Choosing Auto Insurance in New Jersey can be a daunting task for the average consumer. It takes years and specialized training in order to understand all of the technical language of a typical policy. Below, you will find three important and potentially confusing insurance terms explained in simple language. Auto Insurance New Jersey
Liability insurance, legally required in New Jersey, pays for any injuries or damages you cause to another driver. This type of coverage is further broken down into property damage (PD) and bodily injury (BI). By law, you need to have at least 15,000 dollars per person and 30,000 dollars per accident in bodily injury coverage and at least 5000 dollars per accident in property damage coverage.
Personal Injury Protection (PIP) is also required in New Jersey. PIP protects you and your passengers, if injured in an accident. This is especially useful if you have no medical insurance, or if you have a high co-payment. In New Jersey, you need to have at least 15,000 dollars in PIP coverage.
Physical damage coverage is optional coverage that you may buy. This type of coverage pays for any covered damage above a deductible. Your deductible refers to how much you must pay for the damage before the policy takes over. Physical damage coverage is broken down into comprehensive and collision coverage. Comprehensive coverage pays for damage that occurs due to theft, vandalism or weather damage. Collision coverage pays for damages to your vehicle in the event of an accident, even if you are at fault.
Auto insurance policies are legal contracts, so they can be difficult to understand. If you do your research, you will have easier time purchasing car insurance. Make sure to make a well informed decision about your car insurance purchase, so that if you get into an accident, you will be protected.