If you are purchasing auto protection in New Jersey for the first time, you must understand New Jersey financial responsibility requirements. In New Jersey, all drivers are required to obtain auto protection before they are eligible for their driver license. When you are quoting New Jersey insurance you should have a basic understanding of how each coverage option with protect you and your family. New Jersey auto protection laws differ from the laws set in other states. Drivers have the option to invest in a standard auto insurance policy or a basic auto protection policy. Understand the difference between the two and make the best investment.
Basic Insurance
Basic auto insurance policies in New Jersey offer less protection for a lower premium. The coverage options provided in a New Jersey basic insurance policy will meet the minimum requirements for insurance set by the state. The Automobile Insurance Cost Reduction Act requires all New Jersey auto insurers to offer basic insurance plans to all drivers in the state. If you are driving without insurance and do not have a lot of money to invest in insurance, purchasing a basic plan could be the best alternative for you.
A basic New Jersey insurance policy provides $10,000 in bodily injury coverage for all persons per accident. This type of coverage will satisfy state requirements, however, it will limit the amount of protection you have if you are deemed at fault for injuries in an accident. The basic plan also provides $5000 in Property Damage coverage, which will pay for damages to a third-party vehicle. If you are injured or suffer damages because of another party, the basic plan will include a limited right to sue option.
Standard Auto Insurance
Standard auto insurance is the most popular type of auto protection purchased in the state of New Jersey. Standard insurance policies provide Bodily Injury, Property Damage, Personal Injury Protection, and Uninsured Motorist coverage options. Policyholders have the option to choose their liability limits. The state will require drivers to carry no less than $15,000 per person and $30,000 per accident in Bodily Injury coverage and $5,000 per accident in Property Damage. Unlike the basic plan, you will have the option to add uninsured motorist to your policy up to the limits you select for liability. Policyholders with a standard auto insurance plan are not limited to their right to sue, giving them more freedom to collect on a claim for damages or injuries.
If you can truly afford standard New Jersey insurance you should do so. Basic auto insurance is designed for individuals who would drive without insurance otherwise. Do your homework and quote insurance rates with several auto insurers. Once you find a competitive rate, bind your insurance policy and get your driver license.
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