No Limitation on Lawsuit option

What is the No Limitation on Lawsuit option?

The No Limitation on Lawsuit option is one of two lawsuit options New Jersey drivers select when purchasing auto insurance. Choosing it preserves the right to sue for pain and suffering after an accident without meeting the verbal threshold.

The alternative, the Limitation on Lawsuit option, restricts pain and suffering claims to six statutory injury categories. No Limitation removes that restriction.

The tradeoff is premium cost. No Limitation coverage generally costs more, since it preserves broader rights the insurer must account for in pricing.

It is available on a Standard Policy but not on a Basic Policy, which carries the verbal threshold regardless of preference.

Why does this single choice matter so much?

Because it determines the entire shape of a future pain and suffering claim before any accident has happened.

Under the Limitation option, even a genuinely painful and disruptive injury may be barred from pain and suffering compensation if it does not fall within one of the six recognized categories.

Under No Limitation, an ordinary negligence analysis applies instead, without that categorical gatekeeping requirement.

Many drivers select Limitation to reduce their premium without fully appreciating what they are giving up, since the choice is typically made quickly during a purchase conversation focused on price.

How do you find out which option you have?

It is stated plainly on the declarations page. Requesting a current copy from your insurer or agent resolves the question in minutes.

Reviewing it at each renewal, rather than only after a crash, is the only way to meaningfully influence what a future claim would look like.

Household policies should all be checked, since coverage from a relative's policy might govern a claim and that policy's selection matters independently.

Does this option affect anything besides pain and suffering?

The lawsuit option specifically addresses non-economic damages. It does not change PIP medical coverage, liability limits or UM and UIM coverage, which are separate selections on the same policy.

It also has no bearing on a claim against a commercial vehicle, a premises owner or another non-auto defendant, where ordinary negligence principles already apply without a threshold.

Common questions

Can I switch to No Limitation after an accident?

No. The option in effect on the date of the accident governs the claim regardless of any later policy change.

Does No Limitation mean I can definitely sue for pain and suffering?

It removes the verbal threshold's categorical requirement, though you must still prove negligence and damages in the ordinary way.

Is No Limitation worth the extra premium?

That depends on your risk tolerance and circumstances, though understanding what you are giving up under the alternative is essential to making an informed choice.