New Jersey Additional Auto Insurance Coverages

EXTRA PIP PACKAGE COVERAGE – These are added benefit options provided under the STANDARD POLICY

ESSENTIAL SERVICES – Pays for necessary services that you normally do yourself, such as cleaning your house, mowing your lawn, shoveling snow or doing laundry if you are injured in an auto accident.

DEATH BENEFIT In the case of death, family members or estates will receive any benefits not already collected under the income continuation and essential services coverages.

FUNERAL EXPENSE BENEFIT Pays for reasonable funeral expenses up to the limit you select if you die as a result of an auto accident.

UNINSURED MOTORIST COVERAGE Pays you if you are in an auto accident caused by a driver who does not have the minimum level of insurance required by law. Claims that you would have made
against the uninsured driver who caused the accident are paid by your own policy. Uninsured motorist coverage does not pay benefits to the uninsured driver.

UNDERINSURED MOTORIST COVERAGEPays you if you are in an auto accident caused by a driver who is insured, but who has less coverage than your underinsured motorist coverage. Damages greater than the limits of the other driver’s policy are covered by your policy up to the difference between the limits of your underinsured motorist coverage and the other driver’s policy limit.

COMPREHENSIVE(also known as comp or other than collision) and COLLISION coverage is not required by law, but may be required under the terms of an automobile leasing or financing contract.

Collision coverage pays you for damage that you cause to your automobile. You can also make a claim under your own collision coverage for damage to your car from an auto accident you did not cause. This may take less time than making a property damage liability claim against the driver who caused the auto accident. Your insurer then seeks reimbursement (subrogation) from the insurer of the driver who caused the auto accident.

Comprehensive coverage pays you if your automobile is stolen or for damage to your automobile caused by things not covered under collision coverage, such as vandalism, flooding, fire, a broken windshield or damage from an animal.

DEDUCTIBLE — The STANDARD deductible for comprehensive and collision coverage is $750.  Higher and lower deductibles are available as options.  Higher deductibles can cut your premium.

NAMED DRIVER EXCLUSION Prevents certain drivers on your policy from being covered by collision and/or comprehensive coverage on a specific automobile. This can lower your premium, but if the excluded driver operates the automobile and is involved in an auto accident, you are not insured for collision and/or comprehensive coverage; which means you could be personally responsible.

For the STANDARD POLICY, you must make a choice about the rights you will have if you are injured in an automobile accident.  (The BASIC POLICY includes the LIMITED RIGHT TO SUE option.)

UNLIMITED RIGHT TO SUE Under the No Limitation on Lawsuit Option, you retain the right to sue the person who caused an auto accident for pain and suffering for any injury.

LIMITED RIGHT TO SUE By choosing the Limitation on Lawsuit Option, you agree not to sue the person who caused an auto accident for your pain and suffering unless you sustain one of the permanent injuries listed below: (Choosing this option does not affect your ability to sue for economic damages such as medical expenses and lost wages.)

  • loss of body part
  • significant disfigurement or significant scarring
  • displaced fracture
  • loss of a fetus
  • permanent injury (Any injury shall be considered permanent when the body part or organ, or both, has not healed to function normally and will not heal to function normally with further medical treatment based on objective medical proof.)
  • death

For more information regarding the auto insurance policy rules, regulations and options; send you questions to: or call 800-807-0762