New Jersey Auto Insurers Expect A Tide Of Litigation

After having been signed only a handful of days, a New Jersey statute allowing consumers to file lawsuits accusing auto insurance companies of bad faith had already resulted in one major insurer facing two of those suits.

The newly signed bill is expected to greatly alter the shape of the personal injury ecosystem in NJ.

According to lawyers representing vehicle accident victims, the new law in New Jersey makes it possible to sue over delayed payments from the auto insurance company, and that this will make it possible to level the injury claims playing field.

However, insurers and their defense lawyers are expecting that there will be a sudden onslaught of lawsuits that will only result in rising premiums to cover the legal costs.

Governor Phil Murphy signed a bill on January 18 making it possible for policyholders with uninsured or underinsured vehicle claims that were delayed or denied unreasonably to file lawsuits for up to three times the limit of the policy, in addition to pre- and post-judgment interest, as well as litigation expenses and attorney fees.