Whether they are heading to the beach, going to the mall, or driving to work, many residents of Philadelphia, Montgomery County, Bucks County, or any of the other counties in the Delaware Valley, spend a great amount of time heading over the water and driving in New Jersey. What many drivers do not realize is, if they are unlucky enough to be injured in a car accident while in New Jersey, their choice of auto insurance company may affect their rights.
As you may be aware, when purchasing auto insurance, both Pennsylvania drivers and New Jersey drivers have a choice between Full Tort and Limited Tort, called “Verbal Threshold” in New Jersey. Both Limited Tort, and Verbal Threshold limit a person’s rights to recover for pain and suffering.
What many people are not aware of is that Pennsylvania residents who have full tort coverage may still be subject to the limits of Verbal Threshold if they are injured in a car accident in New Jersey. This is because New Jersey has a statute, called the “Deemer Statute,” that says any out-of-state driver insured with a company that writes policies in New Jersey is subject to the Verbal Threshold in New Jersey, no matter what they are paying for in their premium.
So if a Philadelphia driver is on vacation with his family at the Jersey shore and they are injured in a car accident, if his insurance company also insures in New Jersey, then he and his family are subject to New Jersey’s limited tort laws. This is the case regardless of the fact that the Philadelphia driver has opted to pay more money for full tort coverage in Pennsylvania.
If you are a resident of Pennsylvania and you spend time driving in New Jersey, research your insurance company to find out if they also insure New Jersey drivers. If they do, and you are paying for full tort coverage to protect you and your family, you may want to reconsider who your auto insurance provider is.
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