Whether you’re purchasing car insurance for the first time or have just moved to New Jersey and aren’t sure of the legalities involved, there are many considerations you must make to ensure that you have sufficient insurance and that the insurance you choose is right for you. Unfortunately, many drivers are surprised to discover after an accident that they lack protection they thought they had. In this article, I answer several of the most common questions consumers ask about buying auto insurance. If you have recently filed a claim and are struggling with your insurer, a Northern New Jersey personal injury attorney at Buttafuoco & Associates may be able to help you negotiate.
What is Liability Coverage?
Liability coverage protects you if you are at fault in an accident. Auto liability coverage is essential: if you don’t have it and you cause an accident, the injured party could attempt to take your house, car, or other property. If, however, you are covered by liability insurance, your insurance company will pay damages up to your policy’s limits.
There are two types of liability coverage in New Jersey: property damage and bodily injury. Property damage protects you if you are found responsible for an accident and another person’s property is damaged. Bodily injury liability coverage protects you if you are found responsible for an accident that results in bodily harm to other parties. Liability coverage also pays for your legal defense if you require it.
What is Uninsured Motorist Coverage?
Uninsured Motorist (UIM) coverage protects you when the other party in an accident is at fault and they are uninsured. Although New Jersey law requires drivers to carry insurance, the unfortunate reality is that many drivers do not. If one of these uninsured drivers causes an accident that you are involved in, the UIM coverage will protect you. Your insurer will pay up to the limits of your auto insurance policy.
What Does $50,000/$100,000 Mean?
Two dollar amounts expressed like this ($50,000/100,000) indicate the limits of your auto insurance policy. The first number is how much coverage you have for each person in the vehicle. The second number is how much coverage you have in total for the accident. For example, using these example limits, if you are in an accident and there are three of you in the vehicle, each person would be covered up to $ 50,000, but all three would have to be covered with $100,000. There can be different amounts for different types of coverage, such as liability and uninsured motorist.
How Much Coverage Should I Buy?
This is a tricky question. While it’s tempting to save money by skimping on insurance, it’s best to buy as much as you can afford. This prevents you from finding yourself unexpectedly in a situation where you cannot afford to cover the cost of the accident. Adding coverage is usually a minimal expense–for example, you won’t pay twice as much for twice the coverage. If you buy the minimum required amount of insurance, you will likely run into problems if you do get in a serious accident.
How Much Insurance Does New Jersey Require?
There are also some legal requirements in the state of New Jersey that require a specific minimum car insurance limit. As of January 1, 2023, New Jersey drivers must have at least a $25,000/$50,000 for bodily injury liability. This covers anyone in your vehicle who is injured in an accident.
You must also carry $25,000 in property damage liability insurance, which covers you in the case that you damage another person’s property in an accident. New Jersey drivers must also carry $15,000 in PIP (Personal Injury Protection) insurance, which pays if you or other people in your vehicle are injured in an accident.
Because New Jersey is what is known as a no-fault state, you must first use your own PIP insurance, even if you are not at fault for an accident; in other words, your own insurer will cover your medical expenses. Finally, you need to have at least $5000 in UM (underinsured motorist) insurance.
What Are Optional Auto Insurance Coverages and Do I Need Them?
Optional types of insurance can protect you in scenarios that your required insurance does not cover. Comprehensive coverage will cover repairs when your vehicle is damaged due to something that isn’t a collision, such as theft or vandalism. Collision coverage will repair damage to your vehicle when it collides with another vehicle or object. If you can afford them, these optional insurance options can be helpful to you in cases where major damage occurs so that you aren’t paying out-of-pocket.
How Can I Save Money on Car Insurance?
Car insurance can definitely be expensive, especially for younger drivers or those who have never been insured. The best things you can do to save money long-term are to drive safely so your driving record remains good. But even first-time buyers can get deals and discounts. One way to do this is to make sure to shop around rather than buying from the first company you encounter. Premiums can vary by hundreds of dollars, depending on the company, so asking for quotes from multiple companies is a good idea.
You can also receive discounts from some companies for being a good student, paying the cost of your coverage in full, utilizing an electronic billing system, or driving a car with safety features like anti-lock brakes. You could also try usage-based insurance, where a company will gather data about your driving habits that the insurer will then use to calculate your premium. The safer you are, the lower your premium.
Is it Possible to be Denied Car Insurance?
While New Jersey law prevents companies from denying car insurance based on gender, race, or ethnicity, there are other reasons you can be denied. All insurance companies have certain criteria new customers must meet. Depending on your driving record or vehicle type, you could face denial. If you struggle to get coverage, it can be a good idea to go to an agent who can provide you with more hands-on assistance and make recommendations.
When Do I Need a Personal Injury Attorney?
While having insurance can make your life significantly easier in the unfortunate case that you get in an accident, insurance agents are not always your friend. You may struggle to get a fair shake from an insurance company, even when you try to negotiate. In these cases, it can be a good idea to talk with a Northern New Jersey personal injury attorney at Buttafuoco & Associates to see if they can assist. A good attorney can help you present evidence, negotiate, and deal with other challenging situations.
If you need a free consultation, call 1-800-NOW-HURT.
