In an attempt to lower insurance costs, the New Jersey State Legislature adopted a law permitting automobile insurance carriers to offer their clients a lower premium if they elect to waive their right to sue for non-permanent, non-catastrophic, personal injuries as a result of an automobile accident. By choosing a verbal threshold, the client pays less annually, but can only file suit for "serious" injury, for example, loss of life or limb, displaced fractures, or injuries of a permanent nature, which have a "significant effect" upon your lifestyle. In other words, if you sustained a whiplash that improved in 6 weeks, you probably would not be entitled to sue the person who hit you. Such a policy prevents recovery for a non-permanent injury, despite the fact that it caused you great pain, discomfort, or suffering. In the State of New Jersey, unless otherwise instructed, insurance companies will automatically assign verbal thresholds to their policies. Therefore, even though your premium may be slightly higher, we recommend you choose "No Threshold" in your insurance coverage in order to preserve your right to collect for pain and suffering.
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