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New Jersey Deemer Statute

When you purchase car insurance, people typically get the best coverage they can afford. This can include good PIP coverage for medical bills and full tort to help you recover additional money from the at-fault driver. However, if you travel out of state into New Jersey your coverage may be limited. Read below to learn how New Jersey limits the car insurance benefits of out-of-state drivers.

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Traveling To New Jersey

Many people believe their car insurance is the same no matter where they travel in the US. But, different states have different laws to dictate how car insurance coverage works. For out-of-state drivers in New Jersey, a simple trip to the beach could turn into a nightmare.

New Jersey Car Insurance Laws

Drivers who live in New Jersey are required to purchase car insurance. This insurance has a state-minimum option that provides a very small amount of coverage. If a crash in New Jersey involves an out-of-state driver, the out-of state driver’s insurance might be subject to New Jersey rules. This includes limits to claims for pain and suffering related to a car crash.

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The Deemer Statute

In New Jersey, the Deemer Statute dictates that any out-of-state driver and passengers injured in a crash are considered limited tort – IF the insurance company also sells insurance in the State of New Jersey. Even if you pay for a full tort policy in Pennsylvania, you might be considered limited tort in a New Jersey car crash. This limited tort rule can prevent injured people from receiving the compensation they deserve.

Other Side Of The Deemer Statute

The other side of the Deemer statute protects New Jersey residents when at-fault out-of-state drivers have lower coverage. If the out-of-state driver’s insurance also writes policies in NJ, the insurer must provide the NJ state minimum coverage. In some situations, NJ state minimum coverage is greater than the minimum coverage from another state.

While we would argue that this is not a perfect system, the goal of this statute is to reduce claims on the Unsatisfied Claim and Judgment Fund.

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If You Travel To New Jersey

Be aware that your out-of-state coverage may be converted to NJ state minimum car insurance limits. This might prevent or reduce any claim for injuries in the event of a car crash when you travel inside of NJ. The same is true for any passengers in your car at the time of the crash.

If you travel to New Jersey, you might want to investigate if your insurance company also sells insurance in New Jersey. You might want to find an insurance company that does not sell policies in NJ. Even with the Deemer Statute, it may be possible to overcome tort limitations and sue an at-fault driver in New Jersey. An experienced injury attorney will be able to help you explore your legal options.

New Jersey Injury Attorney

Even drivers in New Jersey can be confused about their car insurance coverage. If you have questions about a car accident injury claim, an attorney at Kane & Silverman can help. Kane & Silverman is your trusted personal injury law firm serving people in Pennsylvania, New Jersey, and Maryland. Contact us today for a free case evaluation with a personal injury attorney.