All motor vehicles registered in New Jersey must be insured. If you are driving your uninsured vehicle and get into an accident, you will not be permitted to make any claims for medical benefits, uninsured motorist benefits, property damages, and wage losses. Additionally, you will not be protected against injury or property damage claims if you are at fault.
Basic Policy vs. Special Policy
Two kinds of insurance are available: the basic policy and the special policy. The special policy, also known as the $1.00/day policy is available only to Medicaid recipients. It provides only emergency room costs and death benefits. It provides no coverage for you, your resident relatives, or passengers for the following: medical costs, property damage, liability coverage, attorneys fees or uninsured motorist benefits. It is a bad deal for anyone seeking protection for injuries sustained or caused by a motor vehicle accident.
A typical basic policy provides various levels of coverage depending upon your needs, your risk tolerance, and your financial situation. The most common level of such a policy provides $15,000.00 in medical coverage for you, your resident relatives, and passengers who are injured in an accident but do not have their own automobile insurance. Included in the basic policy is coverage for the following: lost wages, property damage to your vehicle, liability coverage (if you are at fault in an accident and cause injury), property damage to someone else, and uninsured/underinsured benefits.
Uninsured Benefits
Uninsured benefits provide coverage for you and your resident relatives who do not have their own automobile insurance and are injured in a motor vehicle accident with a hit-and-run vehicle or owner of an uninsured vehicle. Underinsured coverage protects you and your resident relatives who are seriously injured in an accident where the value of your injuries are greater than the available insurance coverage of the other driver’s insurance. This coverage is the least expensive coverage you can purchase and should not be overlooked.
Rental Reimbursement Coverage
Rental reimbursement coverage can also be purchased for an additional premium. All insurance companies offer higher levels of coverage for an additional premium and these coverages must be selected by the owner at the time of purchase. The costs for these coverages vary from each insurance company authorized to write insurance in New Jersey, so it pays to shop around and compare.
If you are unsure as to the amount and kind of coverage you need, feel free to contact Keith Zaid Law for a free analysis of your automobile insurance needs.
The foregoing is a general overview of your automobile insurance needs and should not be considered a substitute for a thorough review and analysis of your needs with the help of an experienced lawyer familiar with insurance and personal injury law in New Jersey.
