1. Know Your Coverage Types
People call here everyday asking for New Jersey Auto Insurance quotes -but do those people really know what they are buying insurance for? Although they are buying a
single insurance policy covering a specific vehicle, a number of
components make up the final cost:
- Bodily injury liability: Covers injury and death claims against you, and legal costs, if your car injures or kills someone.
- Property damage liability: Covers claims for property that your car damages in an accident. Because liability coverage protects the other party, it is required in all but three states.
- Medical payments:
Pays for injuries to yourself and to occupants of your car. This is
optional in some states. In “no-fault” states, personal injury
protection replaces medical payments as part of the basic coverage.
- Uninsured motorist protection:
Covers injuries caused to you or the occupants of your car by uninsured
or hit-and-run drivers. “Under-insured” coverage also is available, to
cover claims you may make against a driver who has inadequate insurance.
In some states, as many as 30 percent of drivers are uninsured.
- Collision coverage: Covers damage to your car up to its book value.
Collision coverage carries a deductible, which is the amount per claim
you have to pay before the insurance takes effect. The lower the
deductible, the higher the premium. While it is legally optional, a
lending institution or leasing company usually requires collision
- Comprehensive (physical damage): Covers damage to your car from theft, vandalism, fire, wind, flood, and other non-accident causes. Comprehensive also carries a deductible.
Lesson over! So next time you are are shopping around for New Jersey Auto Insurance quotes you’ll know what you are paying for!