Some people have been hurt, because of an accident and most of their time they got hurt in a car accident. But did you know? that your rights to compensation in a car accident, your payment of medical bills, you’ll lose wages and your right to sue, depends upon your coverage and not the guy who did this to you.
Please allow me to explain. So, it’s that time again, when you get that dreaded car insurance renewal form. Making matters worse there’s a bill included in that package and it’s higher than last year’s bill. So you get frustrated and decide that you are going to shop around to save money or worse you decide to reduce your benefits to save a few dollars.
Be Careful Selections of Car Insurance in New Jersey
First, of all do not be fooled by funny or clever TV commercials. When buying car insurance, you are purchasing a sophisticated and complex product that is designed to protect you, your family members and your assets. You need to know that the car insurance you buy in New Jersey, affects you and all of your household family members. Generally, good quality insurance cost more than bare-bones minimum coverage. For that reason, I strongly recommend that you buy your insurance through an independent insurance agent. They will often shop your coverage through several insurance carriers and give you the best coverage for the lowest premium.
Now in New Jersey, we have no-fault insurance. It is your own car insurance that will pay your medical bills, your lost wages regardless of who caused the accident. The medical benefits and lost wage benefits are called personal injury protection. We commonly call this pip benefits. So what happens when you buy insurance? There are four decisions that you need to make.
- Is the amount of insurance you have in case you are sued, that is called your liability coverage.
- Is the amount of personal injury protection or PIP coverage that you have in case you are hurt.
- Is the amount of underinsured or uninsured motorist coverage you have.
- And finally the threshold, you select will determine if you or your family members can sue for non- permanent soft tissue injuries.
You also need to know that you should be clear on your application or renewal. To make certain that you list all members of your household that hold driver’s licenses and that you list all of your designated drivers. This may even include children just getting their permits. If you have any car that is registered in New Jersey it must be insured. If you fail to ensure a registered car, you will not be able to bring a claim for injuries and you will be denied medical benefits no matter how life-threatening or serious your injuries may be.
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1. Sure All Cars and All Potential Drivers
Even if you are lending your car to a family member for an extended period of time, list them as a designated driver. If you don’t, they may not be given insurance coverage. You also need to buy enough insurance to equal the value of all of your property and assets as well as your salary. Too often I’ve seen, people who own bank accounts houses will have good salaries take only $15,000 in bodily injury coverage and $5,000 in property damage.
Why is that bad? Well, if some cut-rate insurance company gave you the minimum coverage and you rear-end someone in a Mercedes Benz and that car is totaled and that driver becomes seriously injured, it will be your responsibility to pay for all of their losses above your coverage. So you may be responsible for the extra $75,000 in property damage to the Benz, and perhaps a hundred thousand or more for the injuries to the driver you rear-ended. So my advice to you is to make sure you have enough liability coverage and that you match that to your own insured and underinsured coverage amounts as well.
Please understand that if you are hurt by someone that has only the minimum liability coverage that’ll be your underinsured motorist coverage from your own insurance company, that will pay you for your pain and suffering related to your injuries. I suggest that you buy $300,000 single limit coverage as a minimum. That way you and your family will be protected. Never make your health insurance company from work primary over your car insurance policy.
2. Always Make PIP, Primary Over Your Major Medical Coverage
Next is PIP Insurance. We all know that medical bills are quite high and it does not take much to rack up over a hundred thousand in medical bills. Up until a few years ago, all policies had $250,000 a medical bill coverage. But recently there was law was changed, so that insurance companies can sell lower pip medical coverage and they love doing it because they can save themselves a lot of money if you get hurt.
So when you call companies such as Geico, Progressive, State Farm, Allstate price out your existing coverage and not the reduced coverage. In fact, ask them for the best coverage and then have them sharpen their pencils on a premium with a quote, and not on the benefits and coverage you get.
3. Uninsured and Underinsured Motorist Coverage
Number three is your uninsured and underinsured motorist coverage. This comes into play if you were hurt by someone that just did not buy or did not pay for their insurance so that they are virtually uninsured. If that happens, it’ll be your uninsured motorist coverage from your own insurance company that will pay for your harms and losses related to your injuries.
But this is what you need to know. You can only buy as much underinsured or uninsured motorist coverage to equal your liability coverage. So take that into consideration when selecting your liability coverage amount. That’s why we recommend that you purchase a minimum of $300,000 and liability coverage so that you can insure yourself for that amount as well.
4. The Threshold
In New Jersey, you can purchase no threshold or a limited threshold. Sometimes, the limited threshold is called the verbal threshold or limitation on tort threshold. Now, if you purchase a limited threshold you cannot sue for non-permanent injuries, you can still sue for your economic losses such as lost income. But with a limitation on lawsuit threshold, you cannot sue for:
- pain and suffering
- future losses
Unless you would have to suffer an injury to a body part causing it no longer to function normally again without further medical treatment. And the injuries that break this threshold include death dismemberment, significant scarring, a fracture that is displaced or loss of a fetus.
Usually, an injury to the back such as a ruptured or herniated disk that was caused by the accident can break the threshold. I recommend that you select no threshold, but we understand that by doing so you’ll be increasing the cost of your insurance, so this is your choice.
By the way, the selection of threshold you make will apply to all members of your household no matter where or in whose car they are injured. But there is an exception to this threshold and that is if the accident was caused by a truck or commercial vehicle. If that happens, then no threshold will apply.
So here’s my advice in a nutshell:
- Buy insurance from an independent insurance agent
- Buy a minimum of $300,000 of single limit coverage
- Make sure you get $250,000 in pip medical coverage that is primary over your major medical coverage
- Make sure your underinsured and uninsured coverage equals your liability coverage
- If you can afford it elect no threshold as your threshold
- Make sure all cars household members and drivers are listed on the policy
- Review your declaration page when you get it and make sure it’s correct
How To Get NJ Cheap Car Insurance
I’m going to show you how to get cheap New Jersy car insurance quotes with top car insurance companies.
The minimum insurance coverage required by law in the state of New Jersey is liability insurance in the following amounts.
- $30,000 injury liability coverage per person in an auto accident
- $60,000 coverage for all persons in an auto accident
- $25,000 coverage for property damage in an auto accident
Liability insurance is all you need to get your car on the road. However, you may want to include the following coverages in your policy. Collision coverage which pays for repairs to your car when you’re involved in an accident with another car or object. Comprehensive coverage which pays for repairs to your car from damage caused by theft vandalism fire or acts of nature. Uninsured motorist coverage which pays for costs related to injuries and property damage to you your family and your passengers, caused by an uninsured underinsured or hit-and-run driver.
Tips for Getting Cheap Car Insurance Quotes NJ
Because insurance rates can vary as much as a thousand dollars or more between insurance companies in North Carolina. The best way to get cheap insurance is to compare rates from a number of different companies. You can do this quickly and easily by going to an insurance comparison website and filling out a simple online form to get those quotes. Here are three tips it will save you even more money on your insurance.
1. Raise Your Deductible
Raising your collision and comprehensive deductible from 200 to 500 dollars can save you up to 30% on your yearly premium, raising it to a thousand dollars could cut your premium in half.
2. Consolidate Your Policies
Ensuring both your car and your home with the same company will get you a 10% to 15% discount with most insurance companies.
3. Get Discount
Insurance companies offer a number of discounts for a variety of reasons. ask about them and take advantage of all the discounts you’re eligible for.
You can check online with some sites like compare.com to compare car insurance quotes from top-rated companies. If you have any questions about this, call your insurance agent. Thanks for your time. Please check another my article and some tips for you.