Car insurance is required in New Jersey. However the choice of the insurance carrier is up to you. Many people simply choose a carrier based on price, which could prove to be a big mistake. You need to consider much more than price when selecting the insurance policy best for you and your family.

A good place to start is to review the New Jersey Auto Insurance Buyers Guide provided by the Department Of Banking and Insurance.

3 Quick Tips You Should Know:

1. Decide How Much Coverage You Need

The amount of coverage necessary varies from family to family. There are minimum requirements set by the state, but this base policy may not be enough coverage. You need to consider what you are protecting with the policy such as your assets, income and health.

2. Have a good understanding of all the components of your policy

Liability coverage: This coverage pays others for damages from an auto accident that you cause. It also pays for a lawyer to defend you if you are sued for damages that you cause.

Bodily Injury Liability Coverage: Pays for claims and
lawsuits by people who are injured or die as a result of an auto accident you
cause. It compensates others for pain, suffering and economic damages, such as lost wages.

Property Damage Liability Coverage: Pays for claims and lawsuits by people whose property is damaged as a result of an auto accident you cause.

Uninsured Motorist Coverage: Pays you for property damage or bodily injury if you are in an auto accident caused by an uninsured motorist.

Underinsured Motorist Coverage: Pays you for property damage or bodily injury if you are in an auto accident caused by a driver who is insured, but who has less coverage than your underinsured motorist coverage.

Personal Injury Protection (PIP): This is your medical coverage for injuries you (and others) suffer in an auto accident. PIP pays if you or other persons covered under your policy are injured in an auto accident. It is sometimes called “no-fault” coverage because it pays your own medical expenses no matter who caused the auto accident. PIP has two parts — (1) coverage for the cost of treatment you receive from hospitals, doctors and other medical providers and any medical equipment that may be needed to treat your injuries and (2) reimbursement for certain other expenses you may have because you are hurt, such as lost wages and the need to hire someone to take care of your home or family.

Collision Coverage: Pays for damage to your vehicle as the result of a collision with another car or other object.

Comprehensive Coverage: Pays for damage to your vehicle that is not a result of a collision, such as theft of your car, vandalism, flooding, fire or a broken windshield. However, it will pay if you collide with an animal.

Verbal Threshold or Lawsuit Threshold: If you select a policy with the verbal threshold and you are injured in an accident, even if the accident wasn’t your fault you can not file a lawsuit unless your injuries meet the following criteria: The loss of a body part, significant scaring, a fracture or a permanent injury. A permanent injury is defined as the loss of use of a body function. No-threshold would simply mean that there is no limitation on your right to sue, regardless of what kind of injury you sustained.

3. Research the insurance company and get competitive quotes for the same coverage

Ask around to find out what people think about their insurance company. You can also research company information online or speak with insurance agents. How ever you decide to gather information and quotes make sure you compare apples to apples and take notes. Create a list of questions to ask each insurance company or agent. Make sure you ask the same questions. Make sure you get a clear explanation of anything that you do not fully understand.

In summary, buying automobile insurance isn’t as easy as shopping for the lowest price. Remember you are insuring the health and wellbeing of you and your family. If you suffer a serious injury and do not have the necessary coverage you may not be afforded the opportunity to recover from your injuries or get compensated for your pain, suffering and lost wages. It is an important decision that requires time and research. If you have any question please contact one of our professionals.