In the aftermath of a motor vehicle accident, injury victims face medical challenges, financial struggles, and a host of legal complexities. One thing that they justifiably depend on is prompt payment from insurance companies to help them deal with property losses, vehicle damage and the steep costs of a personal injury.

Many consumer advocates, physicians, and Accident Lawyers have expressed worries about recent reforms of New Jersey’s personal injury protection (PIP) auto insurance. The overhaul comes due to concerns about escalating costs, given that New Jersey automobile insurance premiums are among the highest in the country.

PIP coverage pays for medical expenses that result from car, Motorcycle Accident, or Truck Accidents, and are triggered without respect to who was at fault in the accident.

With a maximum benefit of $250,000, PIP coverage can provide significant protection in the event of an accident with an Uninsured or Underinsured Motorist. The maximum coverage is the default option under New Jersey law, but motorists can opt for PIP coverage as low as $15,000 per person per accident.

New Jersey’s New PIP Rules, which went into effect on Nov. 5, 2012, provide new caps on the amount of reimbursement for many specific medical procedures, a development that could cause medical practices to begin refusing to take PIP claims.

The new fee schedules expand the list of price codes for covered procedures by 40 percent, bringing the full list to nearly 2,500 health care procedures involving everything from spinal injuries to chiropractic care.

Although capping reimbursement rates is intended to limit costs to insurance companies, it also limits the ability of health care providers to arbitrate disputes over the amount they should receive for treating car accident victims.

Despite the extensive changes to PIP coverage, officials from the New Jersey Department of Banking and Insurance have suggested that this will not result in immediate reductions to auto insurance premiums, but will only slow or halt further increases.

Maximizing Compensation for Car/Truck Accident Victims

While insurance coverage is a crucial part of the recovery of the costs incurred due to a motor vehicle accident, it is not the only source of compensation for people who suffer severe Injuries.

A New Jersey personal injury attorney can explain the importance of identifying all of the potentially liable parties, from employers to manufacturers of defective parts, to help clients obtain compensation for all present and future losses due to a serious injury or wrongful death.