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Similar to other states, New Jersey requires that you have minimum
protection and coverage for automobile accidents. Lack of insurance can
result in heavy fines, required community service, and suspension of
your Drivers License. In addition, it is required that you have proof
of insurance in your vehicle at all times, and that it is presented at
the time of traffic stops, check-stops, and accidents. The following
types of policies are required to legally operate a vehicle in New
Jersey:
$5,000 Liability Insurance
Liability Insurance is required, and is used when you are in an
at-fault accident. Liability Insurance covers the costs which the
innocent driver has incurred. Liability insurance does not cover
medical expenses.
$15,000 Personal Injury Protection [PIP]
Personal Injury Protection is a type of policy which covers the driver,
passengers, and other victims of an automobile accident. This policy
pays for the medical, hospital, and funeral expenses, within a certain
limit. This type of policy is on a first-party basis, regardless of
fault. This type of coverage is especially beneficial to those who do
not have health insurance.
$15,000 Uninsured or Underinsured Coverage
Unlike most states, this type of coverage is required in the state of
New Jersey. Uninsured or Underinsured coverage will protect your assets
if you get in an accident with someone who does not have adequate
coverage, or coverage at all. This type of coverage is particularly
useful in ensuring that you are properly taken care of, regardless of
the financial issues which the guilty party may or may not be facing.
Choice No Fault System
The system on which New Jersey operates allows you to pursue your
rights within a Tort System. A Tort System requires that one party is
considered guilty, and the Choice No Fault System of New Jersey allows
you to sue for any automobile related injuries.
Meeting with a New Jersey licensed Insurance Agent will be the most
efficient way of ensuring that your Automobile Insurance Policy is
within requirements and guidelines. In addition, your insurance agent
will be able to cater to your specific needs and budget concerns.
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