When looking at New Jersey auto insurance quotes you will be presented with many choices, hopefully this article will help you make the right ones.
In New Jersey it is mandatory that you have auto insurance. There are two common types of auto insurance policies in New Jersey, the cheaper Basic policy that provides sufficient coverage to meet the minimum insurance requirements of New Jersey Law and the more expensive Standard policy which is the policy chosen by most New Jersey drivers. Both policies offer options to further increase your protection.
In New Jersey auto insurance policies are divided into different coverage depending upon the type of claim that we will paid to you and / or others. The coverage fall into three areas.
1. Coverage to pay other people a result of an accident caused by you
Liability – Bodily Injury Liability
This covers you for claims and law suits by people who are injured or die as a result of an accident that was caused by you. The coverage is usually expressed as two amounts, one for all persons injured in an accident and another specifying the limit payable to an individual. For example your policy may state that you are covered for a total of $ 100,000 but specifying a limit of $ 20,000 for each person.
With a basic policy coverage is not included but is available as an option. Coverage is included in a standard policy starting from $ 15,000 per person and $ 30,000 per accident.
Liability – Property Damage Liability.
One again this covers you for claims and suitssuits by people whose property is damaged in an accident caused by you.
This coverage is included in both Basic and Standard policies, the amounts being $ 5,000 on the basic policy and from $ 5,000 to $ 100,000 on the Standard policy.
2. Coverage to pay you where the accident was caused by other people
Uninsured Motorist Coverage
This coverage will pay you for bodily injury and property damage that you suffer as a result of an accident caused by an uninsured driver.
Underinsured Motorist Coverage
This coverage pays you for bodily injury and property damage that you suffer as a result of an accident caused by a driver who has insurance but whose coverage is less than your uninsured motorist coverage.
The above coverage are not available on the Basic policy but are optional on the Standard.
3. Coverage to pay you and / or other people irrespective of who caused the accident
Personal Injury Protection (PIP)
This coverage (sometimes known as "no-fault" coverage) is for injuries that you and others may sustain in an auto accident irresponsive of who caused the accident. It covers the cost of hospital and medical expenses incurred in treating injuries and other incidental expenses such as lost wages.
The Basic policy offers a maximum coverage of $ 15,000 per accident and up to $ 250,000 for significant or permanent injury. The Standard policy coverage can go as high as $ 250,000 per accident and $ 250,000 for permanent injury.
Collision Coverage
Coverage to pay for damages caused to your vehicle when involved in a collision with another vehicle or object.
This is available as an option on the Standard policy. It is not included in the basic policy but may be offered as an option by some insurers.
Comprehensive Coverage
This pays for damage to your vehicle that is not the result of a collision, such as fire, theft, vandalism and flooding. An option on Standard policies and also on the Basic policy with some insurers.
