Car Insurance

FAQ about the Verbal Threshold in New Jersey Car Insurance

When most people shop for car insurance, their main concern is price. After all, car insurance is never something you want to use, and at the time you are buying insurance, you are not expecting to be involved in a serious accident.  As a result, many drivers choose the cheapest options available in their policy, including selecting a “verbal threshold” policy over a “no threshold” policy without fully understanding what that means. Unfortunately, saving a few dollars on your monthly premium by choosing a verbal threshold policy can mean significant losses later. Below we have answered some of the more frequently asked questions regarding verbal threshold and no threshold policies.

What is the Difference?

If you have a no threshold policy, there is no restriction on your right to file a lawsuit after an accident. You can pursue non-economic (personal injury) damages such as physical and emotional pain and suffering. If, on the other hand, you have a verbal threshold policy, your ability to sue after an accident is limited – in order to file a lawsuit for non-economic damages, your injuries must fall into certain categories, including permanent injury, amputation, significant disfigurement, or a displaced fracture.

Non-economic damages can be significant, so whether or not you select the verbal threshold or the non-verbal threshold can make a significant difference in your ability to recover compensation.

Why does this Distinction Exist?

Before the enactment of the law establishing the verbal threshold and no threshold insurance policies, a dollar-amount limit determined whether a driver could sue after an accident. As a result, accident victims were incentivized to seek additional (and sometimes unnecessary) medical treatment in order to get their medical bills above the limit so that they could pursue non-economic damages.  By changing the monetary threshold to a verbal threshold (verbal, due to the reliance on the description of the injuries), the legislature eliminated the incentive for accident victims to seek additional treatment.

Call Today for More Information!

If you have been injured in a car accident, you should explore your legal options with an experienced personal injury attorney as soon as you can. Our attorneys are dedicated to helping our clients recover the compensation they are owed. To schedule a consultation regarding your case, call attorneys, Esq. or Steven L. Fox, Esq. at Borrus, Goldin, Foley, Vignuolo, Hyman & Stahl, P.C. today at 732-422-1000 or send us an email through our online contact form.