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.

It’s probably time for me to replace my very old car with a new one but I’m still concerned with my car insurance. Does the type of vehicle that I will purchase matter in determining my car insurance rates here in New Jersey?

Gaël

Toms River, NJ

The type of car that you drive is one of the factors that determine the cost of your car insurance in New Jersey. Part of the formula of your insurance cost is the make and model of your car because car insurance companies relate it to the expenses they would have to shell out in an accident or if your car is stolen. When a new vehicle model is introduced, car insurance organizations make a comparison on the probable costs for that vehicle to insure against other car makes and models. While experience builds up for that vehicle, its rating could go up or down and it can influence your premiums for collision and comprehensive coverage.

Based on the vehicle ratings, sports cars and sport utility vehicles (SUV) are just two types of vehicles that perhaps cost more to insure in terms of auto liability coverage. Some car insurance companies evaluate an SUV in another way which is based on the vehicle’s account of causing further damage to other cars during an accident. So if you are purchasing a new car, you must research on its crash test rating and make sure that the car has low insurance losses in real crashes to help you save on your car insurance rates. Aside from the type of vehicle that you drive, other factors include your driving history, credit score, your location, insurance claims history, age, sex, the type of coverage and how much coverage you buy.

Up until now I have never really paid attention about car insurance, not until a friend got involved in a car accident here in Camden, New Jersey and found out that she doesn’t have full coverage, how do I know that I have a good car insurance policy?

Valerie

Camden, NJ

For some people, it would take the harsh reality of being involved (worse, at-fault) in a car accident, and realizing they have not been carrying adequate auto insurance to cover for all the damages caused, before seriously taking and paying attention on their insurance policies. You don’t have to be like that though. Knowing very well the scopes and limitations of your insurance policy you have there in Camden, New Jersey will be to your advantage.

Minimum Liability Coverage
Make sure you have at least the minimum state required liability coverage amount. Liability insurance, if you didn’t know, pays for any financial obligations you may be required to pay injured people or to repair/ replace damaged property in the event you caused a car accident.

For New Jersey, the minimum coverage amounts would be 15/30/5 which means a total of $15,000 payable to the injured person per accident, total of $30,000 payable to all parties injured in the car crash and $5,000 to pay for property damages. We would encourage you to get higher since you can be sued for bigger amounts in a car crash.

You should also know if you can afford to pay the agreed upon deductible if you do file a claim. You would want to grab your copy of the insurance policy and make sure you understand the fine print. Doing so will already tell you if your insurance policy is good enough.

What good will it give me if I get full coverage for my auto insurance here in New Jersey instead of just getting the minimum liability coverage?

Paris

East Orange, NJ

Auto insurance coverage is one thing that is decided by every state. There would be different regulations and required guidelines by the state that controls these rules and also the ones that give the coverage. One of the components that are determined by state rules would be the minimum amount coverage that the law mandates and this is the minimum liability coverage.

The other basic type of auto insurance policy is a more comprehensive full coverage. Full coverage doesn’t mean that every incident would be afforded protection by the insurance policy. So in this sense, full doesn’t mean complete coverage. With this type of coverage, you would get further areas of coverage aside from the basic liability. These coverage types would be the collision and comprehensive coverage. Comprehensive coverage would protect you from other kinds of damage such as vandalism, theft, natural disasters, etc. Collision coverage would give you extra protection in auto collisions. In case you’d like to have full coverage for your auto insurance in East Orange, New Jersey, you’re not obliged to get all of the three elements. Some insurance policies would allow you to have comprehensive without the collision coverage.