Myth-Busting Mondays: Common misconceptions about car accident claims and insurance in New Jersey

On Behalf of | Jan 29, 2025 | Car Accidents

Car accident claims and insurance processes can be confusing, leading to common myths that cause unnecessary stress. Misinformation can result in costly mistakes when handling an accident claim. Let’s debunk some common misconceptions to help you make informed decisions.

Myth: You must give a recorded statement to the insurance company

Insurance companies may request a recorded statement, but you are not required to provide one. Adjusters may use your words against you to reduce or deny your claim. Instead, provide necessary information without making official statements that could be misinterpreted.

Myth: The at-fault driver’s insurance will cover all costs

New Jersey follows a no-fault insurance system, meaning your own personal injury protection (PIP) covers medical expenses regardless of who caused the accident. Only in some instances can you pursue a claim against the at-fault driver’s insurance for additional damages.

Myth: You don’t need to report minor accidents

Even if an accident seems minor, reporting it is important. Some injuries and damages may not be immediately apparent. Failing to report the accident could complicate any future claims.

Myth: Insurance will automatically offer a fair settlement

Insurance companies aim to minimize payouts. The first settlement offer is often lower than what you may be entitled to receive. Reviewing the offer and understanding your coverage can help ensure you receive fair compensation.

Myth: If you are partially at fault, you can’t recover damages

New Jersey follows a comparative negligence rule, meaning you can still recover damages if you are less than 50% responsible for the accident. However, your percentage of fault will reduce your compensation.

Understanding the truth can help you protect yourself

Misinformation about car accident claims and insurance can lead to costly mistakes. Knowing your rights and how the process works can help you handle claims more effectively.