If you’ve been injured in a car accident in New Jersey, one of the first and most confusing questions you’ll face is:
“Who pays my medical bills?”
The answer often surprises people.
In most cases, it’s your own insurance company — even if the other driver was at fault.
That’s because New Jersey is a “no-fault” insurance state, and the part of your policy that handles medical expenses is called Personal Injury Protection, or PIP coverage.
What Is PIP Coverage?
Personal Injury Protection (PIP) is a mandatory part of every standard New Jersey auto insurance policy.
It’s designed to pay for your medical treatment if you’re injured in a car accident — regardless of who caused the crash.
PIP is a core part of New Jersey’s no-fault system, created to make sure that injured people get the medical care they need quickly, without waiting for lawsuits or fault determinations.
What Does PIP Cover?
PIP coverage in New Jersey can include:
- Medical treatment (emergency care, surgery, hospital bills, follow-ups)
- Diagnostic testing (X-rays, MRIs, CT scans)
- Prescription medication
- Rehabilitation and physical therapy
- Lost wages (if you add income continuation benefits)
- Essential services (help with household chores you can’t perform due to injury)
- Funeral expenses (in fatal accidents)
The standard policy provides up to $250,000 in medical coverage, though you can choose lower limits when buying your policy.
Who Pays First — and Why?
In New Jersey, PIP benefits are primary for medical expenses in motor vehicle accidents. That means your own insurance company pays your medical bills first, even if:
- Another driver caused the crash,
- You were a passenger, or
- You were injured as a pedestrian or bicyclist (depending on circumstances).
This system was designed to:
- Ensure prompt medical treatment,
- Avoid disputes between insurance companies, and
- Keep injury cases from clogging the court system.
Once your medical care is paid through PIP, fault still matters later for purposes of recovering pain and suffering or other damages through a personal injury claim.
What If You Don’t Own a Car or Insurance Policy?
If you don’t have your own insurance policy, coverage may come from:
- A household family member’s auto policy — if you live with someone who has one,
- The vehicle you were riding in — if you were a passenger, or
- NJPLIGA — if you have no coverage of your own and live with no one who does.
Under the New Jersey Property-Liability Insurance Guaranty Association (NJPLIGA), you may still qualify for up to $250,000 in medical benefits through the state’s safety-net program.
This ensures every accident victim in New Jersey can get medical care, even if uninsured.
What If You Have Health Insurance Too?
Some policies allow you to choose your health insurance as the primary payer for medical bills, in exchange for a lower premium.
If you selected that option, your health insurer will pay first, and PIP may cover what’s left over — but only if your health plan doesn’t cover certain costs.
That’s why it’s critical to review your insurance declaration page or talk to your agent before an accident happens — or your attorney after one does.
What About Passengers, Pedestrians, and Cyclists?
PIP isn’t just for drivers. It can apply to others injured in auto-related crashes:
- Passengers use the PIP coverage of the car they were in.
- Pedestrians or bicyclists may be covered by their own PIP policy, a household member’s policy, or NJPLIGA if no insurance applies.
- Motorcyclists are not covered by PIP — but passengers in cars are.
How PIP Works With Fault and Lawsuits
PIP pays your medical bills quickly, but it doesn’t prevent you from pursuing a claim against the at-fault driver.
You can still recover compensation for:
- Pain and suffering,
- Lost income beyond PIP limits,
- Permanent injury, and
- Other losses.
However, your right to sue may depend on which policy option you selected — the “limitation on lawsuit” or “no limitation on lawsuit” threshold.
A personal injury lawyer can review your policy and explain which category you fall into.
Why Having a Lawyer Helps
Understanding PIP rules and coverage priorities can be confusing — especially when you’re hurt and dealing with insurers who may deny or delay bills.
An experienced attorney can:
- Make sure your medical bills are properly submitted and paid under PIP,
- Coordinate between PIP, health insurance, and NJPLIGA if needed,
- Handle disputes over denials or cut-offs, and
- Pursue the at-fault driver for additional compensation.
The Bottom Line
In New Jersey, your own PIP coverage pays your medical bills first, no matter who caused the crash.
It’s designed to protect you and make sure you get care right away — but navigating the system can be tricky, especially when insurers push back.
If you’ve been injured in a car accident, don’t guess about who should pay your bills.
Talk to a personal injury lawyer who understands New Jersey’s PIP laws and can protect your rights from day one.
