Ensuring You are Protected While Driving in New Jersey

New Jersey requires auto insurance. Fortunately, options are available to consumers that make it much easier to obtain the plan you need in order to comply. The Automobile Insurance Cost Reduction Act requires insurers to make a "basic policy" available to all drivers. Penalties for driving without being covered are becoming more severe, and include fines, driver's license or vehicle registration suspension, and even jail time. In the not-so-distant future, your car could even be impounded. Worst of all, if someone else hits your car, you will not be able to sue them unless you have protection.

The Basic Plan costs less than a Standard alternative, but it also provides less protection. If you don't have many assets and haven't started your family yet, the Basic option is a good choice for you.

A Basic Policy often includes the following: $5,000 property damage liability per accident; $15,000 personal injury protection per person, per accident; $250,000 for permanent or significant injury. An optional $10,000 bodily injury liability option for all persons, per accident is also available.

Other Types to Consider

A Standard Policy often includes: $15,000 per person, $30,000 per accident bodily injury liability; $5,000 per accident property damage liability; $250,000 per person, per accident personal injury protection coverage; $250,000 permanent or significant injury; and collision, comprehensive, and uninsured/underinsured motorist coverage are all available options.

New Jersey is a no-fault accident state, which means that providers are legally required to pay the insured's covered losses, regardless of who is at fault for the accident.

Personal injury protection is also required in New Jersey. This type of protection pays your bodily injury damages as well as your passengers', including all medical expenses, ambulance and nursing services, medications, medical supplies, dental and optometric treatment, and prosthetic devices. This can also help with lost wages and any necessary funeral costs.

Since the State of New York does not require a liability insurance plan, New Jersey drivers must have uninsured motorist coverage because of the close proximity of the states. This will help pay for damages and injuries suffered in a collision with a driver who does not have a current policy, is inadequately insured, or performs a hit and run.

As with anything, compare the options that are available as well as the insurers offering them. Make sure you are getting the coverage you need at a price you can afford, from a company you can trust.

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