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Guide · Car accidents · All states

Sued after a car accident: what your insurance covers, and what a judgment can reach

Updated By the Counselworthy teamGeneral information, not legal advice

Short answer

Your insurer pays first, up to your limit.

  • Liability insurance also pays a lawyer to defend you.
  • Above the limit, you're responsible.
  • In New Jersey, a wage execution takes the lesser of 10% of gross weekly pay or 25% of disposable earnings.
  • You must answer the lawsuit within 35 days after being served.

Checked November 1, 2026.

Sources: National Association of Insurance Commissioners, A Consumer's Guide to Auto Insurance; Maryland Insurance Administration, Are you covered? Umbrella insurance; Rules Governing the Courts of the State of New Jersey, Appendix XI-J, Order and Execution Against Earnings (CN 11471, revised July 1, 2022); New Jersey Courts, Collecting a Money Judgment, Special Civil Part (CN 10282, revised July 1, 2022); New Jersey Courts, How to File a Complaint in the Superior Court of New Jersey, Law Division, Civil Part (CN 10553, revised August 15, 2022). Every fact cites a source

Checker

What are you worried they'll take?

Pick the one that fits. It shows the rule that applies and what you can check yourself. It can't tell you whether you were at fault, what the claim is worth, whether it's above your limits, or what to do in your own case.

I had insuranceYour liability insurance
What it is
Liability insurance pays for injuries and damage you cause to others, up to the policy's limits. It also pays a lawyer to defend you.
Why it matters
That's what the coverage is for. A claim against you goes to your insurer first.
The rule
Liability insurance also will pay the cost of an attorney to protect you if you're sued.
What you can check

Find your policy's declarations page. It lists your liability limits.

Source: National Association of Insurance Commissioners, A Consumer's Guide to Auto Insurance
The claim may be more than my limitsYour liability limits
What it is
The policy pays up to its limits. You're responsible for injuries or damage you cause above them.
Why it matters
A limit is the most the insurer agreed to pay. The rest of a judgment is the driver's own debt.
The rule
The least a standard New Jersey policy issued or renewed from January 1, 2026 covers is $35,000 per person for injuries.
What you can check

Ask your insurer in writing whether it has said the claim may be above your limits.

Source: Maryland Insurance Administration, Are you covered? Umbrella insurance; P.L.2022, c.87 (N.J.S.A. 39:6A-3); N.J.S.A. 39:6A-3.1
I had no insuranceThe court's deadline
What it is
With no insurer, no one defends you or pays the claim for you. The lawsuit still runs.
Why it matters
The coverage that pays a lawyer and the claim isn't there.
The rule
In New Jersey, the person sued must answer within 35 days after being served.
What you can check

Write down the date you were served and the court on the papers.

Source: National Association of Insurance Commissioners, A Consumer's Guide to Auto Insurance; New Jersey Courts, How to File a Complaint in the Superior Court of New Jersey, Law Division, Civil Part (CN 10553, revised August 15, 2022)
My paycheckNew Jersey's wage execution form
What it is
After a judgment, the court can order part of your pay withheld until it's paid.
Why it matters
Only part: the court's own form caps it.
The rule
The lesser of 10% of gross weekly pay or 25% of disposable earnings. Nothing is withheld when disposable earnings are $217.50 a week or less.
What you can check

Check the order for the amount, and compare it with your pay stub.

Source: Rules Governing the Courts of the State of New Jersey, Appendix XI-J, Order and Execution Against Earnings (CN 11471, revised July 1, 2022); New Jersey Courts, Collecting a Money Judgment, Special Civil Part (CN 10282, revised July 1, 2022)
My bank account or benefitsNew Jersey's courts, Special Civil Part
What it is
Money levied in a bank account is frozen. Some benefits can't be levied at all.
Why it matters
The courts' collection guide lists benefits the officer can't take.
The rule
The court officer can't levy on Social Security, SSI, child support or welfare benefits.
What you can check

Keep the notice of the levy, and check which deposits in the account are benefits.

Source: Rules Governing the Courts of the State of New Jersey, Appendix XI-J, Order and Execution Against Earnings (CN 11471, revised July 1, 2022); New Jersey Courts, Collecting a Money Judgment, Special Civil Part (CN 10282, revised July 1, 2022)
My house or my thingsNew Jersey's courts
What it is
A judgment recorded in the Superior Court stops you selling New Jersey real estate with clear title until it's paid.
Why it matters
The debt has to be paid before a sale with clear title. Some belongings are kept.
The rule
In a Special Civil Part case, the debtor keeps $1,000 of personal property and clothing.
What you can check

Check whether the papers name the Special Civil Part or the Law Division.

