New Jersey car insurance state law
What is auto insurance?
Auto accidents can result in damage to property as well as personal
injury. New Jersey car insurance covers the expenses that may occur
due to these as well as theft, vandalism, or natural disasters. The
insurer of your personal New Jersey car insurance policy charges a premium
which you pay as a lump sum or in regular installments. In return, the
insurance policy agrees to pay for damage and injury associated with
accidents or other occurrences as stipulated in the policy.
Why do you need it?
State law require that you possess a New Jersey car insurance policy
for basic coverage. It is becoming more prudent however, to purchase
a policy that is greater in coverage than the minimum requirement. Damages
greater than your policy covers can be your responsibility and result
in devastating personal asset loss.
What do you need to know?
But insurance coverage in proportion to your needs. Don't buy more
than you need but don't skimp on sections that expose you to greater
liability.
It is important to understand the New Jersey car insurance state law,
exclusions and limitations of your policy. Liability coverage covers
damage and injury you cause, medical payments coverage covers medical
expenses regardless of who was at fault, uninsured/underinsured motorist
coverage covers losses caused by a driver who is uninsured or has inadequate
insurance, and coverage for damage to your auto.
What is a deductible?
Expense that you are willing to pay before the insurance picks up the
bill, generally $100, $250, $500, or $1000.
Cost analysis
How much insurance do you need depends on a number of factors including
the value of your car, the amount of deductible you are willing to pay,
and other factors. Calculate the financial risk you are willing to live
with in terms of worse case scenario. Your agent can help you weigh
statistical relationships about your situation to come up with a policy
that is enough but not too much.
Shop smart
There are plenty of agents and policies out there. Compare your needs
with the quality of service and reputation of the insurer. Consult friends,
family members and coworkers who have be down that road and can offer
advice based on their experiences.
Buy when?
Review your policy if you feel you are not getting the value you
want. Shop for a policy whenever you buy a vehicle or your situation
changes.
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