VERBAL OR LIMITATION ON LAWSUIT THRESHOLD

What is the Verbal or Limitation on Lawsuit Threshold?

In New Jersey there are different types of automobile insurance policies, and various options one may choose regarding the extent of coverage afforded by those policies.

One option is called the Verbal or Limitation on Lawsuit Threshold option. Choosing this type of coverage severely limits your ability to bring a lawsuit for injuries sustained in an automobile accident. You should not choose this option if you want to maintain your rights to sue for your injuries.

When purchasing automobile insurance, it is important to choose the no limitation on lawsuit option.

By choosing the Verbal or Limitation on Lawsuit Threshold option, you will save a small amount on your insurance premium, but you will severely limit your ability to bring a lawsuit for injuries sustained in an automobile accident. This limitation applies not only to the policy holder, but to all immediate family members (spouse, children and step-children) living in your household.

If you are subject to the limitation on lawsuit threshold, you are not permitted to recover any damages for your injuries unless you prove with objective evidence that the injuries satisfy one of the following criteria:

a) Death;
b) Dismemberment (loss of a body part);
c) Loss of a fetus;
d) Significant disfigurement or significant scarring. Note: Significant refers to the subjective view of an observer, and not the opinion of the injured person;
e) Displaced fracture (simple fractures do not satisfy the threshold unless they cause a permanent injury after healing); or
f) Permanent injury, within a reasonable degree of medical probability.

The verbal threshold is a serious barrier to obtaining fair and reasonable compensation for injuries sustained in motor vehicle accidents. The first five types of injuries occur in only a small percentage of car accidents, and so most claimants will have to prove the sixth criteria on the list above, permanent injury. Insurance companies have become increasingly aggressive in defending these permanent injury cases, and generally force claimants to proceed up to the day of trial before making any settlement offer. Many of the cases must go to trial, increasing costs incurred by the claimants. Doctors are often reluctant, and some even unwilling, to provide the required sworn statements certifying the permanency of an injury, resulting in the dismissal of claims. Doctors who examine claimants for the defendants' insurance company will, almost always, state in reports and testify at trial that the injuries are not permanent.

Frequently, insurance companies will succeed in obtaining a dismissal of a claim by a Judge before it reaches a jury, based only upon documents and medical reports. In short, injured claimants who are subject to the verbal threshold face substantial obstacles to receiving any compensation at all for injuries.

For more information with regard to Verbal Threshold insurance policies, please click on Different Types of Auto Insurance Policies below.