Even if you are only involved in a small accident, you face dire consequences if you do not have the proper types of New Jersey car insurance. In New Jersey, as in most other states it is the law that all drivers must have liability coverage. If you do not have the required policy and have an accident or are caught at a traffic stop, you will have your license and registration suspended. And guess what? It costs $500.00 to have them restored. Not to mention if there are medical expenses too. So don’t mess around.
There are seven different types of New Jersey coverage: comprehensive, uninsured motorist protection, liability, collision, gap, medical/personal-injury protection, and no-fault.
Here’s an explanation of all seven to help you decide which ones will benefit you and your situation and which ones you don’t need.
Types of New Jersey Car Insurance
In the case where state law dictates that you must have coverage for your car, as it does for New Jersey car insurance, what they want you to have is called liability coverage. Should you have an accident while driving and it is determined that you were at fault, then liability will take care of the expense involved repairing or replacing any property which was damaged or destroyed in the accident.
While it isn’t the law that you need to have collision coverage doing so is a logical step to take. You see, if you are involved in an accident and have only liability, regardless of whether or not you were at fault, you could end up in the position of being left with a damaged car and no money to have it repaired. Under a collision policy, your agency, foots the bill for your car to be repaired.
While the liability and collision types of New Jersey car insurance policies specifically cover car accidents, comprehensive coverage takes care of the unexpected in many ways. Weather damage, hitting an animal, having your car stolen, all of these instances are covered under comprehensive, along with a multitude of other situations too.
- Uninsured Motorist Protection
A policy which covers damage caused by an uninsured motorist.
- Medical/Personal-Injury Protection
This covers the expenses, for the treatment of injuries after a car accident.
- No-Fault Insurance
To date this coverage is only available in a dozen states. The idea is that regardless of who is actually responsible for an accident, injuries and property damage are paid for.
- Gap Insurance
New Jersey car insurance created to help drivers who have not yet finished making their car payments and have the car demolished in an accident. Comes in handy if you owe a lot of money on your car than you could manage to pay on short notice.