Limitation on Lawsuit option

What is the Limitation on Lawsuit option?

The Limitation on Lawsuit option, commonly called the verbal threshold, is one of two lawsuit choices New Jersey drivers select on their auto policy, restricting the right to sue for pain and suffering after a crash.

Under this option, recovering non-economic damages requires proving the injury falls into one of six specific statutory categories, regardless of how much pain the injury actually causes.

The alternative, the No Limitation option, preserves the unrestricted right to sue but costs more in premium.

Most New Jersey drivers select the Limitation option because of the premium savings, often without fully understanding what they are giving up.

What are the six qualifying categories?

An injury must fall into one of these to clear the threshold under this option.

• Death
• Dismemberment
• Significant disfigurement or significant scarring
• A displaced fracture
• Loss of a fetus
• A permanent injury within a reasonable degree of medical probability, other than scarring or disfigurement

What does permanent injury require?

A body part or organ that has not healed to function normally and will not heal further with further medical treatment, established through objective medical evidence rather than reported pain alone.

New Jersey also requires a physician's certification of permanency, filed within a specific deadline after the defendant's answer, or the claim can be dismissed regardless of the injury's actual severity.

This procedural requirement catches people who assume a strong medical case alone is sufficient, without realizing a separate filing deadline applies.

How is this option identified and challenged?

The declarations page states which option was selected, which is why it is requested before any other document in a New Jersey auto case.

Meeting the threshold typically requires imaging showing the specific injury, often combined with radiculopathy confirmed on nerve testing, and a physician's opinion on permanency stated to a reasonable degree of medical probability.

Insurers frequently dispute whether an injury qualifies, particularly for soft tissue injuries and less dramatic imaging findings such as a bulging disc rather than a clear herniation.

Common questions

How do I know which option I have?

Check your declarations page, or request a copy from your insurer if you cannot locate it. It states clearly which option was selected.

Does this option affect my ability to recover medical bills?

No. It specifically restricts non-economic damages such as pain and suffering. Economic damages including medical bills and lost wages are not affected by this threshold.

What if my injury does not clearly fit one of the six categories?

This is where these cases are most heavily litigated. Strong objective medical evidence and a clear permanency opinion are essential to overcoming a dispute about whether the threshold is met.