What Does New Jersey Standard Automobile Insurance Mean?

New Jersey Automobile insurance standard coverage is the basic amount of insurance coverage that is required by New Jersey law in order for an individual to legally operate a motorized vehicle. You can simply it even further with the blanket statement as being the mandatory amount of auto insurance coverage a driver must possess.

The most important part of a New Jersey car insurance policy is the liability coverage. This coverage protects the consumer against the cost of damages and injury that is a direct result of that same consumer if they are the cause of a vehicular accident. For instance if you're driving down the road and accidentally run into another persons car this insurance coverage will pay for the damages that result due to the accident.

The liability coverage is further broken down into two subsections. The first is bodily injury liability. This covers and personal injury inflicted by yourself upon others during a car accident. The second subsection is property damage liability. As you may have guessed this is your insurance protection against any damage you cause to another individuals property, usually their car.

Although coverage amounts can vary it is generally suggested that a good baseline of New Jersey automobile insurance standard coverage should be 100/300/100. This can be read as $100,000 worth of bodily injury caused to another person, $300,000 towards bodily injuries for everyone involved and $100,000 for property damage. With rising medical costs and outrageous car prices this would be the absolute minimum insurance protection one should carry in their New Jersey automobile insurance standard coverage.

If you are in a financial crunch and need a way to save money on your New Jersey auto insurance policy try to avoid retaining only the minimum amount of coverage required by New Jersey, the Basic plan. Instead try raising your deductible amount (the amount you pay first in the event of an accident before your insurance company kicks in with its payment). You will find that by raising the amount $1000 or $2000 will significantly lower the monthly costs of your automobile insurance standard coverage.

Two other policies that exist include the medical payments insurance which provides for the immediate treatment of injuries sustained during an auto accident. Anyone riding in your vehicle to include yourself is covered, regardless of who is at fault for the accident. The second policy is commonly known as New Jersey PIP or New Jersey personal injury protection, is similar to medical payments coverage, but usually provides broader coverage. Many PIP policies provide compensation for lost wages, funeral expenses, and pain and suffering. Again you will need to check with your state insurance laws for further clarification if you are required to have this additional coverage.

Finally as a safety measure against law breaking individuals who illegally drive without insurance there is uninsured motorist insurance when the other driver has no liability coverage and underinsured motorist coverage which pays for the cost of your injuries that exceed the other driver's coverage maximum.

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What Does New Jersey Standard Automobile Insurance Mean?

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