Posts Tagged ‘New Jersey Car Insurance’

NJ Auto Insurance Coverage: Standard Policy

Thursday, September 29th, 2011

A standard policy for NJ auto insurance coverage gives consumers a number of options for coverage levels. It includes bodily injury, property damage and Personal Injury Protection (PIP) coverage. Uninsured/underinsured motorist coverage is also available, and a driver can choose to add collision and comprehensive coverage to the policy.

Bodily injury liability coverage pays for medical bills and related expenses incurred by the occupants of the other vehicle following an accident. Drivers in NJ can choose to buy a standard policy which provides between $15,000 in coverage per person and $30,000 in coverage per accident and $250,000 per person and $500,000 per accident in coverage.

Property damage liability coverage pays for repairs to the other driver’s vehicle and public property following an accident. The standard plan can provide between $5,000-$100,000 for this purpose.

PIP coverage protects the policyholder and the occupants of his or her vehicle. This part of the policy pays for their personal injury claims. Coverage levels start at $15,000 and go as high as $250,000 per person or per accident.

Uninsured and underinsured motorist coverage pays out when the at-fault driver in an accident doesn’t have coverage or doesn’t have enough protection in place to pay for the damages he or she caused. Drivers can get the same level of protection as for bodily injury liability coverage.

Collision and comprehensive coverage protect the driver’s vehicle from physical damage. It covers damage caused by striking another vehicle or an object, as well as wind, flooding, vandalism, falling objects, fire and theft.

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Posted in New Jersey, USA |

How New Jersey Auto Insurance Companies Set Rates

Thursday, April 28th, 2011

When New Jersey auto insurance companies are determining how much to charge policyholders for their coverage, a number of factors are considered. One of them is the make and model of the vehicle to be covered. Some types of cars are more expensive to insure because they cost more to repair or are more likely to be involved in an accident, such as sports cars. Other types of vehicles, such as SUVs, are more likely to damage other cars and cost more to insure because of this fact.

Another important consideration when NJ auto insurance providers are setting rates for their policyholders is the applicant’s driving history. Insurers look at past events as a way to predict how a particular driver will behave going forward. An individual who has a driving history which includes accidents and/or moving violations will pay more for his or her coverage than a driver who has maintained a clean record for a number of years. The insurance company will also want to know about the driving history of other adult members of the household, since they will also have access to the main policyholder’s vehicle.

Location is another factor considered by car insurance providers. If a car is being garaged in a neighborhood which has a history of numerous car thefts, then the driver will be paying higher rates for his or her coverage. Urban residents will also pay more for their coverage, since more cars on the road means a greater likelihood of being involved in an accident.

 

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Posted in Car Insurance Rates, New Jersey, USA |

New Jersey Car Insurance Minimum Requirements

Tuesday, April 12th, 2011

New Jersey car insurance buyers are required to have car insurance coverage in place. This state has adopted a choice no-fault system, which means that consumers can choose to retain the right to sue to collect damages for the injuries and lost wages incurred following a motor vehicle accident if they wish.

The minimum level of protection required by state law for a basic car insurance plan is $15,000 in Personal Injury Protection (PIP) coverage. This is the portion of the policy that pays for medical bills when the policyholder and the occupants of his or her vehicle are injured in an accident. Along with PIP coverage, NJ car insurance buyers must also purchase at least $5,000 in property damage coverage.

Since some drivers will choose to retain the right to sue for damages, car insurance buyers in the state must also have third party liability coverage in place. Bodily injury liability protection pays for the cost of medical bills and lost wages incurred by the occupants of the other vehicle in an accident. The minimum level of coverage required by law is $15,000 to pay for damages for a single accident victim and $30,000 for all damages stemming from the same accident.

Property damage liability coverage pays for the cost of repairs to the other vehicle and any public property damaged in the collision. The minimum amount of protection required by law is $5,000.

 

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Posted in New Jersey, USA |

New Jersey Car Insurance and SR-22

Monday, November 15th, 2010

If you have been charged with a DUI (Driving Under the Influence) offense, you will probably need to get an SR-22 certificate. This form is issued by a car insurance company and is filed with the Department of Motor Vehicles (DMV).

The purpose of having this document in place is to prove that you have insurance coverage in place. If you change insurance companies or have your policy cancelled or terminated during the three-year period that the SR-22 is in place, the insurance company must let the DMV know of the change in your insurance status.

If you need to have an SR-22 filed with the DMV, you will be considered a high-risk driver. Your current New Jersey car insurance company may no longer be prepared to cover you. In that case, you should make a point of shopping around for coverage.

Even drivers who need an SR-22 don’t want to pay more than they have to for car insurance coverage. There are companies that specialize in providing non-standard coverage, and rates can vary significantly between providers.

As long as you avoid any other incidents that would keep you in a high-risk group, such as further DUI charges, accidents or moving violations, you will eventually qualify for standard New Jersey car insurance pricing (and lower rates).

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Posted in New Jersey, USA |

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