Obtaining Auto Insurance in New Jersey

2007-03-08 10:33:40

( Insurance )



Obtaining auto insurance in New Jersey differs slightly from purchasing automobile insurance in other states. Although the laws are fairly similar, they differ in the minimum coverage required by each state.

In the state of New Jersey, insurance companies are required to provide the consumer three different coverage options to choose from. Each option should be clearly explained to the consumer including its benefits, and how each choice would affect the consumer in the event of a vehicle accident.

You are allowed to cancel your current policy at any time, and request for a refund for the unused premium. The consumer is also permitted to switch coverage and limits even before the renewal period of the automobile insurance policy

There are different types of coverage for automobile insurance in New Jersey:

Personal Injury Projection (PIP) is the amount of coverage you can claim if you or any of your passengers are hurt in a car accident. It can include the cost of medical treatment for injuries, and the inconveniences experienced as a result of the accident, which can include lost wages, and the services of a caregiver.

Liability coverage comes in two types: bodily injury and property damage. Bodily injury pays for any pain and suffering, lost wages and economic damages of another party.

Property damage covers for any lawsuits brought about by parties whose property you have damaged because of the accident. It can also cover for any damages to your vehicle brought about by an uninsured or underinsured motorist, or a collision with another vehicle. A claim for property damage can also be made should your vehicle be stolen or be destroyed due to fire, flood or vandalism.

There are two types of policies for auto insurance in New Jersey:

A standard policy provides you different coverage options to choose from, and gives you the option to purchase additional protection.

A basic automobile insurance policy is cheaper than a standard policy, but has limited benefits. It usually does not have enough coverage to meet the minimum car insurance requirements in New Jersey.

When purchasing auto insurance in New Jersey, it is strongly advised that one does not only consider the cost of annual premiums, but also the coverage limits that are provided in the policy. A limit refers to the maximum amount that the insurer is willing to reimburse you when an accident occurs. Finally, there is also a deductible that is subtracted from the amount of your claim before it can be paid out to you. Deductibles vary with different insurance companies.

There are many additional benefits that can be added to your policy, but this will most likely increase the cost of your premium. There are also some benefits that can be removed because you may already have coverage elsewhere.


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