In all standard New Jersey auto insurance policies the insured is provided with PIP coverage. PIP provides medical benefits to the insured, relatives of his/her household and occupants of the vehicle when involved in a car accident that involves an “automobile”. Not all vehicles are considered an “automobile.” For example, motorcycles, buses, cabs, and limousines do not meet the definition of “automobile.” So under most circumstances when involved in a motor vehicle accident you will be covered by PIP.
But what happens when there is an accident and you are the occupant of some other type of vehicle such as a motorcycle, bus, cab, or limousine? In those instances, PIP will not be available because those vehicles do not meet the definition of “automobile”. So if PIP benefits are not provided in those types of situations, who will cover your medical expenses?
Under New Jersey law your auto insurance policy is required to have another type of coverage known as Extended Medical Expense benefits. This part of your policy covers you if you are injured operating or as a passenger in a vehicle other than those defined as an “automobile.” NJ auto insurance carriers are required to provide a minimum of $1,000 of extended medical expense benefits, and the insured driver can choose to increase that coverage up to $10,000. It is always better to choose $10,000 in coverage because you can never predict how much medical care you will need in case of an accident.