Who Pays For Your Injuries After A Drunk Driving Accident In NJ?
Being injured by a drunk driver can leave you dealing with far more than vehicle damage. You may suddenly face emergency room bills, ongoing medical treatment, missed work, physical pain, and uncertainty about how you are going to pay for everything.
One of the first questions many injured drivers ask is: Who is responsible for paying my medical bills and other losses?
In New Jersey, the answer can be more complicated than simply saying that the drunk driver pays. New Jersey follows a no-fault automobile insurance system, which means your own insurance coverage will often pay certain medical expenses first, even when another driver clearly caused the accident.
Depending on the circumstances, however, the drunk driver’s insurance, your own uninsured or underinsured motorist coverage, and other sources may also become important.
H&S Law Group, your full service law firm, located at 1719 NJ-10 Suite 224, Parsippany, NJ 07054, represents individuals in New Jersey personal injury matters and many additional practice areas. If you have been injured by a suspected drunk driver, understanding the different sources of compensation can help you make more informed decisions about your claim.
Your PIP Insurance May Pay Your Medical Bills First
New Jersey is commonly described as a “no-fault” state.
This means that Personal Injury Protection, usually called PIP, generally provides coverage for medical expenses resulting from a car accident regardless of who caused the collision.
So even if a drunk driver ran a red light and crashed directly into your vehicle, your own PIP coverage may initially be responsible for eligible medical expenses.
Depending on the policy, PIP may help cover costs associated with treatment from doctors, hospitals, medical providers, and necessary medical equipment. Certain PIP coverage may also provide reimbursement for other accident-related expenses, including some lost wages and household services.
The amount and type of coverage available will depend on the insurance policy involved.
Why Doesn’t the Drunk Driver Automatically Pay Your Medical Bills?
This is one of the most confusing parts of New Jersey car accident law.
People understandably assume that if another driver caused the accident — especially because that person was allegedly intoxicated — the responsible driver’s insurance company should immediately pay all of the victim’s medical expenses.
New Jersey’s insurance system does not necessarily work that way.
PIP is designed to provide payment for certain medical expenses without requiring injured people to first establish who was at fault.
That means the question of who caused the accident and the question of who initially pays medical expenses can be separate issues.
The drunk driver’s responsibility can still become extremely important when pursuing compensation for losses that are not fully covered by PIP.
The Drunk Driver’s Bodily Injury Liability Insurance
The at-fault driver’s bodily injury liability insurance may become another potential source of compensation.
Bodily injury liability coverage generally pays claims brought by people who are injured because of an accident caused by the insured driver. According to the New Jersey Department of Banking and Insurance, this coverage can compensate injured individuals for losses that may include pain and suffering and economic damages such as lost wages.
Depending on the facts of the accident and the insurance coverage available, a claim against the drunk driver may seek compensation for losses such as:
- Pain and suffering
- Lost income
- Reduced earning capacity
- Medical expenses not otherwise covered
- Future medical treatment
- Rehabilitation expenses
- Permanent injuries
- Disability
- Other accident-related financial losses
However, insurance policies have coverage limits.
Even if your damages are significant, the driver’s insurance company generally will not pay more than the available policy limits.
That can create a serious problem when a drunk driving accident causes catastrophic injuries.
What Happens If the Drunk Driver Does Not Have Enough Insurance?
Sometimes the person who caused the accident has insurance, but the policy does not provide enough coverage to compensate the injured person fully.
This is where underinsured motorist coverage, commonly called UIM coverage, may become important.
New Jersey’s Department of Banking and Insurance explains that underinsured motorist coverage can provide protection when the at-fault driver has insurance but carries less coverage than the injured person’s applicable UIM coverage.
For example, imagine that a drunk driver causes an accident resulting in serious injuries.
If the driver’s available liability insurance is not sufficient to cover the damages, the injured person’s own underinsured motorist coverage may potentially provide additional compensation, subject to the policy’s terms and limits.
Because these claims can involve multiple insurance policies and specific coverage requirements, it can be important to carefully review all available insurance.
What If the Drunk Driver Has No Insurance?
An intoxicated driver may also be uninsured.
If the at-fault driver does not have the required insurance coverage, the injured person’s uninsured motorist coverage, or UM coverage, may potentially become a source of compensation.
New Jersey describes uninsured motorist coverage as protection that may pay for bodily injury or property damage when an accident is caused by a driver who does not have required insurance coverage.
