After a car accident, many people assume their medical bills will be fully covered once their case settles. Attorney Steven Goldstein explains that in New Jersey, it's not always that simple. Even with insurance in place, accident victims are often surprised to learn they may still owe money for their care.

New Jersey follows a no-fault insurance system, which means your own Personal Injury Protection (PIP) coverage pays for your medical treatment after a crash—regardless of who caused the accident. These policies can range widely, from $15,000 to $250,000. While that sounds reassuring, serious injuries involving surgeries, MRIs, and months of therapy can quickly exceed lower policy limits.

When medical bills go beyond your PIP coverage, the remaining balance doesn't just disappear. If the at-fault driver has bodily injury liability coverage, those excess medical expenses can be included as part of your settlement claim. However, any money recovered for unpaid medical bills typically must be used to reimburse your healthcare providers. This is an important distinction that many people overlook when evaluating a settlement offer.

Even in cases where your PIP coverage is high enough to cover all treatment, you may still have out-of-pocket costs. New Jersey PIP policies often include co-pays and deductibles, similar to health insurance. For example, you might be responsible for the first portion of your medical bills—sometimes between $1,200 and $2,500—plus a percentage of early treatment costs. While PIP may cover 100% of expenses after a certain threshold, those initial costs still come out of your pocket.

Insurance companies rarely go out of their way to explain these details. Without a clear understanding of how PIP works, accident victims may accept settlements without accounting for what they still owe doctors, surgeons, or therapy providers. This can lead to unexpected financial stress even after a case is resolved.

How an Attorney Can Help Protect Your Financial Recovery

An experienced personal injury attorney plays a critical role in managing medical expenses throughout your case. This includes identifying all available insurance coverage, properly documenting medical bills, and ensuring that excess expenses are included in your claim when appropriate.

Attorneys also work to negotiate medical bills whenever possible. While providers are entitled to payment, reductions can sometimes be achieved, helping you keep more of your settlement. Just as importantly, a lawyer helps you understand your true financial position before you agree to any resolution—so there are no surprises later.

Take Action Today: Protect Your Rights After a Car Accident

If you've been injured in a New Jersey car accident, don't assume your medical bills will be fully covered. Understanding how PIP, co-pays, and settlements work can make a significant difference in your financial recovery. Speak with an experienced attorney to make informed decisions and protect what you're entitled to receive.

FAQs

Will my car insurance cover all my medical bills after an accident in NJ?
Not always. Your PIP coverage pays medical bills up to your policy limit, but you may still owe co-pays, deductibles, or any amount that exceeds your coverage.

What happens if my medical bills are higher than my PIP coverage?
The excess bills can often be included in a claim against the at-fault driver's insurance. However, any recovered funds typically go toward paying those outstanding medical expenses.

Do I have to pay anything if I have a high PIP policy?
Yes. Even with high coverage, most policies include co-pays and deductibles that you are responsible for paying out of pocket.

Can a lawyer help reduce my medical bills after a settlement?
In many cases, yes. Attorneys can negotiate with medical providers to potentially lower the amount owed, helping you retain more of your settlement.