In most New Jersey car cases, the "verbal threshold" is the insurance company's strongest weapon against a pain-and-suffering claim. Uber and Lyft passengers are in a better position: New Jersey's rideshare law takes that defense away in many passenger cases. Here is when it applies, when it doesn't, and how to meet it if you have to.

What the verbal threshold is

New Jersey drivers choose between two lawsuit options on their auto policy. Most pick the cheaper "limitation on lawsuit" option. If you're bound by it, you can recover pain and suffering only if your injury falls into one of six categories: death, dismemberment, significant disfigurement or scarring, a displaced fracture, loss of a fetus, or a permanent injury (N.J.S.A. 39:6A-8(a)). A permanent injury means a body part or organ hasn't healed to function normally and won't with further treatment.

The threshold usually covers you even if you didn't buy the policy yourself, such as a relative living in your household. The verbal threshold explained in full.

The rideshare exception

The Transportation Network Company Safety and Regulatory Act changes the rule for prearranged rides. In a lawsuit arising from a rideshare trip, the company and its driver can't assert the limitation on lawsuit option, and the option can't be asserted against anyone who isn't receiving PIP benefits (N.J.S.A. 39:5H-10(j)).

In practice, that means:

  • Suing your Uber or Lyft driver: the permanent-injury test generally doesn't apply, even if your own policy has the limitation option. You need to prove the driver was careless and that you were hurt, not that your injury is permanent.
  • Suing another driver who hit your rideshare: that driver isn't protected by the rideshare law. If you're receiving PIP under a policy with the limitation option, they may still raise the threshold. If you're not receiving PIP at all, it can't be raised against you.
  • Both drivers share fault: the threshold may apply to one claim and not the other. New Jersey divides fault among everyone who caused the crash (N.J.S.A. 2A:15-5.2).

The exception covers rides arranged through the app. A ride with the same driver off the app, for cash, isn't a prearranged ride under the Act (N.J.S.A. 39:5H-2).

Others who aren't bound by the threshold

  • People whose own policy has the "no limitation on lawsuit" option.
  • Some pedestrians, cyclists and people with no household auto policy, depending on how they get PIP. Pedestrians and cyclists hit by rideshare cars.
  • Out-of-state residents in some situations. New Jersey's "deemer" statute can apply the threshold to visitors whose insurer does business in New Jersey (N.J.S.A. 17:28-1.4), so this depends on the visitor's insurer.

Lost wages and medical bills that PIP doesn't cover aren't limited by the threshold at all. It only restricts pain and suffering and other non-economic damages.

Meeting the threshold when it does apply

If the other driver can raise the threshold, the claim needs medical proof, not just a description of pain:

  1. Objective evidence. The permanent injury must be shown with objective clinical evidence, such as MRI findings, nerve studies or measured loss of motion, not only your reported symptoms (N.J.S.A. 39:6A-8(a)).
  2. A physician certification. Within 60 days after the defendant answers the lawsuit, you must serve a certification from a licensed treating physician or board-certified specialist stating, under penalty of perjury, that the injury meets a threshold category (N.J.S.A. 39:6A-8(a)).
  3. No "serious life impact" test. The New Jersey Supreme Court held that a plaintiff who proves a qualifying permanent injury doesn't also have to prove it seriously affected their life (DiProspero v. Penn, 183 N.J. 477 (2005)).
  4. Consistent treatment. Gaps in care are what insurers use to argue an injury healed. Follow through on treatment and keep records.

Your medical bills come first

Whatever happens with the threshold, medical bills are usually paid first through PIP under your own or a household auto policy (N.J.S.A. 39:6A-4). Passengers without any household policy should get advice early, because the order of coverage changes. Rideshare passenger rights, including medical coverage.

Evidence to keep

  1. Your trip receipt and screenshots of the ride in the app. They prove it was a prearranged ride.
  2. The police report, photos and witness contacts.
  3. All medical records and imaging, especially anything showing objective findings.
  4. Your own auto policy declarations page, which shows which lawsuit option you chose.

Deadline

Most rideshare injury lawsuits in New Jersey must be filed within two years (N.J.S.A. 2A:14-2). Filing a rideshare injury lawsuit.

Whether the threshold applies is often the biggest question in a passenger's case. Get a free review of your Uber or Lyft injury, or see our car accidents page.