TAP TO CALLIf you have received your car insurance renewal form – and a bill that is higher than last year’s – you may be tempted to save money by shopping for a new insurance company or reducing your benefits. The New York and New Jersey personal injury attorneys of Davis, Saperstein & Salomon, P.C., urge you to become informed about your options so you do not live to regret your decision.
Do not be fooled by funny or clever TV commercials. Insurance is a sophisticated and complex product that is designed to protect you, your family members and your assets in the event of an auto accident. The automobile insurance you buy in New Jersey affects all of your household family members.
Generally, good quality insurance costs more that bare-bones coverage. For that reason, we strongly recommend that you buy your insurance through an independent insurance agent. An independent agent can shop your coverage through multiple insurance carriers and help you find the best coverage for the lowest premium.
You also should make sure all cars, household members and drivers are listed in the policy. This includes children who are just getting their permits and any family member to whom you are lending your car for an extended period.
In New Jersey we have no-fault insurance. This means that your own car insurance may pay for your medical bills and lost wages regardless of who caused the accident. The medical benefits and lost wage benefits are called personal injury protection, or PIP benefits.
You need to make decisions in four key areas:
1. Liability coverage
Liability insurance represents your coverage if you or someone driving your car causes an accident. Your coverage should equal the value of all of your property and assets as well as your salary. Too often people buy only $15,000 in bodily injury coverage and $5,000 in property damage. Why is that bad? If you rear-end a new Mercedes Benz, totaling the car and seriously injuring the driver, it will be your responsibility to pay for the losses above your coverage. You could be responsible for the extra $75,000 in property damage to the Benz and perhaps $100,000 or more for the injuries to the driver.
Your uninsured and underinsured coverage should match your liability coverage. If you are hurt by someone who has only the minimum liability coverage, your own coverage will have to pay for the pain and suffering related to your injuries.
We suggest that you buy $300,000 single limit coverage as a minimum. Also, never make your health insurance company from work primary over your car insurance policy.
2. Personal Injury Protection, or PIP coverage
Medical care is so expensive it does not take much to rack up $100,000 or more in medical bills. Until a few years ago, all policies had $250,000 in medical coverage. But the law now allows insurance companies to sell lower PIP medical coverage … and they love doing it because they can save themselves a lot of money if you get hurt. When you ask an insurance company for a quote on coverage, be sure it is not based on lower PIP medical coverage. Always make PIP primary over your major medical coverage.
3. Uninsured and Underinsured Motorist Coverage
If you are hurt by someone who does not have insurance, your own Uninsured Motorist Coverage will pay for your injuries. But your Uninsured or Underinsured Motorist Coverage cannot exceed your liability coverage. We recommend that you purchase a minimum of $300,000 in liability coverage so that you can insure yourself for that amount as well.
4. Your right to sue
You can purchase no-threshold or limited–threshold coverage in New Jersey, which will affect your right to sue for non-permanent, soft-tissue injures. If you purchase limited threshold, you cannot sue for non permanent injuries, pain and suffering and future losses. You can sue for an injury to a body part causing it to no longer function normally again without further medical treatment. You also can sue for death, dismemberment, significant scaring, a fracture that is displaced or loss of a fetus. (A major exception to the threshold involves accidents caused by a truck or commercial vehicle; no threshold applies in such accidents.)
We recommend that you protect your right to sue by selecting no-threshold coverage, though it will increase the cost of your insurance.
For further information about New Jersey tort law, please contact us for a free copy of “The Consumer’s Guide to New Jersey Personal Injury Claims” by calling our office at 1-800-529-2000.
- About the Author
- Latest Posts
Since 1981, the compassionate personal injury lawyers at Davis, Saperstein & Salomon have been delivering results for our deserving clients. We are solely committed to helping injured individuals, never representing corporations. No matter how large or small your personal injury case is, you can trust that it is important to us.
