When you buy car insurance in New Jersey, you face a critical choice: limited tort or full tort coverage. This decision directly affects your right to sue for pain and suffering if you’re injured in an accident. Understanding the difference between these two options saves you from surprises. While often called ‘Limited Tort’ (a Pennsylvania term), the official New Jersey legal term is ‘Limitation on Lawsuit’ (or the ‘Verbal Threshold’). This distinction matters because New Jersey’s specific rules—not Pennsylvania’s—will decide your case.
What Limited Tort and Full Tort Mean in Plain English
Limited tort and full tort are two different insurance coverage options that determine what you can recover if you’re injured in a car accident in New Jersey. Think of them as two different levels of protection.
With limited tort (officially called “Limitation on Lawsuit” and informally known as “verbal threshold” in New Jersey), you accept lower insurance premiums in exchange for restrictions on your right to sue for pain and suffering. You can still recover your medical bills and lost wages, but you can only sue for pain and suffering if your injury meets a serious injury threshold defined by New Jersey law.
With full tort (officially called “No Limitation on Lawsuit” and informally known as “zero threshold” in New Jersey), you pay higher insurance premiums but gain the unlimited right to sue for pain and suffering, regardless of how serious your injury is. Even a minor injury gives you the right to pursue a personal injury lawsuit for non-economic damages.
- Limited Tort: Lower premiums, restricted lawsuit rights (serious injury threshold applies)
- Full Tort: Higher premiums, unlimited lawsuit rights (no threshold applies)
The “Limitation on Lawsuit” Threshold Explained
The term “limitation on lawsuit” refers to New Jersey’s serious injury threshold. This threshold is the legal barrier you must cross to sue for pain and suffering when you have limited tort coverage.
New Jersey law defines serious injury through specific exceptions. If your injury falls into one of these categories, you can sue for pain and suffering even with limited tort coverage. These exceptions include:
- Death
- Dismemberment or loss of a body part
- Loss of a fetus
- Significant disfigurement or scarring
- Displaced fractures
- Permanent injury to an important body function
If your injury doesn’t meet one of these exceptions, you’re limited to recovering economic damages (medical bills and lost wages) under a limited tort policy. This is what “limitation on lawsuit” means in practical terms—your right to sue is limited unless your injury is serious enough to qualify. Under New Jersey’s Automobile Insurance Cost Reduction Act, these thresholds are strictly defined.
What You Can Recover Under Limited Tort
Understanding what you can and cannot recover is essential when evaluating limited tort coverage.
Your own PIP (Personal Injury Protection) coverage pays your medical bills first, regardless of fault. However, you can sue the at-fault driver for any economic losses that exceed your PIP limits, such as lost wages not fully covered by your policy or future medical costs. The Limitation on Lawsuit selection does not block these financial claims.
Non-economic damages (also called pain and suffering damages) are restricted under limited tort. These damages compensate you for physical pain, emotional distress, loss of enjoyment of life, and other subjective harms. With limited tort, you can only recover non-economic damages if your injury meets the serious injury threshold. With full tort, you can recover non-economic damages for any injury, no matter how minor.
This distinction matters significantly. A minor injury might result in $5,000 in medical bills but $50,000 in pain and suffering damages. With limited tort, you’d recover the $5,000 but lose the $50,000 unless your injury qualifies as serious. Understanding how to calculate pain and suffering damages can help you evaluate your case.
Why Limited Tort Costs Less (And What You’re Trading Away)
Insurance companies offer limited tort at lower premiums because it reduces their financial risk. When fewer people can sue for pain and suffering, insurance companies pay out fewer claims and smaller settlements. They pass these savings to policyholders in the form of lower premiums.
The trade-off is straightforward: you save money on insurance premiums today in exchange for potentially losing the right to recover pain and suffering damages if you’re injured tomorrow. For some drivers, this trade-off makes sense. For others, it doesn’t.
A driver who rarely drives and has an excellent safety record might reasonably choose limited tort to save on premiums. A driver who commutes daily in heavy traffic faces higher accident risk and might prefer full tort to protect their right to full recovery if an accident occurs. If you’ve been injured, understanding your car accident settlement options is critical.
When You Can Still Sue With Limited Tort
The serious injury threshold isn’t an absolute barrier. New Jersey law recognizes that some injuries are serious enough to warrant the right to sue, even with limited tort coverage.
If you suffer a displaced fracture—a bone break where the pieces move out of alignment—you meet the threshold. Displaced fractures typically require surgery and extended recovery, justifying the right to sue for pain and suffering. These injuries often result in significant medical expenses that insurance must cover.
A permanent injury to an important body function also qualifies. This includes permanent nerve damage, chronic pain conditions, loss of mobility, or any injury that permanently impairs a significant bodily function. Under New Jersey law, the injury must be permanent within a reasonable degree of medical probability. Proving a permanent injury requires more than just medical records. Under NJ law, your doctor must sign a sworn Physician Certification stating under penalty of perjury that your injury is permanent. This document must be filed within 60 days of the defendant answering your lawsuit. Missing this strict deadline can kill your case, even if you are legitimately injured. The injury must be permanent, not temporary.
Significant disfigurement or scarring meets the threshold when the scarring or disfigurement is substantial and visible. Minor scars typically don’t qualify, but severe facial scarring or disfigurement that affects appearance would. These cases often involve personal injury claims for significant compensation.
