New Jersey Auto Insurance Coverage Options
New Jersey insurance regulations require drivers to maintain auto insurance coverage while operating the state's roadways. Though mandated, the state provides its citizens with policy options that help drivers to have some control in the cost of their insurance coverages.
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Basic
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When purchasing auto insurance, New Jersey drivers must select between a basic policy and a standard policy. The basic policy package is designed to provide state-mandated protection with a lower premium cost. This package includes property damage liability at $5,000 per accident, personal injury protection at $15,000 per person with an optional bodily injury liability selection of $10,000 for all vehicle occupants.
Standard
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The standard policy provides a more comprehensive selection of coverages, giving the policyholder greater protection from potential injuries and damages. The standard policy coverages include bodily injury and property damage liability limits of, at least, $15,000 per person, $30,000 per accident with $5,000 in property damage. The standard policy also includes personal injury protection of at least $15,000 per person with levels as high as $250,000. Uninsured and underinsured motorist coverages are also available under this package. The selected limits for these coverages cannot exceed the limits selected for bodily injury and property damage.
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Physical Damage Coverages
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Comprehensive and collision, or physical damage, coverages are also available to New Jersey driver under the standard policy option. New Jersey does not require insurance carriers to offer physical damage coverages to drivers who elect the basic policy option. Therefore, basic policyholders may be required to switch insurance carriers in order to purchase comprehensive and collision coverage.
Right to Sue
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Policyholders that select the standard policy package must determine whether they want to retain their unlimited right to sue another party for pain and suffering and non-economic losses. These aspects are not insured under personal injury protection coverage, which covers medical expenses and economic losses, such as lost wages. Drivers who elect the unlimited right to sue can lawfully litigate against the at-fault party for monetary damages. Drivers who elected the limited right to sue option can only sue for pain and suffering and noneconomic losses under certain circumstances, including death, dismemberment, significant disfiguration, loss of a child or fetus, and permanent injury.
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