Types of Auto Insurance in New Jersey

There are two types of auto insurance policies sold in the state of New Jersey, Standard & Basic. Although our agency writes both policies, we try only to sell Standard Policies due to the limitation of coverages with Basic policies. The Standard Policy includes the following coverages:

Bodily Injury Liability Coverage pays for claims and lawsuits by people who are injured or die as a result of an auto accident you cause. It compensates others for pain, suffering and economic damages such as lost wages.

Property Damage Liability Coverage pays for claims and lawsuits by people whose property is damaged as result of an auto accident you cause.

Uninsured Motorist Coverage pays you for property damage or bodily injury if you are in an auto accident caused by an uninsured driver.

Underinsured Motorist Coverage pays you for property damage or bodily injury if you are in an auto accident caused by a driver who is insured, but who has less coverage than your underinsured motorist coverage.

Collision Coverage pays for damage to your vehicle as the result of a collision with another car or other object.

Comprehensive Coverage pays for damage to your vehicle that is not a result of a collision, such as theft of you car, vandalism, flooding, fire or a broken windshield. However, it will pay if you collide with an animal.

Personal Injury Protection (otherwise known as PIP). This is your medical coverage for injuries you (and others) suffer in an auto accident. It is sometimes called “no fault” coverage because it pays your own medical expenses no matter who caused the accident. PIP has two parts (1) coverage for the cost of treatment you receive from hospitals, doctors and other medical providers and any medical equipment that may be needed to treat your injuries and (2) reimbursement for certain other expenses you may have because you are hurt, such as lost wages and the need to hire someone to take care of your home or family.

Bodily Injury, Liability/Property Damage and Uninsured/Underinsured coverage and PIP are required coverages by the state of New Jersey.

Elected coverages that can be added to the policy are Comprehensive, Collision, Rental Reimbursement and Towing and Labor.

Check with your agent to make sure you have the most comprehensive coverage for your automobile.

In addition, most companies offer package discounts when both auto & home is written with the same company.

Courtesy of Theresa Butler - Personal Insurance Department