The Lawsuit Threshold in South Jersey

Unless you pay an extra fee, the standard provisions in New Jersey Auto Insurance policies substantially restrict your right to sue a negligent driver in the event of a car crash. Many, if not the majority, of injured individuals are unaware that the so called “full coverage” in their insurance policy in fact limits the right to sue negligent drivers unless the person insured also selected the “No Threshold” option for their policy. Passed after lobbying by insurance companies, the “Lawsuit Threshold”, also known as the “Verbal Threshold” or “Limitation On Lawsuit Threshold”, prohibits recovery for pain and suffering unless you prove that you have sustained one of a specific category of injury, including:

• Death
• Dismemberment (loss of arms, legs, fingers, or toes)
• Significant Disfigurement or Significant Scarring
• Displaced Fracture (broken bone)
• Loss of a Fetus (unborn child)
• Permanent Injury

The first five injury types are self-explanatory. However, “Permanent Injury” is not which becomes the most common contested issue. Permanent Injury is defined as an injury supported by objective medical evidence where “the body part or organ, or both, has not healed to function normally and will not heal to function normally with further medical treatment” and requires certification by a physician that the injury is in fact permanent. Clients often say, “Well, my injury is permanent.” Insurance companies hire doctors to conclude that there is no permanent injury, thereby requiring a jury trial to decide the permanency issue. This results not only in the frequent denial of claims, but also prolongs cases and requires trials since some insurance companies have a policy to dispute and go to trial in all “threshold” cases.

At HYBERG, WHITE & MANN we are experienced in knowing what factors and evidence are utilized in evaluating whether individual cases are compensable under the “Lawsuit Threshold.” Call us at 609-407-1000 to schedule a free consultation where we will guide you through the issues of the Lawsuit Threshold legal maze and advise you of your options.