Levels of Auto Insurance
Although the Basic New Jersey auto insurance plan that includes the
above three options is all that you need to be a legal New Jersey
driver, there is also a Standard plan that is still usually affordable,
but which covers you more fully in an accident. The Standard plan
includes:
- Bodily Injury Liability: $15,000 - $250,000 per person
- Property Damage Liability: $5,000 - $100,000 per accident
- Personal Injury Protection: up to $250,000 per person per accident
- Uninsured/Underinsured Motorist Coverage: $5,000 or more, up to the amount of Property Damage Liability you’ve selected
- Collision: Depends on your needs
- Comprehensive: Depends on your needs
In some cases, you can add on one or more “extras” to the Basic policy
as needed instead of automatically upgrading to the Standard policy. It
depends on your insurer.
New Jersey has a special insurance coverage regarding your right to
sue. If you purchase just the Basic policy, you’ll only be covered
under the Limited Right to Sue. This is also the “default” choice on
all insurance policies, so unless you change it, you only have limited
rights. Under this option, you can sue for medical expenses and lost
wages (and sometimes other monetary losses), but you cannot sue for
pain and suffering or other non-monetary losses unless one of the
following situations occurred:
- You lose a limb.
- You are disfigured or significantly scarred.
- You have a displaced fracture.
- You lose a fetus.
- You suffer a long-term permanent injury and your body will never fully heal or be able to function as it did before the accident.
- You die (and your family sues on your behalf).
For example, if you suffer from whiplash, you can sue for your medical
expenses to heal, but you cannot sue for pain and suffering, no matter
how much it hurts. However Unlimited Rights to Sue, you can sue for any
injury that occurred during the accident and for any reason. Your right
to sue does not guarantee that you’ll win, but it does give you the
option to sue.
