Most New Jersey drivers have never heard the phrase “verbal threshold.” Most of them also have it on their policy. That combination is why so many injured people are shocked to learn, weeks after a crash, that their right to sue the at-fault driver is limited by a choice they do not remember making.
This guide explains the two lawsuit options under New Jersey’s no-fault law, what each one means after a crash, and how to check which one applies to you. For the broader picture, see our overview of how New Jersey’s no-fault system works.
The two options under N.J.S.A. 39:6A-8
When you buy a Standard auto policy in New Jersey, the Coverage Selection Form asks you to pick one of two tort options:
Limitation on Lawsuit Option (the verbal threshold)
Under N.J.S.A. 39:6A-8(a), you give up the right to sue the at-fault driver for non-economic damages (pain, suffering, inconvenience, loss of enjoyment of life) unless your injury falls into one of six categories:
- Death
- Dismemberment
- Significant disfigurement or significant scarring
- Displaced fractures
- Loss of a fetus
- A permanent injury within a reasonable degree of medical probability, other than scarring or disfigurement
The statute defines “permanent” as an injury to a body part or organ that has not healed to function normally and will not heal to function normally with further medical treatment. Your premium is lower with this option.
No Limitation on Lawsuit Option (the zero threshold)
Under N.J.S.A. 39:6A-8(b), you keep the full right to sue the at-fault driver for pain and suffering for any injury, subject only to ordinary negligence rules. Your premium is higher.
Which one do you have?
Check your declarations page or your Coverage Selection Form. It will say “Limitation on Lawsuit” or “No Limitation on Lawsuit.” Three things to know:
- If you never made a choice, you have the verbal threshold. Under N.J.S.A. 39:6A-8.1, the Limitation on Lawsuit option applies by default when no election is made.
- If you have a Basic policy, you have the verbal threshold and cannot change it. See our guide to the Basic vs. Standard policy.
- The named insured’s choice binds the household. Under N.J.S.A. 39:6A-8.1, the option selected applies to the named insured, their spouse, and resident relatives who do not have their own policy. A teenager or elderly parent living with you is bound by your election.
Where verbal threshold cases are actually fought
Categories one through five are usually clear from the medical records. Category six, permanent injury, is where nearly every contested case lives.
The certification of permanency
To sue under the permanent injury category, a licensed treating physician must sign a certification, under penalty of perjury, stating that you sustained a permanent injury and describing the objective clinical evidence supporting that opinion. The certification must be served within 60 days after the defendant files an answer, though courts may grant an extension for good cause.
Objective evidence
The certification cannot rest on your subjective complaints. It needs objective findings: MRI results showing a herniation or tear, EMG studies, measured range-of-motion deficits, documented spasm on examination. Insurance carriers attack this evidence by arguing the findings are degenerative, pre-existing, or inconsistent with the crash mechanics.
What DiProspero v. Penn changed
Before 2005, courts required plaintiffs to also prove the injury had a “serious impact” on their lives. In DiProspero v. Penn, 183 N.J. 477 (2005), the New Jersey Supreme Court held that the statute contains no such requirement. Meeting one of the six categories, supported by objective evidence, is enough. The companion case Serrano v. Serrano confirmed that the injury need not be “serious” beyond what the category itself requires.
What the verbal threshold does not block
Even under the Limitation on Lawsuit option, you can still recover:
- Uncompensated economic loss, such as lost wages beyond your PIP income continuation benefit
- Property damage to your vehicle, which is never subject to the threshold
- Medical expenses that exceed your PIP limits, which is why knowing your PIP coverage limits matters
The threshold only restricts non-economic damages, and only against the at-fault driver.
The out-of-state driver trap
If you live outside New Jersey but are insured by a carrier that also writes policies here, the Deemer Statute (N.J.S.A. 17:28-1.4) treats your policy as if it included New Jersey PIP and the verbal threshold when you are injured in a New Jersey crash. Drivers from Pennsylvania and New York are routinely caught by this.
Should you switch to the zero threshold?
That is a personal financial decision, but understand what the premium savings buy you. The difference is often modest, and the verbal threshold is the single biggest obstacle to full compensation after a New Jersey crash. If you are reviewing your policy anyway, this is the box worth revisiting, alongside your UM/UIM limits.
How Ibrahim Personal Injury Law handles threshold cases
Our East Brunswick office builds threshold cases from the first appointment: identifying which option applies, coordinating objective diagnostic testing early, working with treating physicians on a defensible certification of permanency, and anticipating the defense medical exam. Jonathan B. Ibrahim’s prior experience inside major insurance carriers means we know how adjusters score these cases before they ever reach a lawyer.
Free consultation, contingency fee. Call (844) 315-4878 or contact us online.
Frequently asked questions
Does a herniated disc meet the verbal threshold in NJ?
It can, under the permanent injury category, if a physician certifies permanency supported by objective evidence such as MRI findings and clinical examination. Whether it will is fact-specific and frequently contested.
Does the verbal threshold apply to pedestrians?
Yes, if the pedestrian is subject to it through their own auto policy or a household member’s policy. A pedestrian with no auto policy in the household is generally not subject to the threshold.
Can I change my lawsuit option after a crash?
No. The option in effect on the date of the accident controls.
What if the certification of permanency is late?
Courts may allow a late certification for good cause, but do not rely on that. Missing the 60-day window can end the pain-and-suffering claim.
