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NJ Personal Injury Protection (PIP) Explained: Limits and the Health Insurer Option

By Save2Insure · Published 2026-10-13

Personal Injury Protection, or PIP, is the part of a New Jersey auto policy that pays for injuries to you and others covered under your policy. This guide summarizes what the New Jersey Department of Banking and Insurance (DOBI) says about it. It is general information, not advice about what to buy.

What PIP is

DOBI describes PIP as "no-fault" coverage because it pays your own medical costs no matter who caused the accident. It has two parts:

• Medical expense coverage: treatment from hospitals, doctors and other medical providers, and medical equipment needed for your injuries.
• Additional PIP coverage: reimbursement for certain other expenses caused by an injury, such as lost wages and the need to hire someone to care for your home or family.

DOBI says you may buy both parts or medical expense coverage only.

Limits

Policy	PIP limit per DOBI
Standard policy	As low as $15,000 per person or accident, as high as $250,000 or more. Up to $250,000 for certain injuries regardless of the selected limit
Basic policy	$15,000 per person, per accident. Up to $250,000 for certain injuries

DOBI also notes that most New Jersey drivers buy $250,000 of PIP, a higher amount than drivers typically buy in other states.

The health insurer option

If you have health insurance, New Jersey lets you designate your health coverage provider as the primary payer for auto-accident injuries. In that case your health insurer pays first and PIP is secondary. DOBI says this may lower the premium, and it lists questions to ask before choosing it:

1. Does your health plan cover injuries from auto accidents? Check with the plan.
2. What are its limits, deductibles, co-payments and pre-certification rules? These apply to accident treatment, and the auto insurer pays only necessary expenses the health plan does not.
3. Medicare and Medicaid cannot be chosen as the primary insurer for auto accidents. They may pay on a secondary basis.
4. If your health coverage is no longer in effect at the time of an accident, the auto insurer pays PIP medical benefits, but DOBI says you must pay an additional $750 deductible.

The choice is made on the Coverage Selection Form when you apply for or renew, and you provide your health plan's name and policy or group number.

Where the choice shows up

PIP limits and the health insurer option appear on the Coverage Selection Form, along with the right-to-sue choice. See our guide to Limited vs Unlimited Right to Sue and the minimum requirements guide.

Sources

• NJ DOBI, Selecting Your Health Insurer for PIP Option
• NJ DOBI, Standard Auto Insurance Policy and Basic policy

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