No one likes talking about car insurance so I will keep this brief. Here is what you need to know to not get screwed over by your car insurance company in New Jersey.
FULL COVERAGE MEANS BASICALLY BUPKES
Full coverage is something that you should purchase. It generally refers to collision coverage, which means that your car insurance will fix property damage from an accident regardless of fault. This lets you get back on the road quickly and inexpensively. Its important to have this. BUT UNDERSTAND THAT FULL COVERAGE MEANS NOTHING ELSE. It does not mean you are covered for medical benefits, liability coverage, uninsured motorist coverage, or anything else!
DO NOT ELECT TO REDUCE YOUR “PERSONAL INJURY PROTECTION” No Fault Benefits to Less than the standard $250,000
It does not matter who is at fault for a car accident, your car insurance pays for the medical care related to any accident. Reducing your coverage for this, known as “PIP” or “No Fault” coverage, does not significantly lower your premiums. But it will screw you over if you are in an accident and require even a modest amount of follow up care. Even if you have health insurance, not all doctors accept all health insurance and your health insurance may have a right to recover any amounts paid
GET AS MUCH UNINSURED/UNDERINSURED (UM/UIM) COVERAGE AS YOU CAN AFFORD
No one likes to pay their car insurance, but the whole point of having it is to protect you in case that something awful happens. If the person who causes that something awful is uninsured or has minimal car insurance, you are straight up out of luck.
Uninsured/underinsured motorist coverage provides a safety net. At a minimum, you should make sure that you have $100,000 in this type of coverage to protect yourself and your family. This way, even if the driver who causes an accident has no insurance, no liability coverage, or minimal liability coverage, your uninsured/underinsured coverage will act as their coverage so that there is a source for you to recover lost wages, other economic losses, and pain and suffering compensation from.
