New Jersey has a no-fault car insurance system, but you still may be able to file suit if you were injured in a car accident. No-fault insurance means that if you are injured in a car accident, you do not have to file a lawsuit against the other driver to obtain payment for the medical treatment for your injuries. Instead, most of the time, your auto insurance pays for your medical treatment and certain out-of-pocket expenses. In most instances, you can still file a lawsuit against the other driver for your pain and suffering and economic losses.