Automobile

New Jersey drivers are required by law to purchase a certain minimum amount of auto insurance coverage for each automobile they own. Since the minimum coverage is rarely adequate for the needs of today’s drivers, particularly when it comes to liability, and most people who have loans or leases on their vehicles are required to purchase more comprehensive coverage, it’s a wise plan to consult with Phoenix Insurance Group to make sure you have the coverage you need to protect your vehicle and your assets in the event of an accident or theft of your vehicle.

NJ Requirements for Car Insurance

In the state of New Jersey, you have two main options available to you with respect to automobile insurance. Each one is somewhat different and meets the bare bones requirements of the law.

Keep in mind, though, that these coverages are designed to insure other people against accidents in which you are at fault and offer little protection for you if another vehicle is at fault.

Basic Policy

This policy is more affordable, but provides very limited coverage to car owners. Coverage includes:

  • Property Damage Liability (up to $5,000 per person)
  • Personal Injury Protection (up to $15,000 per person, per accident)
  • Personal Injury Protection for Severe or Permanent Injuries (up to $250,000)

There is no bodily injury liability coverage on the basic policy though you may purchase up to $10,000 of this coverage outside of the basic policy.

Standard Policy

This policy comes at a higher price but offers somewhat more extensive liability coverage including:

  • Bodily Injury Liability ($15,000 per person, per accident for anyone not in your car if you caused the crash).
  • Bodily Injury Liability for Multiple Injured People (up to $30,000 per accident).
  • Personal Damage Liability (up to $5,000).
  • Personal Injury Protection (up to $15,000 per person, per accident).
  • Personal Injury Protection for Severe or Permanent Injuries (up to $250,000).

Why Isn’t Minimum Coverage Enough?

Many drivers wonder why this isn’t enough insurance coverage. The fact remains that it’s simply not enough coverage. If the car of the other driver is totaled in the accident, $5,000 is substantially inadequate to cover the costs of replacing the vehicle.

More importantly, the state minimum coverage for New Jersey offers no protection to you when uninsured or underinsured (those who only have state minimum coverage, for example) cause accidents that damage your vehicle or cause injuries to you or your passengers.

We understand that times are tough for people throughout New Jersey and offer many options that are remarkably affordable. We believe that you deserve good auto insurance coverage and work with you to build a policy that meets your unique needs as a driver while keeping your budgetary needs in mind as well.

These are some of the coverage options you should consider while exploring your auto insurance options:

  • Bodily Injury Liability Coverage
  • Property Damage Liability Coverage
  • Personal Injury Protection (PIP)
  • Medical Payments (this coverage kicks in once the standard PIP coverage is exhausted)
  • Uninsured/Underinsured Motorist
  • Comprehensive and Collision Coverage
  • Personal Property Coverage
  • Loan and Lease Coverage

At Phoenix Insurance Group, we work with all major insurance carriers to ensure that you get the full scope of coverage you need at an affordable rate. Contact us today at: 908-879-6500 to assess your auto insurance needs and options, as well as to learn about the many great ways we can help you save big on your car insurance premiums.

Ask us about our antique car insurance, motorcycle insurance, and recreational vehicles insurnace, should you own any of those assets.