Auto insurance is mandatory in the state of New Jersey. However, the type and cost of coverage fluctuates considerably. It’s important to understand that auto insurance companies do not necessarily want you to know what it means to be properly and adequately covered. They want to entice you by offering lower prices—but, remember the old adage: You get what you pay for. Purchasing the right type and the right amount of insurance coverage for you and your family requires you to be an informed consumer. It is true that the absolute minimum coverage required by law will cost you less. But, if you are involved in an accident, you could find that you are not adequately covered and this could lead to you becoming personally liable for damages and medical bills. To find out if you are properly covered, contact an auto accident attorney in New Jersey.
Liability insurance protects your property in the event that a claim is made against you. In New Jersey, there is a minimum amount of liability insurance required by motorists. If a claim that exceeds your coverage amount is brought against you, the claimant can go after your personal assets. For this reason, we urge people to pay a little more and get better coverage.
Uninsured Motorist/Underinsured Motorist Coverage protects motorists in the event of an accident with a person who does not carry adequate insurance. A minimum amount of UM/UIM coverage is required by law. Most insurance companies will simply add this to a policy regardless of whether or not the amount is sufficient for your needs. It is strongly recommended that motorists purchase more than the minimum coverage.
Personal Injury Coverage (PIP) covers medical expenses—which can get very high, very fast. When asked who pays the medical bills in the event of an accident, most people believe it is the other guy’s insurance. This is not correct—regardless of whose fault the accident is, your insurance covers your medical bills (this is part of New Jersey’s no-fault system). Since this is the case, it is important that motorists do not simply choose the lowest possible coverage.
One of the most important insurance options to be aware of is called the Verbal or Limitation on Lawsuit Threshold option. Choosing this type of coverage limits your ability to bring suit for injuries sustained an auto accident. In order to maintain your full rights to sue, you need to choose the zero threshold option. The verbal threshold is less expensive. For this reason, many people buy it without considering other options.
These are just a few of the facts motorists should know about their automobile insurance policy. For more information regarding your individual situation and insurance needs, call our office.