Auto insurance in new jersey
Having auto insurance for drivers is mandatory by law in New Jersey. You have a number of plans to choose from while shopping for an auto insurance policy and therefore you should have a clear idea about how much or how little insurance do you actually need and afford. You also have an option to change the type of coverage and the policy limits when you wish to irrespective of how far or near your actual renewal date is.
Types of coverage:
Bodily injury liability This covers for the damages and losses caused to other people and their vehicles due to you. This includes medical and hospital expenses, compensations for their bodily damages and income lost due to their inability to work till recovery.
Property damage liability- insurance cover for the damage and loss to the vehicle and other property of others.
Personal injury protection (PIP) PIP which provides cover for you and those traveling with you, for services that can be rendered necessary, within one year after the occurrence of the accident.
Uninsured motorist bodily injury coverage (UMBI) UMBI coverage ensures that your insurance provider compensates for those expenses that would have normally be covered by the other persons provider if you get injured due to an uninsured motorist.
Types of auto insurance available in New Jersey:
Broadly there are two types of auto insurance policies available in New Jersey, namely the Basic auto insurance policy and the Standard auto insurance policy.
Basic policy This provides enough coverage that is required by law in New Jersey and is cheaper than a standard policy. It is more suited for those who cant afford much on auto insurance and who have lesser dependents.
The following are the benefits provided by the basic policy.
- Bodily injury liability though not included directly in the coverage, it can be availed as an option which provides a cover of $10,000 for all persons per accident in New Jersey.
- Property damage liability under the basic auto insurance policy, property damage liability of $5,000 per accident in New Jersey is included.
- Personal injury protection (PIP): PIP coverage of $15,000 per person, per accident, and up to an amount of $250,000 in the case of serious and permanent injury is provided.
Standard policy:
- Bodily injury coverage of $15,000 per person per accident and $30,000 for all persons per accident is provided in the policy, though policies having higher limits are also available.
- Property damage liability: $5,000 worth coverage per accident is provided with options of higher limits.
- Personal injury protection (PIP): coverage worth $250,000 per person per accident is provided with the availability of having lower limits. Up to $250,000 in case of serious or permanent injury is included in the policy, irrespective of the chosen limit.
- Uninsured / underinsured motorist coverage: this coverage can be availed for the amount up to which the liability coverage provides for.
- Collision: collision coverage is optionally available.
- Comprehensive coverage: This is also available optionally.
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