Personal Auto Insurance
Most states require you to carry auto insurance and mandate certain minimum coverages. Liability coverage is mandatory in all states, while medical coverage (such as Personal Injury Protection or Medical Payments) and collision/comprehensive are often optional, depending on your state.
In New Jersey, Personal Injury Protection (PIP) includes a full range of medical coverage options, including the ability to designate your health insurance as primary. While many online insurers make it easy to lower coverage limits to save money, it’s wise to consult an experienced agent to understand the trade-offs involved.
What Is Liability Coverage?
Liability coverage pays for injuries or property damage that you cause to others in an accident. This covers you if you’re sued by someone who sustained injuries in an accident you caused. Property damage liability covers damage to vehicles, fences, homes, light poles, etc.
What Are Medical Payments & PIP?
Medical payments pay for limited medical expenses. This coverage varies depending on the state you insure your car in. Personal Injury Protection (PIP) is required in NJ and typically offers broader benefits than medical coverage, including physical therapy and others.
What Is Uninsured/ Underinsured Motorist Coverage?
Uninsured Motorist (UM) covers injuries and sometimes property damage caused by a driver without insurance. Underinsured (UIM) pays the difference when the at-fault driver’s coverage is insufficient to cover your losses.
What Is Comprehensive Coverage?
Comprehensive coverage pays for non-collision damage to your vehicle, such as: theft, vandalism, fire, flooding, falling objects, if you strike an animal while driving, etc.
What Is Collision Coverage?
Collision coverage pays to repair your vehicle up to its market value if it is damaged in an accident where you were at fault. It also covers if your car is damaged in a hit-and-run accident.
What Is A Deductible, And How Does It Work?
A deductible is the amount you agree to pay out-of-pocket before your insurance covers a claim. Higher deductibles can lower premiums, but they increase your financial responsibility if you file a claim.
What If Someone Else Drives My Car And Gets Into An Accident?
In most cases, auto insurance follows the vehicle, not the driver. If you give someone permission to drive your car, your insurance is typically the primary coverage. However, certain restrictions may apply, especially for excluded drivers or frequent users not listed on your policy.
Does My Policy Cover Rental Cars?
Typically, auto policies cover rental cars in the US and Canada for non-business purposes in the same way that cars are covered on your standard auto policy. For more information about rental car guidelines, click here.
How Does NJ’s “Verbal Threshold” Affect My PIP Claim?
When you select verbal threshold, your ability to sue another party in an accident is limited, with the exception of permanent injuries. Zero tort costs much more but allows you to retain the right to sue the other party under any circumstance.