It is mandatory in New Jersey to possess automobile insurance. Not covering yourself with auto insurance in NJ is violation of the law. There are severe penalties for uninsured driving in New Jersey. There is a Basic Policy enforced for NJ auto insurance that can be considered by those with few real assets and family responsibilities. This provides a transition for drivers who are on the threshold of a working life and need basic and minimum protection plan. They can avail the Basic Policy instead of comprehensive coverage. This policy was created as a result of the new reforms in NJ auto insurance. The Basic Policy has a Personal Injury Protection (PIP) medical expense limit of $15,000 and coverage of hospital care and significant injuries up to $250,000. An additional option is a bodily injury liability cover of $10,000.
New Jersey auto insurance system has been seeing the over use of medical benefits. Hence a new arbitration system has involved an independent panel of medical peer to resolve conflicts on what treatment is necessary medically. Consumers of auto insurance in New Jersey can opt to buy lower limits of PIP. The option to sue for any reason, regardless of the severity of the injury is available for a significantly higher premium. But the new NJ auto insurance reforms limit the threshold language used while defining injuries. In New Jersey, auto insurance companies follow a tiered rating system to classify drivers, based on their driving experience and other factors such as coverage limit and vehicle type. The core basis for classification is the risk characteristics. But the tiering system may vary from company to company. Some exceptions are made to protect consumers. Some of the exceptions are life-altering events such as death of a spouse, divorce, major illness or injury and recent loss of job.
NJ Auto Insurance Quote
In 1992, the New Jersey Legislature created two insurance programs to provide health coverage for all -- regardless of health status, claims history or other risk factors. The Individual Health Coverage Program (IHC) and the Small Employer Health Benefits Program (SEH) have brought about reform in the health insurance market for small employers and individuals. After that The Insurance Council of New Jersey (ICNJ) was established in 1977. The council is a non-profit insurance research and advocacy organization. It represents 27 New Jersey licensed property / casualty insurance companies. Collectively the ICNJ member companies underwrite 89% of automobile policies, 65% of homeowner's insurance policies, 56% of commercial insurance and more than 56% of workers compensation policies. 'Access' is a New Jersey insurance program providing subsidized individual health coverage for those who cannot afford it. The Health Insurance Bureau of the state reviews the individual and group health insurance contracts and rates. Its gamut of operations encompasses disability income, long term care, Medicare supplement, accident-only, hospital confinement indemnity, dental care, vision care and health care. The New Jersey insurance department has a Property and Casualty Section to regulate rates in that sector. This section plays an investigative role to ensure that companies charge rates that are not excessive but adequate to provide required coverage.
As per the New Jersey auto insurance laws, in a standard insurance, regardless of who may be at fault, Personal Injury Protection pays up to a maximum of $250,000 per person/accident for medical bills, lost wages and other costs. In a standard New Jersey auto insurance the individuals may choose between various levels of PIP coverage ranging in order of $250,000, $150,000, $75,000, $50,000 or $15,000. The auto insurance coverage also includes catastrophic coverage. New Jersey auto insurance also provides for coverage such as the Bodily Injury Liability Coverage (BI), Property Damage Liability Coverage (PD), Uninsured or Underinsured Motorist (UM/UIM).
