New Jersey Car Insurance PIP Law Is Here To Stay

New Jersey Auto InsurancePost Date January 9, 2012 – The Garden State has started implementing  a new car insurance regulations. New Jersey Car Insurance PIP, (Personal Injury Protection) went  into effect  on Friday, Jan. 4, 2013 after the state’s Superior Court denied a request for its stay.  The New Jersey Association of Ambulatory Surgery Centers had filed an injunction request for stay before the Appellate Division of the Superior Court on November against the implementation of the New Jersey Car Insurance PIP regulations by the New Jersey Department of Banking and Insurance (NJDOBI). New Jersey’s State insurance regulator had denied the request for a stay prompting them to file for relief in New Jersey Superior Court.

New Jersey Car Insurance PIP Rules Have Changed

The New Jersey Car Insurance PIP regulations were proposed by insurance regulators almost two years ago and have undergone two rounds of public debate. These recent changes on the New Jersey Car Insurance PIP regulations include the removal of codes from fee schedules medical procedures. There has been a request for increase auto insurance rates from numerous New Jersey car insurance carriers.  This is as a result of rising PIP costs. The New Jersey insurance department believes that additional regulations are necessary to somehow control the PIP premiums and to provide consumers with PIP premium relief. NJDOBI is required to evaluate the PIP system in every two years. Aside from putting cap on New Jersey Car Insurance PIP expenses to control the rise of medical costs that insurance companies pay for its policyholders, the new regulations will also task the arbitration panels to ensure that hefty attorneys’ fees in arbitration will be avoided and such fees must match the amount of the arbitration award.


Michael E. Dortch
President &  Senior Agent
Corporate Home Office
618 South Broad Street
Lansdale, Pennsylvania  19446
(800) 807-0762  ext. 206