New Jersey Auto Insurance
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New Jersey Auto Insurance: Your Questions Answered
Your bank account shouldn't groan each time you pay for your New Jersey auto insurance. If auto insurance is designed to safeguard your auto investment, then the protection should start with good, affordable coverage!
Just by shopping for cheaper New Jersey auto insurance, you're protecting your investment. But before you buy or renew a policy, make sure you know what insurer policies are available to you.
Your Insurance Consumer Rights
As a New Jersey resident, you have insurance consumer rights, protected by law and upheld by the New Jersey Department of Banking and Insurance (DOBI).
First—whenever you ask for auto insurance quotes, insurance agents must present price quotes within five days from the date they received your request. The deadline keeps agents from holding up your purchase.
Second—if are denied coverage, the auto insurance company must put in writing the reason for your denial.
Third—insurance agents must provide you with three coverage options, called Insurance Scenarios. This holds true if you already own insurance and just want more information, or if you are shopping for a new policy, according to a DOBI pamphlet.
Fourth—you can change policies and coverage limits at any time during the life of a policy. Always request your premium refunds when you reduce the cost of your auto insurance.
If you think your New Jersey auto insurance consumer rights have been violated, contact DOBI immediately.
The Policy You Want
There are two types of New Jersey auto insurance policies—Standard Auto Insurance and Basic Auto Insurance.
The most purchased auto insurance in the state is the standard auto insurance policy. Here's what you'll get with this type of coverage:
- Bodily Injury Liability — can be as low as $15,000 per person, $30,000 per accident
- Property Damage Liability — can be as low as $5,000 per accident
- Personal Injury Protection (PIP) — can be as low as $15,000 per person or accident
- Uninsured Motorist Coverage — available up to the liability amounts
- Underinsured Motorist Coverage — available up to the liability amounts
In New Jersey, all standard auto insurance policies are required to carry uninsured motorist coverage and underinsured motorist coverage.
You will also have income continuation, essential services coverage—which pays for quality of life tasks you would normally do yourself—and death and funeral benefits, if you are involved in a serious accident or collision.
You may choose to add collision and comprehension coverage to your policy. DOBI states that the standard collision/comprehension deductible is $750. Your auto insurance agent can advise you on the most appropriate deductible for your finances.
Basic auto insurance policies are designed to lower the cost of New Jersey auto insurance, offering insurance to every New Jersey driver.
The policies meet only the minimum state requirements for auto insurance coverage:
- Property Damage Liability at $5,000 per accident
- PIP at $15,000 per person, per accident
You could add $10,000 coverage for bodily injury liability. Some auto insurers have collision and comprehensive coverage options for the basic policy, so ask your agent.
This auto insurance policy also restricts your ability to sue should you be involved in an accident.
Tips to Lower Premiums
Once you've decided which policy you want, you should talk with your New Jersey agent about customizing your auto insurance.
Set higher deductibles.
File fewer claims by paying out-of-pocket for minor repairs.
Restrict drivers from certain vehicles under the Named Driver Exclusion option. You specify which drivers will be driving a vehicle, and then you only carry collision and comprehensive coverage on that vehicle for those drivers. It's an excellent way to lower your premiums!
However, if an unnamed person drives the vehicle and is involved in an accident, your auto insurance company may deny your collision and comprehensive claim.
Finally—use your health insurance as your PIP coverage provider. PIP is required by New Jersey law. Yet if your health insurance covers injuries from vehicle accidents, think about using your health coverage as your PIP. Why pay for duplicate coverage?
Be warned: if you use your health insurer for your PIP auto insurance coverage, and you lose your health insurance, the auto insurance carrier will charge you a $750 deductible for any medical claims.
New Jersey auto insurance is required. Expensive policies are not! By being an informed auto insurance shopper, you'll find cheaper auto insurance. Protect your checkbook!
InsureMe's online insurance shopping service can help you find the best auto insurance policy for your budget! Fill out our "Get a Quote Box" to start saving!
