How to Sue for Up To $5,000 in Small Claims Court, Motor Vehicle Case (CN 10148); N.J.S.A. 39:6A-8(a); N.J.S.A. 39:6A-2(i); N.J.S.A. 39:6A-8.1(b); R. 1:21-7(c), (d)

Sources

General information, not legal advice. We don't know the facts of your claim. A lawyer can review them, and most injury lawyers offer a free consultation.

What to do next

Questions people ask

What compensation can you get after a car accident?

Compensation for your losses: medical bills, lost income, car damage and other property, and pain and suffering when the law allows it. Punitive damages are something else: money to punish a wrongdoer, awarded by a jury after a trial.

Who pays compensation after a car accident in New Jersey?

Your own PIP pays your medical bills first, whoever caused the crash, and part of your lost income. The other driver's insurer pays what PIP doesn't, and pain and suffering when your policy's lawsuit option allows it. Car damage is a separate property claim.

Can I get pain and suffering after a car accident in New Jersey?

Unless a driver chose otherwise in writing, their policy allows a pain and suffering claim only after the injuries the law lists, like a displaced fracture, significant scarring or a permanent injury. The limit doesn't reach medical bills and lost income nothing else paid.

How much lost pay does PIP cover in New Jersey?

A standard policy's PIP pays lost income up to $100 a week and $5,200 in all, unless more was bought. Lost income above that can be claimed from the person at fault.

Are there punitive damages in car accident cases in New Jersey?

Only with clear and convincing proof that the conduct was malicious, or in wanton and willful disregard of the person's rights, and only after compensatory damages are awarded. They're capped at 5 times the compensatory damages or $350,000, whichever is greater, in most kinds of cases.

What if the other driver doesn't have enough insurance?

Your own underinsured motorist coverage can pay when the at-fault driver's limits are lower than your own underinsured limits. It's reduced by what you get from that driver's insurer. Uninsured coverage pays when the driver has none.

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