Most drivers in New Jersey are unaware of whether they have selected a Verbal Threshold or a No Threshold option on their insurance policy.
What is a Verbal Threshold or No Threshold? Verbal Threshold limits your right to sue if you are injured in an automobile accident. No Threshold provides that you have no limitation on your right to sue if you are injured in an automobile accident.
If you select the Verbal Threshold, your case can be dismissed by a judge or a jury unless your injuries meet one of the following categories: loss of a body part, significant scaring, a fracture or a permanent injury. A permanent injury is defined as the loss of use of a body function. There is a very large number of cases that have defined what qualifies as a permanent injury.
If you file a lawsuit and have selected the Verbal Threshold on your policy, the defendant’s insurance carrier will likely make a Motion to Dismiss Your Claim for Failure to Meet the Verbal Threshold. A Judge will review the medical records and make a decision whether your case can move forward or whether it should be dismissed for failure to meet one of the above categories of injury. Even if a Judge decides that your case meets the requirements of the Verbal Threshold law, a jury could find that in their opinion you do not meet the requirements. Jurors many times struggle with trying to decide whether an individual’s injury meets the requirements set forth in the jury instructions given to the jury by the trial judge.
Thus, if you want to avoid the limitations and complications of the Verbal Threshold requirements, you should select the No Threshold option. Some insurance carriers will tell you that the No Threshold option is more expensive than the Verbal Threshold. That is correct. Ask your insurance agent what the price difference is between the exact same coverage with a Verbal Threshold option and a No Threshold option. You can then compare and decide which policy you prefer. If the agent won’t giving you the price quote in writing, you should consider finding another agent who is willing to provide you with all the options available in New Jersey.
Some insurance carriers use the words, Limitation Lawsuit, instead of Verbal Threshold to describe a policy which carries the limitations imposed by the Verbal Threshold law.