It was announced on August 1st, 2011 that Governor Christie's administration has placed a new bill on the floor to overhaul New Jersey's auto insurance rules that will limit medical expenses for people injured in auto accidents. New Jersey is known to have the second highest car insurance fees in the United States.
Everyone knows that the car insurance rates have been a long standing issue in New Jersey. In fact Car insurance rates were considered one of the reasons that nearly cost Governor Christine Todd Whitman the gubernatorial election back in 1997.97.
This new law will affect Car accident victims. The new plan seeks to streamline medical billings and give the state the ability to challenge what they consider tests that are not evidenced based. Governor Christie is proposing to place new limits on the medical fee schedules which would pay less money to the personal injury doctors. This would in turn lower the personal injury protection (PIP) coverage for New Jersey motorists who are involved in car accidents.
This no fault law will standardize fees paid to same day surgery centers, and reduce costs associated with alternative providers and cut down on attorney fees and use of arbitration to settle coverage claims. It will also change how arbitrators award attorney fees. In 31 percent of arbitrations last year the attorney award was higher than the PIP benefits.
My question is how will this affect the average person injured in a car accident? New Jersey already has a $1,000 deductible for drivers, passengers and pedestrians injured in a car accident. So if you were injured in an accident of no fault of your own, you are already out of a thousand dollars out of your pocket. Now you may have more out of pocket costs because the state has changed things for the insurance companies benefit. Don't get me wrong I do think there has to be some overhaul to the car insurance fiasco in New Jersey. But, in my opinion New Jersey State has always been for the insurance companies and not the everyday people.
New Jersey already has some of the toughest threshold for personal injury in the country. You must have a life debilitating injury in order to proceed with a lawsuit and get any compensation for your injuries. Many attorneys have stopped practicing personal injury in the State of New Jersey because they feel that the laws are not fair to the consumers and just not worth the hassle. It has always been felt that the New Jersey insurance company lobbyist control of the state and not the people.
This new plan, if passed, will help New Jersey consumer lower their rates which is a good thing. I just hope the new plan will not affect the innocent victims of personal injury. If you have been injured in a car accident then you should contact your local personal injury attorney. If you need help finding a personal injury attorney, then please read this article, How to Find a
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