New Jersey Car Insurance
At one point New Jersey had the highest automobile insurance rates in the United States. In an effort to lower those rates, the state implemented the Automobile Insurance Cost Reduction Act. Consumers now have a choice between a very basic, inexpensive car insurance plan and the standard insurance plan that has always been available.
The basic insurance plan does not provide nearly as much coverage as the standard. It is meant to help those that cant afford the more expensive standard insurance. It is also beneficial to those that are just starting out who do not have to insure anyone beside themselves.
The basic insurance plan includes optional bodily injury liability coverage of $10,000, $10,000 property damage liability, and $15,000 personal injury protection (PIP) per person, per accident up to $250,000 for permanent or major injury. The basic plan does not include insured/underinsured motorist coverage, comprehensive coverage or collision coverage.
For those drivers that have a longer driving history or family responsibilities, the standard insurance plan is a much better plan. The standard insurance may also be required if you have a lease or loan on your vehicle. It is significantly more expensive, but the coverage is much better than that of the basic insurance plan.
The standard insurance plan includes bodily injury liability coverage of $15,000 per person, per accident and $30,000 for all persons, per accident as well as property damage liability coverage of $5,000 per accident. With these two types of coverage you do have the option of selecting higher limits but they will cost you more.
The standard insurance plan also includes personal injury protection coverage of $250,000 (unless you select a lower limit) and up to $250,000 for major or permanent injury regardless of whether you selected a limit below $250,000 or not. While it does not automatically include underinsured/uninsured motorist coverage, collision coverage, or comprehensive coverage, you do have the option of purchasing them in addition to the standard insurance.
While you do have the ability to choose which insurance plan you want in the state of New Jersey, it is obvious that the standard plan has more to offer, if you can afford it. However, can you afford not to choose the standard plan? If you are in a serious accident with just the basic insurance plan, the cost out of your pocket could far outweigh the cost of the standard insurance policy. Think long and hard before you choose the basic plan. In the end, it could end up costing you more than you ever bargained for.