NJ Insurance - New Jersey Basic Auto Insurance Policy.

Car insurance in New Jersey is among the highest in the USA. Get minimum coverage and drive legal to avoid major problems and insurance issues.

The Basic Auto Insurance New Jersey Policy should be considered by those with few family responsibilities and few real assets. It can provide a transition for younger drivers who are just beginning work, providing a basic, minimum protection when they may be least able to afford more comprehensive coverage. If you do not have any liability coverage, you are responsible for paying for the pain, suffering and other personal hardships and some economic damages, such as lost wages, that you cause. The insurer will not provide or pay for a lawyer to represent you if you are sued. Your assets will be at risk, including the risk of having money deducted from your wages if a judgment is entered against you. And, if you lack coverage and someone hits you, you cannot sue.

For drivers who may not currently have insurance, due to an inability to afford standard NJ car insurance coverage, the reforms authorized the creation of a new basic auto insurance policy. This is a low-cost policy with (absolute) minimum coverage that will meet mandatory insurance requirements. It has a $15,000 personal injury protection (PIP) medical expense limit, although treatment of certain extremely serious injuries and costs for hospital care of other significant injuries is covered up to $250,000. Other PIP benefits, such as income continuation and essential services, are not offered under the basic policy. Bodily injury liability coverage is also not included, although $10,000 in coverage is available as an option at additional cost.

The policy provides a maximum property damage coverage of $5,000 and the "Limitation on Lawsuit Threshold" is mandatory for the basic policy.

Very important details.

The State of New jersey Basic Policy was established pursuant to N.J.S.A. 39:6A-3.1 as a lower-cost alternative to standard coverage for drivers for whom: a.) standard coverage may be cost prohibitive; b.) standard coverage limits may be excessive given personal circumstances; or c.) driving uninsured in violation of N.J.S.A. 39:6A-3 may be contemplated as an alternative to standard coverage. To date, very few drivers for whom the Basic Policy appears suitable have taken advantage of the option. The Department is concerned that the negligible number of Basic Policies now in force (less than 0.22% of all policies in force) indicates that many drivers who could consider the option have not done so because they and producers lack accurate information. New Jersey has uninsured drivers who by driving uninsured are putting themselves and others at substantial risk. Drivers who elect the Basic Policy as an alternative to driving uninsured benefit both themselves and the general public. The following provides accurate information about the Basic Policy process for producers, applicants and prospective applicants. 1. Any owner of an automobile registered or principally garaged in New Jersey may elect to meet minimum mandatory insurance requirements with the Basic Policy. Owners of automobiles requiring collision coverage because of lease or financing terms for the vehicle may elect to add those coverages to the Basic Policy, with all unaffected coverages remaining as set forth in N.J.S.A. 39:6A-3.1, in cases where the insurer offers such an option.

You need to know.

Drivers who elect the NJ Auto Insurance Basic Policy as an alternative to driving uninsured gain several protections, as set forth in N.J.S.A. 39:6A-3.1, as well as a right to sue. Uninsured drivers do not have a right to sue for damages relating to the operation of their vehicle.