The law of the Garden State allows for individuals to choose from two different types of policies depending on their particular situation and needs of protection. The two options are a Basic and Standard policy; which is chosen is up to the motorist and each provide a different level of coverage. Once should take the time to evaluate their needs and assets to be protected before choosing the type of policy that will suit them best.

When considering which kind of New Jersey auto insurance policy to purchase there are a few important things to consider before coming to a choice. “BASIC” covers the minimum amount allowed by the state and should be considered by those who have few assets to protect. This can be ideal for newer drivers who do not have assets and cannot afford higher amounts of protection. “STANDARD” protects much more extensively and also gives motorists the options to raise limits and purchase additional coverage.

The Difference Between Basic and Standard New Jersey Car Insurance

A basic policy provides Property Damage Liability in the amount of $5,000. This pays for damages that the policyholder causes to another’s property as a result of a traffic accident. Also included is $15,000 for Personal Injury Protection (PIP); this pays for medical expenses of the insured regardless who is at fault for injuries resulting from a collision. One should be aware that this does not include compensation if the insured injures someone with their automobile, but is one so chooses, they can purchase $10,000 in Bodily Injury Liability as an option.

Standard policies provide much more coverage than basic and are chosen by most drivers in the state. First, the consumer must choose their limits of liability. The minimum requirement is $15,000 for bodily injury to one person, $30,000 for injuries per accident and $5,000 for property damage; a higher limit can be chosen but will most likely raise an individual’s rates. A standard policy also includes Personal Injury Protection; the minimum which can be purchased is a limit of $15,000 and can be pushed up to $250,000 depending on a person’s preference. One would also need to choose a deductible for PIP in an amount no less than $250. Lastly, an individual will need to choose a limit for Uninsured/Underinsured motorist. The minimum that can be chosen is the same as the liability requirements but cannot exceed the amount of liability to be purchased.

The laws of the state can be very complex and therefore consumers should take the time to do a little research in order to better understand the types of protection to choose from. One can refer to the New Jersey Auto Insurance Shopping Guide for further assistance in helping them make an educated decision of what kind of policy will benefit them most.