Jan 242014
 

When drivers, passengers or pedestrians are seriously injured in New Jersey car accidents in Marlton, Camden or Cherry Hill, they typically cannot work for a period of time.  In addition to dealing with the stress of the accident, injured motor vehicle victims may also worry about their financial situations.

What injured NJ car accident victims may not know is that they may be able to recover some of their lost wages through their own car insurance companies.

NJ PIP Claims for Medical Bills & Lost Wages

New Jersey is a no-fault state.  That means, regardless of who caused the accident, injured victims make medical claims or PIP claims with their own car insurance policies.   If injured victims purchased “standard” auto policies, they may also receive lost wages as part of the PIP benefits.  If injured victims have “basic” auto policies, lost wages benefit is not included as part of the PIP benefits.

When NJ drivers purchase “standard” policies, they have different choices with regard to their PIP coverage.  Policy holders have the option of choosing various amounts of medical coverage: $250,000, $150,000, $75,000, $50,000 or $15,000.  If policy holders do not choose one of these options, the insurance policy will automatically default to $250,000 in medical coverage. See Injured in a NJ Car Accident? – The Basics of Medical Benefit (PIP) Claims

Pursuant to the New Jersey “No Fault” statute, N.J.S.A. 39:6A-1, et seq, injured insureds may receive other PIP benefits, in addition to medical benefits, such as:

  • lost wages, aka income continuation,
  • essential services,
  • survivor benefits, and
  • funeral expenses.

Though the above 4 PIP benefits are optional, the insurance company must offer them to their insureds.

NJ PIP Benefits – Lost Wages

If injured drivers have income continuation as part of their PIP benefits, they may recover lost income pursuant to N.J.S.A. 39:6A-4(b), which states:

Income continuation benefits. The payment of the loss of income of an income producer as a result of bodily injury disability, subject to a maximum weekly payment of $100.  Such sum shall be payable during the life of the injured person and shall be subject to an amount or limit of $5,200, on account of injury to any one person in any one accident, except that in no case shall income continuation benefits exceed the net income normally earned during the period in which the benefits are payable.

It is important to note that New Jersey drivers may purchase a higher income continuation benefit, which pays more than $100 a week.

In order to receive income continuation benefits, injured insureds must first provide written notice of loss to their car insurance companies. The insurance company will require forms to be filled out and supporting documentation for lost wages, including an employer wage verification.

There are certain situations where weekly payments or income continuation benefits are setoff of  other benefits, such as state temporary disability or workers’ compensation payments.  Click here to continue to part 2 of the article which discusses these types of situations.

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.