Types of Coverage

The previously-listed Standard and Basic plans might sound a bit confusing to you. Although insurance coverage policies vary a bit from state to state, in New Jersey, here’s what you can expect with each part of your auto insurance policy.

First, with auto insurance, you want to protect your own safety and the safety of those also involved in any accident you cause. Your bases are covered with your PIP (personal injury protection) coverage. PIP coverage is sometimes called “no fault” coverage in New Jersey because it pays for your medical expenses no matter who caused the accident. PIP coverage may also help pay for the medical expenses of others involved as well. However, if you’ve caused the accident, these injuries will also be covered under bodily injury liability insurance if you carry it.

With New Jersey auto insurance, you will also have coverage to protect property that you may damage in an accident. This includes all vehicles involved as well as fences, signs, land, and so forth that might be damaged. Property damage liability takes care of those claims. You may also choose to purchase collision insurance, which covers your vehicle repair even if you were the one to cause the accident.

New Jersey has minimums that must be met when it comes to coverage amounts. However, sometimes accidents exceed those amounts. When this happens, uninsured/underinsured motorist coverage can be a lifesaver. This covers both injuries and property damage. For example, if another driver causes an accident and your medical total $20,000, what happens if he or she only has a basic policy with a $15,000 limit? You have to pay the $5,000 yourself and sue the other person for that loss – even if you win, you are, in the meantime, out $5,000. If you carry uninsured/underinsured motorist insurance, your insurance company will foot that bill and seek retributions on their own, leaving you with peace of mind, hands washed of the situation.

Lastly, you may want to take advantage of New Jersey’s comprehensive coverage insurance plans. This part of your policy will pay for any major problems with your vehicle that result from events other than accidents. Some of the things covered include vandalism, flood, fire, theft, and collision with an animal.