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Coverage of Basic Car Insurance Policy in New Jersey

When it comes to New Jersey car insurance the first and most important thing to know is that it’s mandatory by law, caught driving without it and you will be fined. The penalties for driving uninsured vehicle are getting severer every year. In order to get the New Jersey cheap car insurance, you need to know what your options are. Follow an overview on how to get the cheap auto insurance in New Jersey.

The State of New Jersey offers three insurance options: basic, standard and self-insurance. The basic policy is the cheapest of all but at the same time it offers much less protection that the other mentioned types of insurance policies. According to the “Automobile Insurance Cost Reduction Act,” every registered motor vehicle in New Jersey should be covered at least by a Basic policy. Basic policy can be obtained from any insurance producer licensed in New Jersey. Here is an overview of the basic insurance policy explained with the amounts of coverage you can purchase on your New Jersey car insurance.

Body injury protection

This type of protection covers you against lawsuits and claims brought by individuals that were part of an accident in which you are found at fault. Without body injury protection you will be held responsible for paying for suffering, pain, economic damages like lost wages if it’s proved that you are the direct cause for the accident. The absence of body injury protection means that your insurance won`t cover the lawyer costs to represent you if sued. Due to that, almost all of your assets will be at risk which means that some or everything you have on your account can be seized as a result of a judgment against you. This type of protection is not mandatory, but is at disposal with the basic coverage policy as a choice with $10 000 per person per accident.

Property Damage Liability

It covers you in case of a lawsuit and claim from people whose property is damaged from the accident that you caused. This is included with the basic policy and it`s set at $50 000 per accident.

Personal Injury Protection – PIP

PIP covers your injuries as well as the injuries of others present in your automobile in the time of the accident, regardless what or who caused the accident. PIP is a state requirement and is included in the basic policy as it is in the standard policy. Coverage is $15 000 per accident.

Collision

It covers damages to your vehicle that happened as a direct result of an accident with another vehicle or some other object. It`s available only as an option and only with some insurers.

Comprehensive

It covers damages that are not caused by some sort of accident with another vehicle, but damages cause from vandalism, broken windshield, fire, flooding or theft of your car. As with collision cover available as an option and from only selected insurers.

If you are interested in getting the cheap auto insurance in New Jersey, just enter your zip above and find out how much money you can save.