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Auto insurance
Auto insurance

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AUTO INSURANCE NEW JERSEY BUYER’S GUIDE Chris Christie Governor Richard J. Badolato Commissioner Kim Guadagno Lt. Governor WHAT'S INSIDEWHERE DO I START?.....................................1UNDERSTANDING YOUR POLICY...............2-6Types of CoveragesStandard and Basic PoliciesWhat are Limits and Deductibles?UNDERSTANDING YOUR OPTIONS..........6-11Personal Injury Protection (PIP)Uninsured/Underinsured Motorist CoverageComprehensive Coverage/Collision CoveragePOLICY OPTIONS CHART..............................12WHERE TO GET MORE INFORMATION AND.............................................................13 Car insurance is required in New Jersey. Whether you are buying a newinsurance policy or renewing your current policy, you must make many decisionsabout what coverage you need and how much you can pay. The followingUNDERSTAND YOUR NEEDS.Will your ownUNDERSTAND YOUR OPTIONS.UNDERSTAND CONSUMER PROTECTIONS. , you have rights. You have a right to fair and equal Agents, brokers and companies must inform you of your coveragerequest if you are already insured. You have the right to know howbe in the event of an accident. You always have the right to ask about You can shop for auto insurance at any time – not just when your You have the right to change your coverages and policy limits at WHERE DO I START? Insurance policies use terms that may be unfamiliar to the average driver. It isuseful to understand what these terms mean so you can make better, moreour auto insurance policy is divided into differentPERSONAL INJURY PROTECTION — This coverage pays others for damages from an auto accidentBODILY INJURY PROPERTY DAMAGEBODILY INJURY LIABILITY COVERAGEinjured in any one accident that you cause. It can sometimes be purchased as UNDERSTANDING YOUR POLICY Types of Coverages PROPERTY DAMAGE LIABILITY COVERAGEUNINSURED MOTORIST COVERAGEUNDERINSURED MOTORIST COVERAGEed, but who has less coverage than your underinsured motoristfire or a broken windshield. However, it will pay if you collide with an animal.UNDERSTANDING YOUR POLICY UNDERSTANDING YOUR POLICY Types of Coverages continuedJane purchases $100,000 in liabilitycoverage and $100,000 in underinsuredmotorist coverage. Sam purchases onlyhis car into Jane’s car, causing $25,000 indamages. Sam’s insurance company pays$15,000 of the damages, while Jane’sinsurance company pays the remaining$10,000 from her underinsured motorist EXAMPLE of There are two common types of auto insurance policies in New Jersey. TheyANDARD. Both offer options as well.STANDARD POLICYThe Standard Policy provides aBASIC POLICYtandard Policy, but provides limitedto meet the minimum insurance requirements of New Jersey law.See chart on page 5 for differences between the TANDARDUNDERSTANDING YOUR POLICY UNDERSTANDING YOUR POLICYcoverage available to drivers who arepolicy at a cost of $365 a year. Formore information, ask your agent orcompany representative or call the SPECIAL POLICYFOR MEDICAIDRECIPIENTS ONLY The chart below compares the differences between the STANDARD UNDERSTANDING YOUR POLICY UNDERSTANDING YOUR POLICY*permanent or significant brain injury, spinal cord injury or disfigurement or for COVERAGE STANDARD POLICY BASIC POLICY BODILYINJURYLIABILITY As low as:$15,000 per person,$30,000 per accidentAs high as:$250,000 per person,$500,000 per accident Coverage is included,but $10,000 for all persons,per accident, is available asan option PROPERTYDAMAGE LIABILITY As low as:$5,000 per accidentAs high as:$100,000 or more $5,000 per accident PERSONAL INJURYPROTECTION As low as:$15,000 per person oraccidentAs high as:$250,000 or moreUp to $250,000 for certaininjuries* regardless ofselected limit $15,000 per person,per accidentUp to $250,000 for certaininjuries* UNINSURED/UNDERINSUREDMOTORISTCOVERAGE Coverage is available up toamounts selected for liabilitycoverage None COLLISION Available as an option Available as