| When looking at New Jersey auto insurance | | | | 2. Coverages to pay you where the accident was |
| quotes you will be presented with many choices, | | | | caused by other people |
| hopefully this article will help you make the right | | | | Uninsured Motorist Coverage |
| ones. | | | | This coverage will pay you for bodily injury and |
| In New Jersey it is mandatory that you have | | | | property damage that you suffer as a result of |
| auto insurance. There are two common types of | | | | an accident caused by an uninsured driver. |
| auto insurance policies in New Jersey, the cheaper | | | | Underinsured Motorist Coverage |
| Basic policy that provides enough coverage to | | | | This coverage pays you for bodily injury and |
| meet the minimum insurance requirements of | | | | property damage that you suffer as a result of |
| New Jersey Law and the more expensive | | | | an accident caused by a driver who has insurance |
| Standard policy which is the policy chosen by | | | | but whose coverage is less than your uninsured |
| most New Jersey drivers. Both policies offer | | | | motorist coverage. |
| options to further increase your protection. | | | | The above coverages are not available on the |
| In New Jersey auto insurance policies are divided | | | | Basic policy but are optional on the Standard. |
| into different coverages depending upon the type | | | | 3. Coverages to pay you and/or other people |
| of claim that will we paid to you and/or others. | | | | irrespective of who caused the accident |
| The coverages fall into three areas. | | | | Personal Injury Protection (PIP) |
| 1. Coverages to pay other people a result of an | | | | This coverage (sometimes known as "no-fault" |
| accident caused by you | | | | coverage) is for injuries that you and others may |
| Liability - Bodily Injury Liability | | | | sustain in an auto accident irrespective of who |
| This covers you for claims and law suits by | | | | caused the accident. It covers the cost of hospital |
| people who are injured or die as a result of an | | | | and medical expenses incurred in treating injuries |
| accident that was caused by you. The coverage | | | | and other incidental expenses such as lost wages. |
| is usually expressed as two amounts, one for all | | | | The Basic policy offers a maximum coverage of |
| persons injured in an accident and another | | | | $15,000 per accident and up to $250,000 for |
| specifying the limit payable to an individual. For | | | | significant or permanent injury. The Standard |
| example your policy may state that you are | | | | policy coverage can go as high as $250,000 per |
| covered for a total of $100,000 but specifying a | | | | accident and $250,000 for permanent injury. |
| limit of $20,000 for each person. | | | | Collision Coverage |
| With a basic policy coverage is not included but is | | | | Coverage to pay for damages caused to your |
| available as an option. Coverage is included in a | | | | vehicle when involved in a collision with another |
| standard policy starting from $15,000 per person | | | | vehicle or object. |
| and $30,000 per accident. | | | | This is available as an option on the Standard |
| Liability - Property Damage Liability. | | | | policy. It is not included in the basic policy but may |
| One again this covers you for claims and lawsuits | | | | be offered as an option by some insurers. |
| by people whose property is damaged in an | | | | Comprehensive Coverage |
| accident caused by you. | | | | This pays for damage to your vehicle that is not |
| This coverage is included in both Basic and | | | | the result of a collision, such as fire, theft, |
| Standard policies, the amounts being $5,000 on | | | | vandalism and flooding. An option on Standard |
| the basic policy and from $5,000 to $100,000 on | | | | policies and also on the Basic policy with some |
| the Standard policy. | | | | insurers. |