Source: Rules Governing the Courts of the State of New Jersey, Appendix XI-J, Order and Execution Against Earnings (CN 11471, revised July 1, 2022); New Jersey Courts, Collecting a Money Judgment, Special Civil Part (CN 10282, revised July 1, 2022)
Can bankruptcy wipe it out?The federal Bankruptcy Code
What it is
Not when the injury came from driving while intoxicated. That debt survives a discharge.
Why it matters
Congress listed it among the debts a discharge doesn't cover.
The rule
A discharge doesn't cover a debt for death or personal injury caused by driving that was unlawful because the driver was intoxicated.
What you can check

This is federal law, the same in every state.

Source: 11 U.S.C. 523(a)(9), Exceptions to discharge

What happens when you're sued after a crash

The person hurt sues the driver they say caused it. With insurance, the claim and the defense go to the insurer.

  1. You're served with the papersIn New Jersey, the person sued must answer the complaint within 35 days after being served.Source: New Jersey Courts, How to File a Complaint in the Superior Court of New Jersey, Law Division, Civil Part (CN 10553, revised August 15, 2022)
  2. Your insurer pays for the defenseLiability insurance pays the cost of a lawyer to protect you if you're sued, and pays a claim up to your limits.Source: National Association of Insurance Commissioners, A Consumer's Guide to Auto Insurance
  3. The two sides exchange informationIn discovery, the parties exchange information about the case. Before trial, it may go to mediation or arbitration.Source: New Jersey Courts, How to File a Complaint in the Superior Court of New Jersey, Law Division, Civil Part (CN 10553, revised August 15, 2022)
  4. A trial, if it doesn't settleA judge alone, or a judge and a jury, hears the trial. A civil jury is usually 6 people.Source: New Jersey Courts, How to File a Complaint in the Superior Court of New Jersey, Law Division, Civil Part (CN 10553, revised August 15, 2022)
Source: New Jersey Courts, How to File a Complaint in the Superior Court of New Jersey, Law Division, Civil Part (CN 10553, revised August 15, 2022); National Association of Insurance Commissioners, A Consumer's Guide to Auto Insurance

Within your policy limits, and above them

What you could owe yourself turns on your liability limits. The policy pays up to them, and the driver is responsible for the rest.

Within your limitsThe insurer pays

Liability insurance pays for injuries and damage you cause to others, up to its limits, and pays a lawyer to defend you.

Above your limitsYou're responsible

You're responsible for any injuries or damage you cause above your limits. Insurance doesn't pay what the policy doesn't cover.

NJNew Jersey's minimum per person

A standard policy issued or renewed from January 1, 2026 must cover at least $35,000 per person for injuries, and $70,000 per accident.

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

A basic policy is an alternative to the standard coverages. Your declarations page says which you have.

Source: P.L.2022, c.87 (N.J.S.A. 39:6A-3); N.J.S.A. 39:6A-3.1
Source: National Association of Insurance Commissioners, A Consumer's Guide to Auto Insurance; Maryland Insurance Administration, Are you covered? Umbrella insurance; P.L.2022, c.87 (N.J.S.A. 39:6A-3); N.J.S.A. 39:6A-3.1

NJHow many drivers had an insurer on the police report in Jersey City

Counselworthy analysis of NJDOT's crash tables for Jersey City. Each police report has an insurer code for every vehicle: the company a claim against that vehicle goes to.

  • 68%of vehicles in Jersey City crashes that hurt someone had an insurer on the police report, by the state's insurer code: 7,816 of 11,479.
  • 1,257vehicles in Jersey City crashes that hurt someone had GEICO Indemnity Co as their insurer on the police report, more than any other insurer (of 7,678 with an insurer on the state's code list). Next: Government Employees Ins Co (1,079) and Progressive Garden State Ins (876).

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

A vehicle with no insurer code on the report isn't proof its driver had no insurance. The report shows only what the officer wrote at the scene. A lawsuit against an insured driver goes to that insurer, which pays up to the policy's limits.

NJWhat a judgment can reach in New Jersey

If a judgment isn't paid, the court can be asked to collect it. These are the limits New Jersey's courts publish.

NJWages: a share, not all of it

A wage execution takes the lesser of 10% of gross weekly pay or 25% of disposable earnings. Nothing is withheld at $217.50 a week or less.