an option (fromsome insurers) COMPREHENSIVE Available as an option Available as an option (fromsome insurers) UNDERSTANDING YOUR POLICY UNDERSTANDING YOUR POLICYDEDUCTIBLE OPTIONSif you are injured in an auto accident. Your insurerUNDERSTANDING YOUR POLICY UNDERSTANDING YOUR OPTIONSrepair shop estimates thecost of repairs at $2,000.pays the remainder. a highermay saveyou moneyon your HEALTH CARE PRIMARYEXTRA PIP PACKAGE COVERAGESTANDARD POLICYINCOME CONTINUATIONTemporary DisabilityESSENTIAL SERVICESDEATH BENEFITFUNERAL EXPENSE BENEFITUNDERSTANDING YOUR POLICY UNDERSTANDING YOUR OPTIONS Sam and Jane each have an accident that results in $10,000 ofthe $250 deductible plus $950 (20 percent of the $4,750 that is leftof the first $5,000) and the insurer pays the remaining $8,800). Janechose the $2,500 PIP deductible for a 25 percent reduction in thePIP premium. She pays the first $2,500 as the deductible. She alsopays $500 (20 percent of the $2,500 that is left of the first $5,000)and the insurer pays the remaining $7,000. UNINSURED MOTORIST COVERAGE — Pays you if you are in anaccident are paid by your own policy.Uninsured motorist coverage pay benefits to the uninsuredUNDERINSURED MOTORIST Pays you if youthan the limits of the other driver’syour underinsured motorist coverage and the other driver’s policy limit.UNDERSTANDING YOUR POLICY UNDERSTANDING YOUR OPTIONSUNDERSTANDING YOUR POLICY UNDERSTANDING YOUR OPTIONScoverage are not required by law, but may be requiredYou can also make a claim under your own collision coverage for damage to Motorist Coveragerequired. You can purchaseyou want more If you choose theSTANDARDPOLICY: than making a the auto accident. Your insurer then seeks reimbursement (subrogation) fromSTANDARDNAMED DRIVER EXCLUSIONPrevents certain drivers on yourUNDERSTANDING YOUR POLICY UNDERSTANDING YOUR OPTIONSInsurers are not required to provide theseBASIC POLICY If you choose theSTANDARD POLICY:Comprehensive and Collisionre always available asSTANDARD POLICYIf you choose theBASIC POLICY: 10UNDERSTANDING YOUR POLICY UNDERSTANDING YOUR OPTIONS STANDARD POLICYLIMITED RIGHT TO SUEUNLIMITED RIGHT TO SUELIMITED RIGHT TO SUElosses. Your medical expenses andIMPORTANT WARNING:Insurance companies or theirproducers or representatives shall not be heldliable for your choice of lawsuit option (LimitedRight to Sue or Unlimited Right to Sue) or foryour choices regarding amounts and types ofcoverage. You cannot sue an insurance companyor its producers or representatives if the LimitedRight to Sue option is imposed by law becauseno choice was made on the coverage selectionform. Insurers and their producers orrepresentatives can lose this limitation on liabilityfor failing to act in accordance with the law. SeeN.J.S.A. 17:28-1.9 for more information. UNLIMITED RIGHT TO SUE injury.LIMITED RIGHT TO SUE•loss of body part•significant disfigurement or significant scarring•a displaced fracture•loss of a fetus•permanent injury (Any injury shall be considered permanent when•deathUNDERSTANDING YOUR POLICY UNDERSTANDING YOUR OPTIONS UNDERSTANDING YOUR POLICY COVERAGES Options ThatCost Less What MostDrivers Choose Options ThatCost More LIABILITY - Bodily Injuryand Property Damage$35,000;$50,000;$100,000 $300,000$500,000 PERSONAL INJURYPROTECTION (PIP) Medical Expense Limit$15,000;$50,000;$75,000;$150,000 $250,000Some insurersmay offer morethan $250,000 Medical Deductible$500; $1,000;$2,000; $2,500 --- Extra PIP Options:Income Continuation,Essential Services,Death Benefit andFuneral ExpenseBenefitYou can declinethe Extra PIPPackage Most consumerschoose theExtra PIP PackagePackages maybe available inhigher amounts Health Insurer forPIP OptionChoose your ownhealth insurer Most consumers donot choose theirown health insurer--- UNINSURED/UNDERINSUREDMOTORIST COVERAGE$35,000;$50,000;$100,000 $300,000$500,000 COLLISIONCOVERAGEDEDUCTIBLE$750; $1,000;$1,500; $2,000 $50; $100;$150; $200; $250 COMPREHENSIVECOVERAGEDEDUCTIBLE$750; $1,000;$1,500; $2,000 $50; $100;$150; $200; $250 LAWSUIT