Everyday we receive 100’s of phone calls in our national call center in Lansdale, Pennsylvania. Although many of the calls are to make changes and payment on their current policy, most of our conversations start out with one simple question, “Do you need car insurance?”  The second question is “what type of car insurance do you need”?  Although licensed drivers whom have a registered car in the State of New Jersey and must carry the state’s minimum amount of Bodily Injury and Property Damage,  may need more coverage.  For example; if you own a home or have business which needs protection – you may want to carry higher limits of  auto insurance to protect your assets.  Another type of auto insurance coverage is Physical Damage and Fire & Theft.  These coverages are commonly known as Collision and Comprehensive. If you are driving a late-model car or you have a loan on a vehicle, the bank or leasing company will require you protect their investment.  Even though the car may me registered in your name, the bank or leasing company whom financed your car want that car repaired if damaged or stolen.

I have a good question for you; do you need car insurance if you rent a car? Answer; “yes and no.”  When you rent a car, basic liability is always covered.  You may buy a Collision Damage Waiver for an extra charge per day.  On the other hand, many auto insurance companies in both Pennsylvania and New Jersey will pay the collision damage or replace the rental car if its stolen. This will save you from spending money on insurance coverage you don’t need.  Many drivers whom rent a car occasionally think if they purchase the collision damage waiver and they are involved in an accident – the accident won’t count against their driving record. Nothing can be farther from the truth.  An accident in an accident regardless of which auto insurance company pays. If at fault or not at fault, the incident is reported and follow you for 36 months.