Source: Rules Governing the Courts of the State of New Jersey, Appendix XI-J, Order and Execution Against Earnings (CN 11471, revised July 1, 2022); New Jersey Courts, Collecting a Money Judgment, Special Civil Part (CN 10282, revised July 1, 2022)
NJBank accounts: money levied is frozen

Once the court officer levies on an account, that money is frozen. The officer can't levy on Social Security, SSI, child support or welfare benefits.

Source: Rules Governing the Courts of the State of New Jersey, Appendix XI-J, Order and Execution Against Earnings (CN 11471, revised July 1, 2022); New Jersey Courts, Collecting a Money Judgment, Special Civil Part (CN 10282, revised July 1, 2022)
NJReal estate: no clear title until it's paid

Once a judgment is recorded in the Superior Court, the debtor can't sell New Jersey real estate with clear title until the debt is paid.

Source: Rules Governing the Courts of the State of New Jersey, Appendix XI-J, Order and Execution Against Earnings (CN 11471, revised July 1, 2022); New Jersey Courts, Collecting a Money Judgment, Special Civil Part (CN 10282, revised July 1, 2022)
NJBelongings: some are kept

In a Special Civil Part case, the debtor keeps $1,000 of personal property and clothing.

Source: Rules Governing the Courts of the State of New Jersey, Appendix XI-J, Order and Execution Against Earnings (CN 11471, revised July 1, 2022); New Jersey Courts, Collecting a Money Judgment, Special Civil Part (CN 10282, revised July 1, 2022)
NJQuestions about what you own

An information subpoena is a court document with written questions about the debtor's assets.

Source: Rules Governing the Courts of the State of New Jersey, Appendix XI-J, Order and Execution Against Earnings (CN 11471, revised July 1, 2022); New Jersey Courts, Collecting a Money Judgment, Special Civil Part (CN 10282, revised July 1, 2022)

A discharge in bankruptcy doesn't cover a debt for death or personal injury caused by driving that was unlawful because the driver was intoxicated. That is federal law, in every state.

What we can't do for you, and what you can check

The firms we rank represent people who were hurt, not drivers being sued. We don't rank defense lawyers.

  • DoRead the papers for the court, the date you were served and the deadline to answer.
  • DoFind your policy's declarations page. It lists your liability limits.
  • DoSend the papers to your insurer, and keep a copy of what you sent and when.
  • Don'tDon't let the answer deadline pass. In New Jersey, it's 35 days after being served.
  • Don'tDon't assume an uninsured driver loses everything. New Jersey's courts publish limits on what a judgment can take.
With insuranceThe insurer defends you

Liability insurance pays the cost of a lawyer to protect you if you're sued. What you could owe yourself is what's above your limits.

Without insurance, or above the limitsYour own money is at stake

No insurer pays the claim or a lawyer. The court's limits on wages, accounts and belongings still apply to a judgment.

Source: National Association of Insurance Commissioners, A Consumer's Guide to Auto Insurance; Maryland Insurance Administration, Are you covered? Umbrella insurance; New Jersey Courts, How to File a Complaint in the Superior Court of New Jersey, Law Division, Civil Part (CN 10553, revised August 15, 2022); Rules Governing the Courts of the State of New Jersey, Appendix XI-J, Order and Execution Against Earnings (CN 11471, revised July 1, 2022); New Jersey Courts, Collecting a Money Judgment, Special Civil Part (CN 10282, revised July 1, 2022)

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 can they take if I'm sued for a car accident?

With insurance, the claim goes to your insurer, which pays up to your limits and pays a lawyer to defend you. Above the limits, you're responsible. In New Jersey, a wage execution takes the lesser of 10% of gross weekly pay or 25% of disposable earnings.

Does my car insurance pay for a lawyer if I'm sued?

Liability insurance pays the cost of a lawyer to protect you if you're sued, as well as the claim up to your policy's limits.

What happens if a car accident claim is more than my insurance?

You're responsible for injuries or damage you cause above your limits. In New Jersey, a judgment that isn't paid can be collected from part of your wages, from bank accounts and from a sale of real estate.

Can a car accident judgment take my Social Security?

In a New Jersey Special Civil Part case, the court officer can't levy on Social Security, SSI, child support or welfare benefits.

Can I file bankruptcy on a car accident judgment?

A discharge doesn't cover a debt for death or personal injury caused by driving that was unlawful because the driver was intoxicated. That's federal law, the same in every state.

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