OPTION--- Limitation onLawsuit OptionNo Limitation onLawsuit Option UNDERSTANDING YOUR POLICY POLICY OPTIONS CHART Contact the Department of Banking and Insuranceon the web:www.dobi.nj.govby phone: (609) 292-7272or the Consumer Hotline at by mail at:NJ DOBI P.O. Box 471 Trenton, NJ 08625-0471or in person at:NJ DOBI20 West State StreetTrenton, NJ 08608UNDERSTANDING YOUR POLICY WHERE TO GET MOREINFORMATION AND HELP This Buyer s Guide is intended to provide general information to help you make coverage choices. It is not a substitute for the policy language, which governs. Additional information regarding coverages or premiums is available from the insurer or producer (Insurers that write at least two percent of the New Jersey private passenger automobile market shall provide a toll-free number for insureds.) AUTO INSURANCE NEW JERSEY BUYER’S GUIDE Governor ommissioner L Governor Insurance policies use terms that may be unfamiliar to the average driver. It isuseful to understand what these terms mean so you can make better, moreYour auto insurance policy is divided into different INJURY PROTECTIONthe need to hire someone to take care of your home or family.BODILY INJURY PROPERTY DAMAGEBODILY INJURY LIABILITY COVERAGEsuffering and economic damages, such as lost wages.ed in any one accident that you cause. It can sometimes be purchased aswhich offers a maximum limit of protection per UNDERSTANDING YOUR POLICYTypes of Coverages Car insurance is required in New Jersey. Whether you are buying a newinsurance policy or renewing your current policy, you must make many decisionsabout what coverage you need and how much you can pay. The followingUNDERSTAND YOUR NEEDS.Do you have assets to protect (including income from a job)? WUNDERSTAND YOUR OPTIONS.UNDERSTAND CONSUMER PROTECTIONS. auto insurance consumer, you have rights. You have a right to fair and equal Agents, brokers and companies must inform you of your coverageoptions when applying for a new policy, or at any time upon yourYou have the right to know howbe in the event of an accident. You always have the right to ask about You can shop for auto insurance at any time – not just when your You have the right to change your coverages and policy limits atoptions that save you money, you have a right to a refund of your WHERE DO I START? Contact the Department of Banking and Insuranceon the web:www.dobi.nj.govby phone: (609) 292-7272or the Consumer Hotline at by mail at:NJ DOBI P.O. Box 471 Tor in person at:NJ DOBI20 West State StreetTrenton, NJ 08608UNDERSTANDING YOUR POLICY WHERE TO GET MOREINFORMATION AND HELP This Buyer s Guide is intended to provide general information to help you make coverage choices. It is not a substitute for the policy language, which governs. Additional information regarding coverages or premiums is available from the insurer or producer (Insurers that write at least two percent of the New Jersey private passenger automobile market shall provide a toll-free number for insureds.) UNDERSTANDING YOUR POLICY COVERAGES Options ThatCost Less What MostDrivers Choose Options ThatCost More LIABILITY - Bodily Injuryand Property Damage$35,000;$50,000;$100,000 $300,000$500,000 PERSONAL INJURYPROTECTION (PIP) Medical Expense Limit$15,000;$50,000;$75,000;$150,000 $250,000Some insurersmay offer morethan $250,000 Medical Deductible$500; $1,000;$2,000; $2,500 --- Extra PIP Options:Income Continuation,Essential Services,Death Benefit andFuneral ExpenseBenefitYou can declinethe Extra PIPPackage Most consumerschoose theExtra PIP PackagePackages maybe available inhigher amounts Health Insurer forPIP OptionChoose your ownhealth insurer Most consumers donot choose theirown health insurer--- UNINSURED/UNDERINSUREDMOTORIST COVERAGE$35,000;$50,000;$100,000 $300,000$500,000 COLLISIONCOVERAGEDEDUCTIBLE$750; $1,000;$1,500; $2,000 $50; $100;$150; $200; $250 COMPREHENSIVECOVERAGEDEDUCTIBLE$750; $1,000;$1,500; $2,000 $50; $100;$150; $200; $250 LAWSUIT OPTION--- Limitation onLawsuit OptionNo Limitation onLawsuit Option UNDERSTANDING