Personal Injury Protection (PIP) is a foundational component of New Jersey's no-fault auto insurance system, designed to ensure prompt payment for medical expenses and lost wages following a car accident, regardless of fault. However, understanding who exactly is covered under a PIP policy in New Jersey—especially when it comes to household members—requires a closer look at the state’s laws and insurance practices.

What Is Personal Injury Protection in New Jersey?

New Jersey mandates PIP as part of every standard auto insurance policy. PIP covers reasonable and necessary medical expenses, lost income, and essential services if you’re injured in an accident involving a motor vehicle. Policyholders can choose their coverage limits, but the minimum required amount is $15,000 per person per accident, with higher coverage levels available.

PIP applies on a no-fault basis, meaning it pays out even if the policyholder was responsible for the accident. However, who qualifies for these benefits isn’t always straightforward.

Who Is Covered Under Your New Jersey PIP Policy?

In New Jersey, PIP coverage generally extends to:

• The named insured: This is the individual listed on the policy.
• Resident family members: Relatives living in the insured’s household are typically covered, regardless of whether they were riding in the insured vehicle, another vehicle, or were pedestrians at the time of the accident.
• Passengers in the insured vehicle: Non-family members riding in the insured vehicle at the time of the accident are usually covered, but only through the driver’s PIP benefits if they don’t have their own policy.

However, the way coverage extends to household members has nuances. For instance, if a resident relative owns a separate vehicle insured with its own PIP policy, they might need to use their own policy’s PIP benefits first, rather than the driver’s coverage. This concept is known as the “source of coverage hierarchy.”

The Hierarchy of Coverage in Multi-Vehicle Households

New Jersey’s insurance laws prioritize which PIP policy pays out when multiple policies could apply. In a household with multiple vehicles, each insured by separate policies, the injured household member must typically turn to the policy on their own vehicle first. Only if that policy is exhausted—or if the person lacks coverage under another policy—does the household member’s PIP coverage kick in.

For example:

• If your spouse owns a separate insured car and is injured in an accident while driving it, they must claim PIP benefits through their own policy before accessing yours.
• Conversely, if your child lives in your household and does not own a car, they would typically be covered by your PIP benefits if injured in an accident involving a motor vehicle.

This hierarchy aims to prevent duplicate payouts while ensuring injured parties have access to necessary medical and wage loss benefits.

What About Extended Family or Non-Relatives?

PIP coverage in New Jersey is usually limited to immediate family members residing in the household. This includes spouses, children, and other relatives who live under the same roof. Extended family members, such as cousins or siblings who don’t live with you, generally are not covered unless explicitly named on the policy.

For non-relatives living in the household, coverage depends on the specifics of the policy. If the person is a roommate with no familial ties, they are not automatically covered under your PIP policy. However, they might be eligible for PIP benefits from their own insurance or through other sources, such as the vehicle they were in at the time of the accident.

Does PIP Cover Everyone in Your Household in New Jersey?

In summary, PIP does not cover absolutely everyone in your household in New Jersey. Here’s a breakdown:

• Yes: The named insured and resident relatives without their own auto insurance policies.
• Maybe: Relatives with separate vehicles and policies, but only if their own coverage is exhausted.
• No: Non-relatives living in the household without explicit coverage under the policy.

It’s important for households with multiple drivers and vehicles to review their policies carefully and understand how coverage applies to each person. Checking who is explicitly named on your policy and the limits of coverage can prevent surprises in the event of an accident.

How to Ensure Everyone Is Properly Covered Under New Jersey PIP

If you want to ensure that all eligible household members have access to PIP benefits, consider these steps:

• Review your policy details with your insurance provider to confirm who is covered.
• Ensure all resident relatives are listed on the policy, even if they don’t own a vehicle.
• Consider higher PIP coverage limits if your household has multiple drivers or dependents.

Being proactive about your coverage can prevent financial hardship after an accident and provide peace of mind for everyone in your household.

Conclusion

While New Jersey’s PIP system offers broad protection for drivers and their households, it doesn’t extend to absolutely everyone under your roof. Coverage is typically limited to the named insured and resident relatives without their own policies. Non-relatives are generally excluded unless specifically covered. Understanding these distinctions—and planning accordingly—ensures that your household is prepared for any accidents that might occur.

Need Legal Help? Brandon J. Broderick, Attorney at Law is One Phone Call Away

Navigating New Jersey car accident claims can be challenging. Fortunately, you don't need to do it alone. The experienced lawyers at Brandon J. Broderick, Attorney at Law, are available 24/7 to help you understand your legal options, gather necessary evidence, and build a strong case to secure the settlement you deserve.

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