Death, dismemberment, and loss of a fetus are clear-cut exceptions. These catastrophic injuries always allow recovery for pain and suffering, even with limited tort. If you’ve experienced such a loss, wrongful death claims may apply.
There is one major exception that has nothing to do with your injury: The Commercial Vehicle Exception. If you are hit by a commercial truck, a taxi, or a vehicle that doesn’t carry PIP coverage (like an out-of-state driver), the Limitation on Lawsuit does not apply. You automatically regain your right to sue for full pain and suffering, even if you selected the limited option on your own policy. An attorney can evaluate your injury and determine whether you meet the threshold.
Why Choose Brach Eichler Injury Lawyers for Your Limited Tort Case
Brach Eichler Injury Lawyers has recovered over $700 million for injured clients across New Jersey. Our attorneys understand limited tort law inside and out, and we know how to build strong cases that meet the serious injury threshold.
We’ve earned recognition as Best Lawyers 2024 and Chambers Top Ranked 2024 for our work in personal injury law. Our clients rate us 4.9 out of 5 stars based on over 5,900 reviews. We’re members of the American Association for Justice Leaders Forum and the Best Attorneys of America Lifetime Charter.
We work on a contingency fee basis, which means you pay nothing unless we win your case. We handle all legal work, investigations, and negotiations so you can focus on recovery. With offices across New Jersey—including Roseland, Paramus, Jackson, New Brunswick, Jersey City, Clifton, Newark, Elizabeth, Trenton, and Toms River—we’re accessible when you need us. View our case results and settlements to see how we’ve helped injured clients recover compensation.
Limited Tort vs. Full Tort: Which Should You Choose?
Choosing between limited tort and full tort depends on your personal situation, driving habits, and risk tolerance.
Choose limited tort if: You drive infrequently, have an excellent driving record, live in a low-traffic area, and want to minimize insurance costs. The lower premiums make sense if your accident risk is genuinely low.
Choose full tort if: You commute daily, drive in heavy traffic, have a longer commute, or want maximum protection. The higher premiums provide peace of mind that you’ll recover fully if an accident occurs, regardless of injury severity. If you’re injured, New Jersey car accident lawyers can help you understand your coverage.
Consider your financial situation: If you couldn’t afford significant out-of-pocket medical costs, full tort provides better protection. If you have substantial savings and can cover medical expenses, limited tort might be acceptable.
Think about your family: If you have dependents who rely on your income, full tort protects your family’s financial security better than limited tort.
Frequently Asked Questions About Limited Tort in New Jersey
What does “limitation on lawsuit” mean in New Jersey?
“Limitation on lawsuit” refers to the serious injury threshold in New Jersey’s limited tort system. It means your right to sue for pain and suffering is limited unless your injury meets specific legal criteria defined by state law. This is codified in N.J.S.A. 39:6A-8.
Can I sue for pain and suffering with limited tort?
You can sue for pain and suffering with limited tort only if your injury meets the serious injury threshold. This includes death, dismemberment, loss of a fetus, significant disfigurement or scarring, displaced fractures, or permanent injury to an important body function. An experienced personal injury attorney can evaluate whether your injury qualifies.
What counts as a “serious injury” under New Jersey law?
New Jersey defines serious injury through six specific exceptions: death, dismemberment or loss of a body part, loss of a fetus, significant disfigurement or scarring, displaced fractures, and permanent injury to an important body function. Your injury must fall into one of these categories to qualify. The New Jersey Court Rules provide additional guidance on these definitions.
How much does limited tort save on insurance premiums?
Premium savings vary by insurance company and your driving record, but limited tort typically saves 10-15% on car insurance premiums compared to full tort. Some companies offer larger discounts. Contact your insurance agent for specific quotes.
Can I switch from limited tort to full tort?
Yes, you can switch from limited tort to full tort at any time. You’ll pay higher premiums going forward, but the change takes effect immediately. Contact your insurance company to make the switch.
What if the other driver was uninsured?
If the at-fault driver was uninsured, your uninsured motorist coverage applies. This coverage typically isn’t subject to the limited tort restriction, allowing you to recover pain and suffering damages regardless of the serious injury threshold. Uninsured motorist claims require careful documentation.
Do I need a lawyer for a limited tort claim?
You don’t legally need a lawyer, but having one significantly improves your outcome. An attorney can evaluate whether your injury meets the serious injury threshold, work with insurance companies, and pursue a lawsuit if necessary. Most injury lawyers work on contingency, so you pay nothing unless you win. Contact Brach Eichler for a free consultation today.
Get Help Understanding Your Insurance Options
If you’re unsure whether limited tort or full tort is right for you, or if you’ve been injured in an accident and need to understand your coverage options, Brach Eichler Injury Lawyers can help. Our attorneys provide free consultations to evaluate your situation and explain your rights.
Call (973) 364-8300 today to speak with an injury lawyer. We serve all of New Jersey and work on a contingency fee basis—you pay nothing unless we recover compensation for you.
Related Posts
- Understanding New Jersey No-Fault Insurance Laws
- How Much to Ask for in a Personal Injury Settlement
- Who Pays for Medical Bills After a Car Accident?
- New Jersey Car Accident Injury Compensation Guide
We are the trial attorneys with the experience and knowledge to get you the results you deserve. At Brach Eichler Injury Lawyers, we take time to get to know you, as well as your case. We are committed to excellence. It is important for our team to understand your fears, concerns and expectations. We are always available to answer any questions, and are willing to come to you if you are unable to come to us.
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