YOUR POLICY POLICY OPTIONS CHART WARNING:Insurance companies or theirproducers or representatives shall not be heldliable for your choice of lawsuit option (LimitedRight to Sue or Unlimited Right to Sue) or foryour choices regarding amounts and types ofcoverage. You cannot sue an insurance companyor its producers or representatives if the LimitedRight to Sue option is imposed by law becauseno choice was made on the coverage selectionform. Insurers and their producers orrepresentatives can lose this limitation on liabilityfor failing to act in accordance with the law. SeeN.J.S.A. 17:28-1.9 for more information. UNLIMITED RIGHT TO SUEpain and suffering for LIMITED RIGHT TO SUE•loss of body part•significant disfigurement or significant scarring•a displaced fracture•loss of a fetus•permanent injury (Any injury shall be considered permanent when•deathUNDERSTANDING YOUR POLICY UNDERSTANDING YOUR OPTIONS 10UNDERSTANDING YOUR POLICY UNDERSTANDING YOUR OPTIONS STANDARD POLICYLIMITED RIGHT TO SUEinsurance policy.LIMITED RIGHT TO SUElosses. Your medical expenses andIMPORTANT than making a the auto accident. Your insurer then seeks reimbursement (subrogation) fromSTANDARDNAMED DRIVER EXCLUSION Prevents certain drivers on yourUNDERSTANDING YOUR POLICY UNDERSTANDING YOUR OPTIONSers are not required to provide theseBASIC POLICY If you choose theSTANDARD POLICY:Comprehensive and Collisionre always available asSTANDARD POLICYIf you choose theBASIC POLICY: UNINSURED MOTORIST COVERAGE — Pays you if you are in aninsurance required by law. Claims thatUninsured motorist coverage pay benefits to the uninsuredUNDERINSURED MOTORIST— Pays you if you’syour underinsured motorist coverage and the other driver’s policy limit.UNDERSTANDING YOUR POLICY UNDERSTANDING YOUR OPTIONSUNDERSTANDING YOUR POLICY UNDERSTANDING YOUR OPTIONSe not required by law, but may be requiredYou can also make a claim under your own collision coverage for damage to Motorist Coveragerequired. You can purchaseyou want more If you choose theSTANDARDPOLICY: HEALTH CARE PRIMARYfor the Health Care Primary option.STANDARD POLICYINCOME CONTINUATIONrelated injuries, this coverage pays lost wages, less TESSENTIAL SERVICESshoveling snow or doing laundry, if you are injured in an auto accident.TH BENEFITFUNERAL EXPENSE BENEFITUNDERSTANDING YOUR POLICY UNDERSTANDING YOUR OPTIONS Sam and Jane each have an accident that results in $10,000 ofthe $250 deductible plus $950 (20 percent of the $4,750 that is leftof the first $5,000) and the insurer pays the remaining $8,800). Janechose the $2,500 PIP deductible for a 25 percent reduction in thePIP premium. She pays the first $2,500 as the deductible. She alsopays $500 (20 percent of the $2,500 that is left of the first $5,000)and the insurer pays the remaining $7,000. the policy.beforeUNDERSTANDING YOUR POLICY UNDERSTANDING YOUR POLICYyou buy, deductibles also provide savingsYour insurerUNDERSTANDING YOUR POLICY UNDERSTANDING YOUR OPTIONScost of repairs at $2,000.pays the remainder. a highermay saveyou moneyon your There are two common types of auto insurance policies in New Jersey. TheySTANDARDSTANDARD POLICY The Standard Policy provides aPOLICYsignificantly less than a Standard Policyto meet the minimum insurance requirements of New Jersey law.See chart on page 5 for differences between the STUNDERSTANDING YOUR POLICY UNDERSTANDING YOUR POLICYcoverage available to drivers who arepolicy at a cost of $365 a year. Formore information, ask your agent orcompany representative or call the SPECIAL POLICYFOR MEDICAIDRECIPIENTS ONLY AUTO INSURANCE NEW JERSEY BUYER’S GUIDE Governor ommissioner L Governor AUTO INSURANCE NEW JERSEY BUYER’S GUIDE Governor ommissioner L Governor

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Auto insurance - Description

AUTO INSURANCE NEW JERSEY Chris Christie Governor Richard J Badolato Acting Commissioner Kim Guadagno Lt Governor WHATx0027S INSIDEWHERE DO I START1UNDERSTAN ID: 332697 Download Pdf

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