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What Is The Difference Between Auto Insurance Policies?

Before buying or renewing your auto insurance policy, it’s important to consider a variety of factors, including whether or not your health insurance plan covers injuries sustained in auto accidents, the kind of coverage you may need, and how much you can afford to pay. The majority of drivers in New Jersey choose the Standard Auto Insurance Policy which provides a variety of coverage options, as well as the ability to include additional types of protection. The Basic Policy is also offered to drivers in New Jersey. While it only provides limited benefits, it generally costs far less than the Standard Policy while still meeting New Jersey’s minimum insurance requirements.

Levinson Axelrod does not sell insurance nor are we involved in the purchase or sale of insurance in any way. However, we are willing to review your policy choices to assist you in making decisions that best protect you and your family as a public service without charge.

Some descriptions of coverages involved include:

Bodily Injury Liability: Covers lawsuits and claims from people injured in auto accidents you are responsible for causing. (That would be if someone makes a claim against you or your resident relatives).

  • Standard Policy: Coverage starts as low as $15,000 per person and $30,000 per accident, and goes as high as $250,000 per person and $500,000 per accident.
  • Basic Policy: There is no coverage included in the basic package, but $10,000 per person per accident is available as an option.

Property Damage Liability: Covers lawsuits and claims from people whose property was damaged in accidents you are responsible for causing.

  • Standard Policy: Coverage starts as low as $5,000 per accident, and goes as high as $100,000 or more.
  • Basic Policy: Covers $5,000 per accident.

Personal Injury Protection: Covers injuries you or people covered by your insurance policy sustain during an auto accident. New Jersey has “no-fault” medical coverage for automobile accidents, which means that even if the accident is someone else’s fault, your medical coverage under your policy is primary.

  • Standard Policy: Coverage starts as low as $15,000 per person or accident, and goes as high as $250,000 or more.
  • Basic Policy: Coverage starts as low as $15,000 per person per accident, and goes up to $250,000 for certain injuries.

Underinsured / Uninsured Motorist Coverage: Covers injuries or property damage sustained in an accident with an uninsured or underinsured motorist or a driver whose insurance offers less coverage than your own policy. This coverage is important since it provides coverage to you and possibly resident family members when they are involved in accident with someone with no insurance or less insurance than you have.

  • Standard Policy: Coverage goes up to the amounts selected under liability coverage.
  • Basic Policy: None.

Collision: Covers damage to your vehicle caused by a collision with another object or vehicle.

  • Standard Policy: Coverage can be purchased as an extra option.
  • Basic Policy: Coverage is available as an extra option from certain insurers.

Comprehensive: Covers damage to your vehicle resulting from vandalism, fire, collision with an animal, flooding, theft, etc.

  • Standard Policy: Coverage can be purchased as an extra option.
  • Basic Policy: Coverage is available as an extra option from certain insurers.

Limitation on Lawsuit Threshold or No Threshold - The Automobile Insurance Cost Reduction Act severely limits the ability of some injured motorists to seek the compensation they deserve, and unless you selected the “No Limitation on Lawsuit” option when choosing your insurance plan, you may not be able to recover for pain, suffering or disability unless your injuries meet very stringent, and sometimes unfair, requirements.

We strongly urge all members of the public to opt for full medical coverage and opt for No Threshold when selecting insurance coverage. However, we can discuss options with you to help you make an intelligent informed decision when purchasing insurance. The insurance companies, their websites and their brokers are largely immune when it comes to giving purchasing advice, so it is important that you make informed decisions when selecting your coverage.

At Levinson Axelrod, P.A., we believe that there shouldn’t be a limit on how victims seek compensation for their injuries caused by the negligence of others. Contact us today to request a free case evaluation, or call us at (732) 440-3089 to set up a meeting with one of our motor vehicle accident attorneys.

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