As Fall begins, and as many people shift from working at home back into the office, the roads across South Jersey and the Greater Philadelphia region are getting busier. More congestion tends to mean more accidents — and one of the best ways to protect yourself is simply understanding your auto insurance policy before you need it.

As your attorneys, helping clients make sense of situations like this is core to what we do. Auto insurance is something almost everyone carries but few people fully understand, so we’ve put together this primer covering the essentials for both Pennsylvania and New Jersey drivers, since our clients live and drive throughout the region.

Pennsylvania Drivers

Pennsylvania is a “choice no-fault” state, meaning your own insurer generally covers your medical costs after an accident regardless of who was at fault — but you also choose, upfront, how much right you retain to sue for pain and suffering.

Limited Tort vs. Full Tort. Limited Tort costs less but restricts your ability to sue for pain and suffering unless your injury is serious (such as death, permanent disfigurement, or permanent loss of a bodily function). Full Tort preserves your right to sue for pain and suffering regardless of injury severity, at a higher premium. A waiver form is utilized to select your designation as Full Tort or Limited Tort.

First-Party Medical Benefits. Pennsylvania’s equivalent to PIP is also called “First-Party Benefits.” Every policy must include at least $5,000 in first-party medical coverage, which pays for your own injuries regardless of fault — worth thinking about whether $5,000 is enough coverage for you.

Bodily Injury Liability. Pennsylvania’s minimum is $15,000 per person and $30,000 per accident. Given how quickly medical costs and lost wages can exceed these minimums in a serious accident, many drivers choose to carry more.

Uninsured/Underinsured Motorist Coverage. Pennsylvania does not require UM/UIM coverage — but the law requires that insurers must offer it, and you must sign a written waiver to decline it. Given Pennsylvania’s relatively low mandatory liability minimums, UM/UIM coverage is worth serious consideration.

New Jersey Drivers

New Jersey is also a “choice no-fault” state, but its terminology and minimums differ from Pennsylvania’s.

Verbal vs. Zero Threshold. This is New Jersey’s version of the threshold choice, sometimes called “Limited Tort” or “Limitation on Lawsuit” (Verbal Threshold) versus “Full Tort” or “No Limitation on Lawsuit” (Zero Threshold). Under a Verbal/Limited Threshold policy, your right to sue for pain and suffering is restricted unless your injury meets certain legal thresholds — but the tradeoff is a lower premium. A Zero/Full Threshold policy costs more but preserves your full right to sue for any injury, however minor.

Personal Injury Protection (PIP). PIP is mandatory no-fault coverage that pays your medical expenses and lost wages after an accident, regardless of fault. New Jersey requires a minimum of $15,000 in PIP coverage (unless you qualify for a special Medicaid option) — notably higher than Pennsylvania’s First-Party Benefits minimum. If you don’t have separate health insurance, it’s worth considering coverage above the minimum.

Bodily Injury Liability. This covers injuries you cause to others in an at-fault accident — their medical expenses, lost wages, and pain and suffering. As of January 1, 2026, New Jersey’s standard-policy minimum increased to $35,000 per person and $70,000 per accident — meaningfully higher than Pennsylvania’s. Generally, the more assets you have to protect, the more liability coverage makes sense.

Uninsured/Underinsured Motorist (UM/UIM) Coverage. Unlike Pennsylvania, New Jersey requires UM/UIM coverage. This protects you if you’re hit by a driver with no insurance, or one whose coverage isn’t enough to cover your damages. For example, if you’re injured by a driver carrying only $35,000 in bodily injury coverage but your damages exceed that, UM/UIM coverage lets you pursue the difference — up to your own policy’s UM/UIM limit — from your own insurer.

Summary Points

• Review your policy every year. Your coverage needs may have changed, and it’s easy to forget what you originally selected.
• Know your state’s minimums are just that — minimums. Both states set liability floors that can be quickly exceeded in a serious accident. The minimum may not be sufficient for you and your family.
• Understand the tort tradeoff. Choosing Limited/Verbal Threshold coverage in either state can meaningfully limit your ability to recover for pain and suffering damages later, even though it lowers your premium now.
• If you split time between Pennsylvania and New Jersey, or recently moved between the two, make sure your policy reflects the correct state’s requirements and that you’ve made an affirmative, informed choice on tort/threshold options.

The attorneys at Leonard Sciolla are available to review your coverage with you even if you haven’t been involved in an accident. We represent individuals and families involved in personal injury matters, and we’re always available for a conversation. Also, we hope you’re never in an accident — but if you