Jan 242014
 

New Jersey auto insurance law can be very confusing, and policy holders who do not know or understand their car insurance benefits may not be receiving all of the benefits they are eligible for.

New Jersey drivers in Cherry Hill, Marlton and Camden who have “standard” auto insurance policies may have optional PIP coverage, which includes income continuation benefits.  In other words, they may be able to recover lost wages from their car insurance companies.  However, the drivers must have opted for this additional PIP coverage when purchasing the car insurance policies. For a detailed discussion, see part 1 of this article: How to Recover Lost Wages After a New Jersey Car Accident (Part 1)

Part 2 of this article will discuss how much the insured may receive.

How Much Lost Income Payments Can an Injured NJ Driver/Passenger Receive?

Pursuant to NJ auto insurance law, an injured driver/passenger who is entitled to income continuation benefits as a result of injury-related disability may receive weekly payments, up to the limit of the benefits.

The default weekly payment is $100, and that benefit is capped at $5,200.  Drivers may choose a higher income continuation benefit at a higher premium.

If an injured driver has the default income continuation coverage, he will receive $100 a week and continue to receive this amount (up to the capped limit) as long as he is injured and disabled from working.  It is important to note that receiving PIP benefits for lost wages is not a prerequisite to filing a NJ car accident lawsuit. An injured driver can receive PIP benefits and simultaneously file a lawsuit against the at-fault driver and include lost wages as part of the damage claim in the lawsuit.

However, if the injured driver only earns $80 a week, he will not receive the $100 weekly payment despite the fact that he paid the same premium as someone who is eligible for the $100 weekly payment.  He will only receive $80 a week.  On the other hand, if the injured insured makes more than $100 a week, he can only receive $100 a week.  Again, the injured insured can file a lawsuit against the at-fault driver to recover the lost wages that were not covered by the income continuation benefits.

New Jersey’s auto insurance law is very confusing.  If you are injured in a South Jersey car accident, it is advisable to seek legal counsel to ensure that you are receiving all of the benefits you are entitled to.  In addition, an experienced car accident injury lawyer can help you make an informed decision about filing a New Jersey car accident lawsuit.

Related: NJ Car Accident Law – Who Can Make PIP Claims, Explained by a NJ Car Accident Lawyer for 35+ Years.

FREE Initial Legal Consultation After a Car Accident in Cherry Hill, Camden or Marlton, NJ

Philip Ciprietti, Esquire has been helping car and other auto related accident victims in NJ for over 35 years.  Mr. Ciprietti will help you recover the compensation, including lost wages, you are entitled to after a car accident.  Mr. Ciprietti always offers a free initial consultation.  800. 281.8695

*Disclaimer: Every case is unique and you should not take any action or make decisions in your case without speaking to a qualified car and truck accident lawyer in New Jersey. This website page does not provide legal advice or create an attorney-client relationship. Use of the contact form on this website or emailing Mr. Ciprietti does not create any attorney-client relationship. In addition, confidential information should not be sent through the contact form.