Instead of recovering compensation through the uninsured driver’s insurer, the injured person may make a claim through their own applicable policy.
UM claims can still involve disputes over fault, injuries, damages, and the amount of compensation owed.
Having your own insurance company involved does not necessarily mean that the claim will automatically be simple.
What About Lost Wages?
A serious car accident may prevent you from working for days, weeks, or much longer.
Depending on your insurance coverage, certain PIP benefits may provide reimbursement for some lost income.
However, PIP may not necessarily replace every dollar of income that you lose.
Additional lost wages or reduced future earning capacity may potentially become part of a personal injury claim against the responsible driver, depending on the circumstances.
This can be especially important for people who suffer injuries that prevent them from returning to their previous occupation.
Keep documentation showing how the accident affected your income, including:
- Pay stubs
- Tax records
- Employer statements
- Missed work records
- Disability documentation
Self-employed individuals may need additional financial documentation to demonstrate lost income.
Who Pays for Pain and Suffering?
PIP primarily focuses on economic benefits such as medical expenses and certain other losses. It does not operate as compensation for pain and suffering.
A claim against the at-fault driver may potentially seek compensation for the physical pain, emotional impact, and loss of quality of life associated with serious injuries.
However, New Jersey drivers can have different lawsuit options under their automobile insurance policies.
Under New Jersey’s Limitation on Lawsuit option, an injured person generally must meet one of the qualifying injury categories before recovering compensation for pain and suffering. Those categories include certain injuries such as displaced fractures, significant scarring or disfigurement, permanent injury, loss of a body part, loss of a fetus, or death.
A person’s specific insurance policy and injuries therefore matter significantly when determining what compensation may be available.
Does the Drunk Driver’s Arrest Guarantee Compensation?
No.
A drunk driving arrest and a personal injury claim are two different legal matters.
A driver may face DWI-related charges from the government while separately facing a civil claim from someone injured in the accident.
Evidence showing that the driver was impaired can be highly important, but a personal injury claim still requires consideration of issues such as liability, injuries, medical evidence, damages, and available insurance coverage.
A criminal conviction does not automatically cause an insurance company to pay whatever amount an injured person requests.
Keep Detailed Records After the Accident
Strong documentation can make it easier to establish the financial and physical impact of a drunk driving accident.
Consider keeping copies of:
- Medical bills
- Medical records
- Prescription expenses
- Physical therapy records
- Police reports
- Vehicle repair estimates
- Towing bills
- Insurance correspondence
- Lost wage documentation
- Receipts for accident-related expenses
You may also want to document how your injuries affect your daily activities.
For example, you might be unable to exercise, drive, sleep comfortably, perform household tasks, care for your children, or participate in activities you previously enjoyed.
Do Not Assume the First Settlement Offer Is Fair
Insurance companies may attempt to resolve accident claims before the full extent of an injury is known.
An early settlement can be tempting when bills are accumulating.
However, once a claim is settled, the injured person may generally be giving up the ability to seek additional compensation associated with that claim.
Before accepting an offer, it is important to understand the extent of your injuries, anticipated medical treatment, lost income, and possible long-term effects.
A New Jersey Personal Injury Attorney Can Identify Potential Sources of Compensation
Drunk driving accidents can involve several different insurance coverages.
Depending on the circumstances, compensation may potentially come from:
- Your PIP coverage
- The drunk driver’s bodily injury liability coverage
- Your uninsured motorist coverage
- Your underinsured motorist coverage
- Other applicable insurance policies or legally responsible parties
Determining which policies apply and how much coverage is available can become complicated, especially when the accident results in serious or permanent injuries.
A New Jersey personal injury attorney who handles car accident and drunk driving claims can review the available insurance policies, investigate the collision, communicate with insurance companies, and evaluate the damages involved.
Injured By a Drunk Driver in New Jersey?
If you have been injured by a drunk driver, do not assume that you are limited to whatever your health insurance or PIP policy initially pays.
New Jersey’s insurance system may involve several different sources of compensation depending on the facts of the accident and the insurance policies involved.
H&S Law Group is located at 1719 NJ-10 Suite 224, Parsippany, NJ 07054 and assists individuals with personal injury matters in New Jersey.
If you have been injured in a suspected drunk driving accident, speaking with a New Jersey personal injury attorney can help you understand which insurance policies may apply, what compensation may be available, and what steps should be taken to protect your claim.
This article is provided for general informational purposes only and does not constitute legal advice. Every accident, insurance policy, and personal injury claim is different.