Why do I need auto insurance?
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It is a New Jersey state law that you must have auto insurance. The last thing you want is be pulled over by a police officer and get a ticket because you're not covered.
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To protect yourself and the people you care about. Even if you hit a deer or an uninsured/underinsured driver hits you, you can be covered.
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To protect your assets. If you are at fault in an accident, you want to make sure you have enough coverage to pay for any injury or property damage to another party that may occur.
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For peace of mind. Knowing that you're covered in the case of an accident would make anyone drive happier and safer.
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What should I consider?
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The age of the driver. A young driver will be penalized for inexperience, while senior drivers may see rate increases because of their increased age.
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The year the vehicle was manufactured. Insurance for a newer vehicle will be more expensive than an older one (in most cases).
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The type of vehicle. You can logical deduce that the insurance on a four-door Oldsmobile will be less expensive than a sporty Porsche. Always remember that when you buy a new car, you will have to pay for the insurance also.
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The condition of the vehicle. Depending on the condition of the car, you might find you would like certain coverages and not others.
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What should I consider?
Protects the insured as the owner or driver of a vehicle for all sums which the insured becomes legally obligated to pay because of bodily injury to an injured third party. This coverage also pays defense costs against legal actions.
Bodily Injury Liability limits are usually split with the first figure limiting payments to a single person per accident and the second limiting payment in total for all persons injured per accident. An example of this would be limits of "100/300."
Collision Coverage protects your vehicle against direct and accidental loss by collision with another vehicle or fixed object.
Comprehensive Coverage (also known as Other than Collision coverage) is sometimes referred to as fire and theft. A more accurate description is loss to your vehicle caused by other than collision. This includes coverage against perils such as hitting an animal, vandalism, riot, floods, wind and hail, as well as fire and theft.
If your vehicle should be temporarily disabled for more than a day, due to a covered auto accident, this coverage will pay $15 per day for up to 30 days, or a maximum of $450 toward the cost of a replacement rental car. Higher limits of $30 per day for up to 30 days, or a maximum of $900 are also available.
Medical Payments coverage pays up to a specified amount for injuries sustained by you and covered persons in your vehicle, regardless of who is at fault. Unlike PIP (or no fault) coverage, Medical Payments coverage only pays for medical expenses.
See Personal Injury Protection Coverage
The extent of coverage varies by state, but it generally pays for medical and rehabilitative expenses, work loss, funeral expenses and replacement services incurred by you, members of your family, passengers in your vehicle, and pedestrians injured by your vehicle as a result of an accident. This coverage pays for damages regardless of who is at fault in the accident.
If your vehicle is temporarily disabled on the road, it will pay your actual expense up to $25, $50, or $75 dollars (depending on the option you select) to have your vehicle towed or for roadside labor to repair your auto.
Underinsured Motorist Bodily Injury Coverage pays for your injuries up to the policy limit when the legally liable third party has insufficient limits to cover your injuries.
Underinsured Motorists Property Damage protects your property up to your policy limit for property damage that results from an accident with a legally liable underinsured motorist or hit-and-run driver.
Uninsured Motorist Bodily Injury Coverage protects you and the occupants of your vehicle for bodily injury up to your policy limits as a result of an accident with a legally liable uninsured motorist or a hit-and-run driver.
Uninsured Motorists Property Damage protects your property up to your policy limit for property damage that results from an accident with a legally liable uninsured motorist or hit-and-run driver.
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