The law of the Garden State requires motorists to maintain auto insurance in order to register and keep registration valid on all automobiles. The most common type of policy purchased to satisfy the state’s laws are known as a “Standard” policy, which includes liability coverage, personal injury protection and Uninsured motorists. Although, the state may also allow a motorist to purchase what is known as “Basic” policy, but these policies offer much less protection than standard coverage and should only be considered as a last resort in order to avoid driving uninsured.
Consumers must take the time when deciding between a standard and basic policy and understand exactly what will be covered in the event of a traffic accident. The state suggests that individuals who should consider basic car insurance in New Jersey are those with few family responsibilities and few real assets, such as a teenager or younger motorists who may not be able to afford more extensive protection. A standard policy should definitely be considered by a person who has established a family and has acquired assets to avoid financial debilitation resulting from a collision where the policyholder is at fault and may be held liable for compensating the other party; in which case, a judgment may be issued to garnish wages or liquidate assets.
New Jersey residents should know the difference between the two types of coverage prior to making a decision on which to purchase. A basic policy only offers the bare minimums which are $5,000 for property damage liability and $15,000 in personal injury protection per person, per accident and up to $250,000 for certain injuries. Policies do not come with bodily injury liability, but may be purchased as an option at a maximum limit of $10,000. Uninsured motorist is not available to policyholders and the availability of comprehensive and collision is dependent on the insurer.
Standard policies are quite a bit more extensive and offer much more options to an insured. Bodily injury liability can be purchased at limits in the range of anywhere from $15,000 per person and $30,000 per accident up to $250,000 per person and $500,000 per accident. Also, property damage can be purchased at a limit as high as $100,000 compared to the maximum of $5,000 of basic policies, and personal injury protection can be obtained at limits ranging from $15,000 to $250,000. In addition, Uninsured/Underinsured motorist coverage is also offered which cannot be obtained through a basic policy. It may be wise for consumers to refer to the New Jersey Auto Insurance Shopping Guide before ultimately deciding on the policy they wish to purchase.
Source: http://www.onlineautoinsurance.com/new-jersey/
