Retain counsel in New York and take it from there. Make sure the attorney knows that New Jersey has a shorter statute of limitations for automobile cases than New York does.
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The final piece to the equation regarding where you may properly maintain suit will depend upon where the other vehicle (owner and/or operator) is from. Sorry to be blunt, but you are making a mistake by speaking with the insurance company. Contact qualified personal injury counsel. The bills portion of your incident, called "no-fault", can be maintained in either State. There are advantages and disadvantages either way. Good luck.
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In would consider an consulting with an attorney licensed in both NY and NJ as there may be venue, statute of limitations and no-fault considerations.
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Unless the other driver lives in New York any lawsuit will be in New Jersey. If you can find someone admitted in both states as I am that would be good.
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Your biggest problem is one of which jurisdiction to proceed in. If you don't have a car of your own, you will need to make a claim under the PIP coverage of your friend's insurance company. That is a NJ contract that will be governed by NJ PIP insurance law. For that you will need a NJ PIP lawyer. It appears, from your description that the accident was the other driver's fault. Unless the other driver is subject to NY jurisdiction, that will also be a NJ claim and one that will require a NJ Personal INjury lawyer. They may both be the same lawyer, but you need to contact someone soon and get the ball rolling. NJ has verbal threshold issues that you will also need to have resolved. Use find a lawyer feature to locate the lawyer(s) you need. In this case, I would also suggest that you look for a lawyer who has NJAJ and/or AAJ affiliation, as they usually specialize in this kind of case.
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Assuming that the other driver was insured in NJ, then the case should be brought in NJ. If you are insured in NY you should see if your carrier would pay your medical bills under no-fault. You are best advised to consult with an experienced personal injury attorney in NJ before you do anything.
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Hello.............NJ. Avvo has a terrific "find a lawyer" tool to locate a top-rated Avvo attorney with a low contingency fee ( less than 30% so you don't get ripped off ). Good luck.
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If the other driver was a New York resident, you my start a lawsuit in state court in New York . You may also have the option of suing in Federal Court in NJ if the defendant was a NJ resident.
Regarding No Fault = yes, you should consult with NJ counsel. The law is different regarding benefits in NJ versus NY.
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