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Guide · Car accidents · All states

Who pays your medical bills and lost wages after a crash

Updated By the Counselworthy teamGeneral information, not legal advice

Short answer

Who pays first depends on the state.

  • In 12 no-fault states, including New Jersey, each insurer pays its own policyholders' minor injury costs, whoever was at fault.
  • In New Jersey, your PIP pays medical bills first unless you made health insurance primary, and a standard policy pays lost income up to $100 a week.

Checked October 19, 2026.

Sources: Insurance Information Institute, Background on: No-fault auto insurance; 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-4.3(d); New Jersey Department of Banking and Insurance, Auto Insurance New Jersey Buyer's Guide; 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. Every fact cites a source

Illustration: a work badge hanging over a table with unopened envelopes, a lunchbox and keys

NJWho pays, in order

Bills from a crash usually move through these, one after the other. Your policy's choices decide the amounts.

  1. Your own PIP, whoever caused the crashIt pays medical bills up to $250,000 per person per accident, 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 first, if you chose thatIf your policy makes health insurance primary, it pays first. PIP then pays reasonable medical expenses it doesn't cover, up to your 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. Your deductible and copaymentPIP bills carry the deductible you chose and a 20% copayment on bills up to $5,000.Source: N.J.S.A. 39:6A-4; N.J.S.A. 39:6A-4.3; N.J.S.A. 39:6A-5(g); New Jersey Department of Banking and Insurance, Auto Insurance New Jersey Buyer's Guide
  4. The person at fault, for what PIP didn't payThe PIP law doesn't limit recovering medical bills above your PIP limits from the person at fault. That includes deductibles and copayments through a driver's secondary insurance coverage.Source: N.J.S.A. 39:6A-12; N.J.S.A. 39:6A-2(k)

NJCar insurance or health insurance?

In New Jersey, your auto policy's PIP pays first unless you chose the health insurance primary option.

Unless you chose otherwisePIP pays first

Your auto insurer pays crash medical bills, whoever caused the crash, after the deductible and copayment.

If you chose itHealth insurance pays first

Your health plan pays first. PIP covers reasonable medical expenses it doesn't, up to your PIP limit.

The state's buyer's guide says Medicare and Medicaid can't be used for the health insurance primary option. Your policy's declarations page shows which one you have.

Source: N.J.S.A. 39:6A-4.3(d); New Jersey Department of Banking and Insurance, Auto Insurance New Jersey Buyer's Guide

NJLost wages and help at home

A standard New Jersey policy's PIP pays more than medical bills, unless the policyholder chose to drop these benefits.

NJLost income

Up to $100 a week and $5,200 in all, never more than the net income you'd normally have earned. The state's guide says it's paid less any Temporary Disability Benefits.

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
NJHelp at home

Up to $12 a day and $4,380 in all, for services you'd normally do yourself.

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
NJFuneral costs

Up to $1,000 for funeral, burial and cremation expenses.

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
NJMore than the basic amounts

Insurers offer extra coverage for these benefits. Your declarations page shows what you bought.

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

NJHow fast PIP must pay

A PIP payment is overdue if it isn't paid within 60 days after the insurer gets written notice of the loss and its amount. Send bills and proof of missed work in writing, and keep copies.

If an insurer doesn't follow the rules, you can file a complaint in writing with the New Jersey Department of Banking and Insurance.

Source: N.J.S.A. 39:6A-4; N.J.S.A. 39:6A-4.3; N.J.S.A. 39:6A-5(g); New Jersey Department of Banking and Insurance, How to Request Assistance; N.J.S.A. 17:29B-4(9)(f)

NJWhen it's worth asking a lawyer

  1. Your bills are more than your PIP paysThey can be claimed from the person at fault. A person who wins medical bills only also gets reasonable attorneys' fees for collecting them.Source: N.J.S.A. 39:6A-12; N.J.S.A. 39:6A-2(k)
  2. You've missed more work than PIP coversLost income past your PIP benefits is part of what a claim against the person at fault can cover.Source: N.J.S.A. 39:6A-12; N.J.S.A. 39:6A-2(k)
  3. PIP is late or says noA payment is overdue 60 days after written notice of the loss and its amount.Source: N.J.S.A. 39:6A-4; N.J.S.A. 39:6A-4.3; N.J.S.A. 39:6A-5(g)

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

Who pays medical bills after a car accident?

It depends on the state. In 12 no-fault states, including New Jersey, each insurer pays its own policyholders' minor injury costs first, whoever was at fault. In New Jersey, that's your PIP, unless you made health insurance primary.

Who pays my medical bills after a car accident in New Jersey?

Your own auto policy's PIP, whoever caused the crash, up to $250,000 per person unless a lower amount was chosen in writing. If you made health insurance primary, it pays first.

Does car insurance or health insurance pay first after an accident in New Jersey?

Car insurance, through PIP, unless you chose the health insurance primary option. Then your health plan pays first and PIP covers what it doesn't, up to your PIP limit.

Does PIP pay lost wages in New Jersey?

On a standard policy, yes, unless the benefit was dropped: up to $100 a week and $5,200 in all, never more than your normal net income. Extra coverage can raise it.

What if my medical bills are more than my PIP coverage?

New Jersey's PIP law doesn't limit recovering medical bills above your PIP limits from the person at fault, including deductibles and copayments through a driver's secondary insurance coverage.

Can I get paid for help at home after a crash in New Jersey?

A standard policy's PIP pays for services you'd normally do yourself, up to $12 a day and $4,380 in all, unless the benefit was dropped.

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