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Guide · Car accidents · All states

A car accident that wasn't your fault: what to do and who pays

Updated By the Counselworthy teamGeneral information, not legal advice

Short answer

  • In most states, the other driver's liability insurance covers injuries and car damage they cause.
  • In 12 no-fault states, including New Jersey, your own insurer pays your medical bills first, regardless of who was at fault.
  • For your car, you still claim from the at-fault driver's insurer, the National Association of Insurance Commissioners says.

Checked October 19, 2026.

Sources: National Association of Insurance Commissioners, A Consumer's Guide to Auto Insurance (2022); Insurance Information Institute, Background on: No-fault auto insurance. Every fact cites a source

Illustration: a car key resting on a closed folder on a kitchen table at dusk, beside a pen and a cup of coffee

First steps

From the National Association of Insurance Commissioners. New Jersey's rules for the scene are in our guide to what to do after a car accident in New Jersey.

  1. Exchange information with the other driverGet help right away if anyone is hurt.Source: National Association of Insurance Commissioners, A Consumer's Guide to Auto Insurance (2022)
  2. Take a photo or sketch the sceneA photo or a diagram of where the cars were.Source: National Association of Insurance Commissioners, A Consumer's Guide to Auto Insurance (2022)
  3. Claim your car from the at-fault driver's insurerEven in a no-fault state, that's how you're paid for damage to your car.Source: National Association of Insurance Commissioners, A Consumer's Guide to Auto Insurance (2022)

Whose insurance pays

It depends on whether your state has a no-fault law.

In most statesThe at-fault driver's insurance

Their liability coverage applies to injuries they cause to someone else, and pays for damage they cause to someone else's car.

In 12 no-fault states, including New JerseyYour own insurer pays your medical bills first

Regardless of who was at fault. You can still sue for severe injuries and for pain and suffering when the case meets the state's conditions.

Source: National Association of Insurance Commissioners, A Consumer's Guide to Auto Insurance (2022); Insurance Information Institute, Background on: No-fault auto insurance

NJWho pays for each loss in New Jersey

NJYour medical bills: your own PIP

It pays first, whoever caused the crash, up to $250,000 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)
NJBills past PIP, and lost income

Medical bills above your PIP limits, deductibles and copays, and lost income can be claimed from the person at fault.

Source: N.J.S.A. 39:6A-12; N.J.S.A. 39:6A-2(k)
NJYour car: either insurer

Claim from the other driver's insurer, or under your own collision coverage even though you didn't cause the crash. Your insurer then seeks repayment from the other driver's insurer.

Source: New Jersey Department of Banking and Insurance, Auto Insurance New Jersey Buyer's Guide
NJPain and suffering: the lawsuit limit

Unless a driver chose otherwise in writing, their policy allows it only after certain injuries, like a displaced fracture or a permanent injury.

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)
NJA driver with no insurance, or too little

Your own uninsured and underinsured motorist coverage can step in. Standard policies must carry at least $35,000 per person for injuries.

Source: N.J.S.A. 17:28-1.1(a), (b), (e)
NJThe other driver's coverage

The minimum is $35,000 per person for injuries and $25,000 for property damage, on standard policies issued or renewed from January 1, 2026.

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

A rental car, and your premium

A rental car

Most insurers offer rental car coverage for when your car is disabled. Check whether your own policy has it.

Source: National Association of Insurance Commissioners, A Consumer's Guide to Auto Insurance (2022)
Your premium

In some states, insurers can't charge you a higher premium because of accidents that weren't your fault. Ask your agent or insurer how your state handles it.

Source: National Association of Insurance Commissioners, A Consumer's Guide to Auto Insurance (2022)

NJWhen fault is disputed

The other driver's insurer may not agree it was all their driver's fault. These are New Jersey's rules.

NJYour share of the fault

It cuts what you recover. Above 50%, you recover nothing.

Source: N.J.S.A. 2A:15-5.1; N.J.S.A. 2A:15-5.2
NJHow long the insurer has

The other driver's insurer has 45 calendar days for a car damage claim and 90 for an injury claim. If it needs longer, it must say why in writing every 45 days.

Source: N.J.A.C. 11:2-17.6(b), (e); N.J.A.C. 11:2-17.7(a), (b), (c)(2), (c)(3), (e), (f)

NJThe deadlines in New Jersey

  1. Sue the driver at fault, in generalN.J.S.A. 2A:14-2(a)Within 2 years
  2. A government vehicle, like a town'sN.J.S.A. 59:8-8Notice within 90 days after the claim arises
Source: N.J.S.A. 2A:14-2(a); N.J.S.A. 59:8-8; N.J.S.A. 59:8-9

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 should I do after a car accident that wasn't my fault?

Exchange information with the other driver, get help if someone is hurt, and take a photo or sketch a diagram of the scene, the NAIC says. To be paid for your car, file a claim with the at-fault driver's insurer. In New Jersey, your own PIP pays your medical bills first.

Who pays my medical bills if the accident wasn't my fault?

In most states, the at-fault driver's liability coverage applies to injuries they cause. In no-fault states like New Jersey, your own insurer pays first, regardless of who was at fault. In New Jersey, bills past your PIP limits can be claimed from the person at fault.

Will my insurance go up if the accident wasn't my fault?

In some states, insurers can't charge you a higher premium because of accidents that weren't your fault, the NAIC says. Ask your agent or insurer how your state handles it.

Who pays for my car if the other driver caused the crash?

The at-fault driver's insurer. In New Jersey, you can also 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.

Can I sue if a car accident wasn't my fault in New Jersey?

For medical bills past your PIP limits and lost income, yes. For pain and suffering, the lawsuit limit applies unless the driver chose otherwise in writing. A lawsuit generally must be filed within 2 years.

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