New Jersey follows a no fault car insurance system. This means that the personal injury protection (PIP) coverage of your car insurance policy pays for the medical treatment and other out-of-pocket expenses (up to the coverage limits) that are a result of the accident for anyone covered under your car insurance policy. Furthermore, this coverage is provided regardless of who is at fault for the accident. While a PIP claim will cover financial losses, it will not provide any compensation for non-monetary damages, including emotional pain and suffering or loss of one’s life enjoyment. The no-fault policy also limits your right to sue for pain and suffering unless you sustained serious injury.