Bring Back the $250K: Why New Jersey Must Restore Full PIP Coverage

All Practice Areas

At The Epstein Law Firm, P.A., we’ve seen it again and again: a client walks into our office after a car crash, relieved to be alive, thinking their medical bills are covered—only to find out their Personal Injury Protection (PIP) insurance barely scratches the surface.

This is the hidden crisis in New Jersey car accident law. And it all starts with a quiet rollback in PIP coverage.

What Happened to the $250K?

Historically, New Jersey drivers were covered by $250,000 in PIP—insurance that pays for your medical treatment after a motor vehicle accident. It was simple. You got hurt, you went to the doctor, PIP paid the bills.

But in recent years, insurers started offering “limited” policies. For lower premiums, drivers could opt into lower PIP policies with some capped at $15,000—or even zero. And many drivers did just that without understanding what they were signing away.

What This Means for Real People

We’re seeing the fallout every day. Clients come to us with $50,000 or $100,000 in medical bills. But if their PIP cap is $15,000, guess who’s stuck with the difference? The client.

Yes, we can include those bills in a lawsuit as part of the damages. But here’s the catch: the higher the bills, the more the carrier has to pay—but often, the less the client takes home. Why? Because those unpaid bills are often subject to letters of protection (LOPs)—agreements that guarantee the provider will get paid out of the eventual settlement or verdict. So the doctor gets paid. The insurance carrier pays more. But the injured person? They’re often left with less than they would have received under the old $250K system.

The System Is Now a Game of Musical Chairs—and the Patient Loses

Even worse? Off the record, many in the legal and medical communities will tell you there’s a shady underbelly to this new system. When there’s no PIP, certain providers see an opportunity. Bills skyrocket. Treatment decisions get distorted. And patients get caught in the middle—vulnerable, confused, and facing aggressive collection efforts.

This isn’t theory. It’s reality. And it’s not sustainable.

A Simple Solution: Restore Full PIP Coverage

If New Jersey restored the default $250,000 PIP coverage—with clear disclosure and fewer gimmicky opt-outs—we’d see:

• Lower outstanding medical bills in most injury cases

• Less confusion for injured drivers

• Cleaner negotiations with insurance carriers

• Fewer LOPs and surprise lien paybacks

• More transparency—and fewer incentives for shady billing practices

In short: restoring the full PIP would make the system simpler, fairer, and more honest.

Time for Trenton to Act

We urge the New Jersey Legislature to make this a priority. It’s a quiet crisis, but it’s costing everyday New Jerseyans their health, their credit, and their peace of mind.

The Epstein Law Firm, P.A., stands with every driver and passenger in this state who believes they should be able to get medical care after an accident without going bankrupt in the process. We’re ready to talk to lawmakers, regulators, and insurers alike—because this isn’t partisan. It’s common sense.

Bring back the $250K.