New Jersey Tort Options: Limitation vs. No Limitation on Lawsuit

By the FigureMyTax Editorial Team · How we calculate

Every New Jersey named insured elects in writing one of two tort options: limitation on lawsuit, or no limitation on lawsuit. If the named insured does not elect, the limitation option is deemed elected, and the election covers the named insured and immediate family members in the household.

The two options

N.J.S.A. 39:6A-8 offers (a) the limitation on lawsuit option, which exempts those covered from tort liability for noneconomic loss except for the listed injuries, and (b) the no limitation on lawsuit option, under which they remain liable for noneconomic loss. The second costs more in premium and keeps your full right to sue.

How the election works

Section 39:6A-8.1 requires the election to be in writing, signed by the named insured on the coverage selection form, which must state the percentage difference in premium rates or the dollar savings between the two options. It applies to the named insured and any immediate family member residing in the household who is not a named insured under another policy, and to all automobiles the named insured owns.

The default

If the named insured fails to elect, in writing, either option, the limitation on lawsuit option is deemed elected. An election made for a policy issued or renewed on or after January 1, 1989 continues in renewals and replacement policies until the insurer receives a properly executed form electing the other option.

Why it matters

The option you hold when you are injured decides whether you can claim pain and suffering without proving a listed injury. Read the threshold post for what the limited option requires, and the benefits post for what PIP pays either way.

Using the calculator

Compare both options for your injury in the New Jersey no-fault calculator. If the other driver has little insurance, see New Jersey UM/UIM stacking, and for deadlines see New Jersey statute of limitations.

This is general information, not legal advice, and the state comparisons above are illustrative, not an exhaustive survey. Confirm how New Jersey's rules apply to your specific case with a licensed New Jersey attorney.