I get confuse about my NJ vehicle insurance so I will need some of your help. I already know what liability coverage is, but can you differentiate the three: collision, comprehensive and medical coverage?

Sandeep

Toms River, NJ

A lot of drivers really get confused about their NJ vehicle insurance and seek the help of their friends and family or even a vehicle insurance agent or broker. Since you already know what liability coverage is, I’ll help you understand what collision, comprehensive and medical coverage in your NJ vehicle insurance are.

First up, collision coverage would pay for the damages on your car in the event that you have a collision with another car or object. If you have collision coverage as part of your NJ vehicle insurance, you are required to pay the deductible first before your insurer picks up the tab. Similarly, comprehensive coverage would pay for the damages on your car but if it is due to natural causes like fire, flood or storm. Theft and vandalism are also coverage if you have comprehensive coverage on your NJ vehicle insurance.

In the state of New Jersey, medical payments coverage or Personal Injury Protection (PIP) is required for a driver to have as part of his/her NJ vehicle insurance. These things work in a different way but they are the same in giving medical care for you after an accident.

Am I still required to get complete auto insurance coverage for my older vehicle here in New Jersey?

Camille

Camden, NJ

Although you are required by the financial responsibility laws of New Jersey to carry auto insurance, it is not mandated to carry a complete auto insurance coverage package. You only have to get the minimum levels of liability insurance coverage in your state. For New jersey, that would be 15/30/5: $15,000 Total Liability insurance coverage for each person you injure in a car accident, $30,000 minimum total coverage for all persons injured per accident and an additional $5,000 which would pay for repairs or replacement of damaged/ destroyed properties per accident. Whatever further auto insurance coverage policies or amounts you buy would be your choice.

Many people actually find it advantageous to lower, even drop Comprehensive and Collision Insurance Coverage all together on an older, pre-damaged or pre-owned vehicle. The cost of filing an insurance claim for damages to older, less expensive vehicles would not be as cost-effective as it would if the claim is filed for a brand-new top of the line vehicle. You might end up paying a higher deductible and it may prove cheaper to get the repairs done yourself. If your car is on equity loan, however, your lenders may require you to maintain the collision and comprehensive insurance coverage, since these policies under your auto insurance protects, and restores, the financial or monetary worth of your vehicle in the event of loss.

I am getting my own auto insurance coverage soon here in New Jersey. I was told by my father that I need to get uninsured/underinsured motorist coverage for it is required. Since I didn’t have the chance to ask him what it is, could you give me a bit of an idea as to what it does?

Lazaro

Wayne, NJ

Certainly, Lazaro, I can help you understand what protection uninsured/underinsured motorist coverage can give you. Uninsured motorist will give you coverage if you get hit by a driver who is at-fault in the accident and doesn’t have auto insurance at all. Uninsured motorist property damage is especially useful if you don’t have collision coverage as part of your auto insurance policy in New Jersey. This is a great way to protect your vehicle from uninsured motorists without a substantial increase in your rates. Uninsured motorist bodily injury could come in handy in another way. Even as a pedestrian and you get hit by a vehicle, this type of coverage will cover your medical bills as well as lost wages. This is very important even if you have medical payments coverage as part of your policy because that won’t cover for any lost wages.

On the other hand, underinsured motorist coverage will give you protection in case you get in an accident and the other driver who is at-fault doesn’t have enough coverage to pay for the damages to you and your vehicle. Underinsured motorist coverage would only pay up to the maximum value of your auto insurance policy after deducting the cost paid by the other motorist’s insurance.

I’m a new resident here in New Jersey and I don’t know if my requirements meet the one on this state since I came from another state. Is there anything that I have to know about car insurances here in the state of New Jersey?

Ally

Elizabeth, NJ

Almost every citizen who just moved in New Jersey is actually worried whether their car insurance policy meets the requirement of the state. It is best for those citizens who are in question to check with the Department of Banking and Insurance of the state for them to know the state policies.

The thing that New Jersey is known to is that it is also a No Fault State which makes New Jersey drivers comprehensively insured. But even if it is a No Fault Policy, there are still listed exemptions just like one should take a Liability Policy or the list the Minimum Liability Policy to cover some of the expenses one cannot afford even with their car insurance. But with our present economy, medical bills skyrocketed too that there is a big possibility that the other party will not be able to pay for all the damages so it is much required to have at least more than the minimum liability. And aside from this advised policy, one should get a Personal Injury Protection to pay for medical expense and other things that may occur and that it can be also extended to the other party if they don’t have enough coverage. Laws are good for one doesn’t need to suffer in an accident but you also have to protect yourself.

Can you tell me more about how one can be a victim of car insurance fraud? I’ve seen some distressing news about it lately here in New Jersey and I don’t want to be a statistic.

Irene

Jersey City, NJ

Over the years car insurance fraud has become a very serious matter for motorists and car owner’s everywhere. Everyone who owns a vehicle and pays for auto insurance should be aware of how these criminals operate and how they victimize people, cheating them out of their money, causing emotional and financial distress (causing the victim’s auto insurance premiums to increase significantly) and even putting innocent lives at risk.

Since we believe that everyone should be as diligent as you are in raising awareness about car insurance fraud, here are some of the more popular methods that car insurance scammers utilize, everyone should be prepared:

“Rear-Enders” Staged Accidents
A vehicle driven by one of the accomplice vehicle will suddenly speed right in front of you and suddenly slam it’s brakes, not giving you enough time to respond and therefore causing you to crash towards it. And since Rear-end collisions like this will most likely be treated by a judge as your fault, you will have to pay for pre-inflicted damages and maybe even for fake injuries.

The “Good Samaritan”
There will be a person who seems to be trying to help you by waving you seemingly out of traffic jams or dangers but will actually cause you to crash into another (accomplice) vehicle and will deny doing so in court or an investigation, leaving you paying up for damages or injuries that may very well have also been staged.