Car Insurance Requirements in New Jersey
When buying an insurance policy for your vehicle, keep in mind that you cannot buy a policy that offers coverage lower than what is mandated by law. Hence, knowledge of the minimum requirements for coverage is absolutely necessary.
As to the extent of coverage against Personal Injury Protection, you need to have coverage of at least $10,000. The state of New Jersey mandates that car owners should have liability coverage for compensation payable to third parties and it should not be lesser than $5,000. Personal injury protection coverage will cover the car owner, authorized drivers, and passengers. This is the basic coverage limit for car insurance policies in the state. However, this will not cover losses and damages that arise due to an accident caused by uninsured motorists.
In addition to the basic plan, there is the option to buy standard coverage. This plan offers extended coverage. Under this scheme, car owners are required to buy liability coverage to the extent of $15,000 and $5,000 against liabilities for bodily injuries and property damages. In addition, the policy should include a minimum coverage of $15,000 for personal injury protection. This will apply to the registered policy holder and his/her nominated drivers and passengers.
To cover the risks arising from uninsured/underinsured drivers, you must have personal injury protection coverage to the extent of $15,000. For safeguarding the properties from such drivers, coverage of $5,000 for property damages is required.
If you choose a standard policy, you have the option to select between limited and unlimited rights to sue. If you are opting for unlimited rights, you will be entitled to sue the at-fault driver, even for your pain and sufferings, due to injuries.
Car owners have the option to add $10,000 to the tally of liability coverage. But such plans will suit only those car owners with limited assets. The state of New Jersey encourages car owners to buy coverage over the minimum mandated amount. The additional coverage value will enable car owners to escape the threats of liquidating their assets to make the compensation payments to third parties affected by the accident.
Remember, the best car insurance in New Jersey is that policy that will suit your requirements and come within reasonable rates.
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