NJ Auto Insurance and the Default Lawsuit Waiver Question

New Jersey auto insurance policies do not include a lawsuit waiver (often called a waiver of subrogation) by default; it must be added as an optional endorsement or purchased through a specific policy feature. Drivers who want the waiver must request it from their insurer and may pay an additional premium, while those who do not request it retain the insurer's right to pursue subrogation claims after a loss.

What a lawsuit waiver means

A lawsuit waiver prevents the insurer from suing a third party who caused your loss after the insurer has paid your claim. It is most useful when you are at fault in an accident involving a friend, family member, or a vehicle you do not own, and you want to protect the other party from being held financially responsible.

How NJ insurers handle the waiver

Most NJ carriers treat the waiver as an optional endorsement, not a standard part of the policy. The endorsement is listed separately on the declarations page and is subject to underwriting rules, rating factors, and state regulations. Some insurers may bundle the waiver with certain "full‑coverage" packages, but even then it is disclosed as an add‑on rather than an inherent feature.

When the waiver is automatically applied

There are limited scenarios where the waiver may appear without a separate request:

• Commercial auto policies that include fleet‑wide subrogation waivers as part of a negotiated contract.
• Policies purchased through a dealer or financing agreement that bundle the waiver for convenience, though the driver still signs for the endorsement.

In these cases, the waiver is still an optional element of the contract; the driver can request its removal before the policy becomes effective.

Cost and impact on premiums

Adding a waiver usually raises the premium modestly—often a few dollars per $100,000 of coverage—because the insurer assumes more risk by giving up subrogation rights. The exact cost varies by carrier, driver history, and the level of coverage selected.

How to verify your policy

Review the declarations page for any line labeled "Waiver of Subrogation" or "Lawsuit Waiver." If it is absent, the policy does not contain the waiver. Contact your agent or insurer's customer service to confirm and, if desired, request the endorsement.

Comparison of typical options