Yes, New Jersey operates under a no-fault insurance system. This means that if you’re involved in a car accident, your own insurance company will cover your medical expenses and certain other losses, regardless of who was at fault. This system is designed to streamline the claims process and reduce the need for litigation. However, New Jersey also allows drivers to choose between a “limited right to sue” and an “unlimited right to sue” option, which can affect your ability to pursue compensation for pain and suffering. Understanding these options is crucial for New Jersey drivers to ensure they have the right coverage for their needs.