New Jersey Insurance

NJ Standard and Basic Policy Information

by admin

There are two common types of auto insurance policies in New Jersey.  They are referred to as Standard and BASIC.  Both offer options as well.

·STANDARD POLICY —The Standard Policy provides a number of coverage options and the opportunity to buy more protection. The Standard Policy is the type of
policy chosen by most New Jersey drivers.

·BASIC POLICY — The Basic Policy usually costs much less than a Standard Policy, but provides limited benefits. It is not for everyone, but it does offer enough coverage to meet the minimum insurance requirements of New Jerseylaw. The Basic Policy could
be an option for those with few family responsibilities and few assets to protect (including income from a job).

TYPE OF COVERAGE

STANDARD POLICY

BASIC POLICY

BODILY INJURY LIABILITY

As low
as: $15,000 per person, $30,000
per accident

As high as: $250,000
per person,$500,000 per accident

Coverage
is not included, but $10,000
for  all persons, per accident, is available
as an option
PROPERTY DAMAGE LIABILITY  

As low as: $5,000 per accident

As high as: $100,000 or more

$5,000
per accident
PERSONAL INJURY  PROTECTION  

As low
as: $15,000 per person or accident

As
high as:  $250,000 or more

Up to
$250,000 for certain injuries* regardless
of selected limit

$15,000 per person, per accident

Up to $250,000 for certain
injuries*

UNINSURED/ UNDERINSURED
MOTORIST COVERAGE

Coverage is available up to amounts selected  for liability coverage

None

COLLISION

Available as an option

 Available
as an option(from
some insurers)

COMPREHENSIVE

Available as an option

 Available
as an option(from
some insurers)

LIMITS —The maximum dollar amount
the insurer will pay following an auto accident. Limits vary with each coverage within the policy.

DEDUCTIBLES — Payments you have to make before the insurer
pays. For example, a $750 deductible means that you pay the first $750 of each claim.

DEDUCTIBLE OPTIONS —In addition to any savings you may realize from how much coverage you buy, deductibles also provide savings opportunities. Cost savings can be achieved by choosing higher deductibles. Thus, if you feel you need a high level of PIP
coverage but want to cut your premium, you can save money by agreeing to pay more out-of-pocket through a higher deductible if you are injured in an auto accident. Your insurer will pay the medical bills over the deductible amount you choose. No matter what deductible you choose, there is also a 20 percent co-payment for medical expenses between the deductible selected and $5,000. That means you pay 20 percent, and your insurer pays 80 percent.