Exceptions to Limitation on Liability Insurance Coverage in New Jersey

A standard New Jersey auto insurance policy includes a provision referred to as “Limitation on Liability,” previously known as “Verbal Threshold” insurance.

When you have such a policy, it can significantly limit your ability to sue — or even make a claim — for your pain and suffering.

An injured person should hire a law firm that knows the ins and outs of New Jersey Limitation on Lawsuit insurance policies so you can be fairly compensated for your injuries.

Also, to make sure your accident-related medical care and bills are properly handled, your law firm must know how to handle the NJ Personal Injury Protection (PIP) system and can get your medical bills paid promptly. While emergency room medical treatment and tests do not require pre-certification, many other treatments do.

For NJ insurance companies, profit is the priority and “cost containment” is how they do it. Insurance companies will fight hard to deprive accident victims from getting the care they need by refusing to approve or pay for accident-related medical care. We know how to protect our clients from these profit-driven, unfair insurance company tactics.

Call Ostroff Law for a free consultation. If there’s an exception that will allow you to get a full recovery, we’ll find it.

If you were in an automobile accident and have Limitation on Lawsuit insurance coverage, no insurance company will be on your side. We at Ostroff Injury Law know the ins and outs of the system to make sure your bills get paid and that you are seeing qualified doctors who are capable of verifying the seriousness of your injuries and the necessity of your accident-related medical treatment.

Six New Jersey “Limitation on Lawsuit” Exceptions That May Allow You to Be Fully Compensated for Your Injuries

New Jersey law recognizes specific exceptions to Limitation on Lawsuit coverage that will allow an auto accident victim to fully recover damages for their injuries.

The law allows for six main exceptions that allow you to be fully paid for your pain and suffering. They are:

Permanent Injury

A body part and/or organ will not likely heal to function normally. This includes many neck and back injuries.

Disfigurement or Scarring

Your injuries involved significant disfigurement or scarring.


Most injuries involving broken bones.

Loss of Limb

Your auto accident injuries involved the loss of a body part.

Loss of a Fetus

A pregnant mother lost her unborn baby in the crash.


Your loved one was killed as a result of the automobile accident.

There are a few other exceptions not as well known or publicized as the above six. They include if:

  • If your auto insurance carrier is not authorized or licensed to sell auto insurance within New Jersey and you aren’t a NJ resident;
  • You’re a New Jersey resident, but you were injured in another state, outside of N.J., such as Pennsylvania or Maryland.

These exceptions aren’t as simple as they may appear.  The “permanent injury” exception is complicated. Any part of a person’s body can conceivably be “permanently injured” under NJ law. You need a personal injury law firm experienced in successfully representing clients with “Limitation of Lawsuit” insurance coverage if you want to stop the insurance company from taking advantage of you.

Why Ostroff Injury Law?

Across the Garden State, Ostroff Injury Law has successfully obtained significant financial recoveries for NJ accident victims who have Limitation on Lawsuit insurance coverage. We also know how to make the insurance companies pay for the medical treatment you need for your accident-related injuries. We can recommend qualified doctors who want to help you recover from your injuries. These doctors are also willing to work with us when it comes to proving that your injury is serious enough to overcome the permanent injury exception to Limitation on Lawsuit insurance coverage.

Representing more than 25,000 clients during the past 25 years has given Ostroff Injury Law the knowledge and experience to win in the courtroom or settle an insurance claim for top dollar. The continuing recognition by the legal community, clients and high-profile publications and media (like CNN), is an indication of our commitment to excellence.

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