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Three Liability Protection Coverages to Include in your Auto Insurance in New Jersey

Driving entails getting yourself reliable and valid auto insurance in New Jersey. It is not a debate but an obligation that every motorist should adhere to. If one is caught driving without auto insurance the consequences are dire. This is because it is in the best interest of the state to protect its citizens diligently by ensuring their welfare is well taken care of. New Jersey passed an act called the Automobile Insurance Cost Reduction Act and with is commencement came stricter measures and much more severe penalties for driving while uninsured. You risk financial loss in addition to fines, license suspension, and your registration being revoked, your car being impounded by the local DMV, serving community service or even ending up in jail.

To make it affordable to all, there are two types of coverage’s; basic minimum policy and the standard policy. The car insurance law in NJ states that all motorists in the state must carry at least the basic minimum policy. It is a policy that was tailor made for individuals who have a few financial assets or none at all and also have no family obligations. It is especially suitable and meant for the younger motorists who may not be able to afford the comprehensive policies due to their income.

To understand this better, here are a few differences between the two:

Bodily injury liability: this will cover the at-fault driver in an accident against claims and lawsuits. If you do not have this protection then you will have to pay for all the costs that will arise from the accident out of your own pocket. In the basic policy, it not necessarily required but is available as an option at $10,000 per individual per accident.

Personal injury protection: this protection covers the costs that arise from injuries to you and other occupants in your vehicle at the time of the accident. This protection is mandatory as stipulated in the law and is present in both the basic and the standard policies. In a no fault state such as New Jersey, personal injury protection covers for the injuries of both the person at fault as well as the person not at fault. This is a major difference from the laws in most of the other states.

Property damage liability: in the unfortunate occurrence of an accident, property may be damaged and to protect the motorists from claims and lawsuits, property damage liability is required. It is mandatory in the state of New Jersey and the basic policy fixes the minimum amount for it at $5,000 for every accident.

Understanding the New Jersey car insurance laws is imperative and must be a priority for all who hope to drive in the state. Get more info on the subject by keying in your zip code in the slot provided above and avoid the fines and penalties that come as a result of violations of laws of auto insurance in New Jersey.