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Nobody wants to get into an automobile accident. Unfortunately, accidents do happen. When one does get into an automobile accident, it is always an unpleasant experience. The only thing that can make that experience even more unpleasant, is to learn, afterwards, that you purchased inadequate insurance coverage to cover your needs, whether you suffered a loss, or caused a loss to someone else.
This article will attempt to answer some of the most commonly asked questions regarding automobile insurance selection. It may help to place this article with your insurance documents for future reference, if needed.
On March 22, 1999, a new auto insurance law went into effect, which many New Jersey residents do not know about. This law is known as The Automobile Insurance Cost Reduction Act. The "Cost Reduction" that was hoped to be accomplished by the new law has resulted in substantially cutting your rights and insurance coverage. Although the "cost" to the insurance companies may have been reduced, you may have noticed that your "premiums" may not have had the same reduction. It is, therefore, imperative that you specifically choose to protect and maximize your rights, by selecting the proper automobile insurance coverage.
You should keep in mind that the automobile insurance coverage decisions which you make will affect not only your rights to appropriate medical treatment and your right to sue for injuries, but may also impact the rights of the resident members of your family. This article hopes to answer the necessary questions to assist you in selecting the best automobile insurance coverage.
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A: Probably not. One agent's definition of full coverage is most likely different from another's. Also, "full coverage" does not mean that you have enough coverage, or the right coverage, to protect you and your family members. Remember, New Jersey does not allow a car insurance agent to be sued because you were harmed by selecting minimal coverage.
A: You have many choices to make. These choices include whether to take the basic or standard policy, the amount of your PIP (Personal Injury Protection/no-fault/medical) coverage, the amount of underinsurance coverage, the amount of liability coverage, whether you have an unrestricted right to sue for your injuries, coverage for damage to the car, etc.
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A: It is strongly recommended that you do not purchase the "Basic Policy." The "Basic Policy" provides you with virtually no insurance coverage. If you or a family member were involved in an incident, you would only have $15,000 in PIP coverage (Personal Injury Protection/no-fault/medical coverage) subject to limited exceptions. If the other driver sued you, you would have minimal, if any, insurance coverage for their injuries. The insurance company might not provide you with a lawyer to defend yourself. If a judgment is taken against you, which remained unpaid, you could lose your assets, forfeit your New Jersey driving privileges, etc. Furthermore, if an uninsured driver injures you, you will not receive any insurance compensation for your bodily injury pain and suffering.
A: It is recommended that you purchase the "Standard Policy." The "Standard Policy" provides liability coverage, and an attorney, if necessary, if someone makes a claim against you, or sues you for bodily injury, with a minimum of $15,000 per person and $30,000 per accident. You also get $5,000 in property damage liability coverage and $250,000 in PIP (medical) coverage. It is strongly recommended that you purchase the "Standard Policy" with increased coverage limits.
A: This is an extremely complicated question to answer since all health insurance plans are different. If you feel that you have good health insurance plan, with flexible treatment options, then you may consider making your health insurer primary. Bear in mind that your health insurance plan may have certain coverage exclusions for automobile accidents. Furthermore, by electing to waive your PIP benefits, you would also be waiving other benefits, including death and essential services benefits. It is strongly recommended that you discuss this issue with your auto insurance agent and health insurance agent and health insurance provider and carefully read your policy(s) before making this decision.
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A: If you are injured in an automobile accident, your right to sue for pain and suffering will be decided by what type of "Threshold" you select, with limited exceptions. Under the present law, you have a choice of either (a) "Limitation on Lawsuit option" (also known as the "Verbal" or "Lawsuit Threshold" or (b) "No Limitation on Lawsuit option " (also known as the "Zero Threshold"). It is strongly recommended that you choose "No Limitation on Lawsuit option." Bear in mind that if you don not make a specific request, you will automatically be given the "Limitation on Lawsuit" option, which dramatically limits your right to sue for bodily injury, pain and suffering, if you are injured in an automobile accident.
A: Under these circumstances, you are insuring yourself through what is known as UM/UIM (uninsured and underinsured) coverage, if you are injured as a result of a hit-and-run collision, or by another driver who has little or no coverage, then your own UM/UIM coverage will cover you for your pain and suffering, lost wages etc., and probably your resident relatives as well. You may purchase this coverage up to the amount of your liability coverage, It is strongly advised that you up the amount of your liability coverage. It is strongly recommended that you choose to purchase the maximum UM/UIM coverage available to you. Be aware that your "Threshold" selection will apply to any UM/UIM claim.
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A: You need enough insurance coverage to protect all of your assets and investments, bank accounts, houses, cars, etc. You may need insurance to protect your income, which may be garnished if not covered by sufficient insurance. By purchasing higher bodily injury liability coverage, you will be permitted to match that coverage with your own uninsured and underinsured coverage. It is strongly recommended that you purchase the maximum coverage available to you by your insurance carrier.
A: Yes. You can purchase what's known as "umbrella" insurance coverage. If you are sued, this coverage may give you additional coverage above your automobile insurance coverage.
A: You are breaking the law if you own a car and do not insure it. If you are involved in an accident and you are uninsured, you may face serious sanctions if someone is injured. You may also lose your driving privileges, pay large fines and probably lose your right to sue for your injuries.
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A: If you are injured, you should immediately go to a hospital or physician of your choice. For the first ten (10) days, your related medical care does not need to be pre-certified by any insurance company. At the scene of the collision, make sure that you have told the investigation police officer your entire version of the accident. Tf possible, get the names and addresses of all the witnesses. You must report the incident to your insurance company as soon as possible. Before having your car repaired, be certain to take pictures of all-visible and ail-under bumper property damage and make sure all the involved insurance companies understand that you are about to make repairs to your car.
It is not recommended that you give a statement to the other driver's insurance company without first speaking with an attorney.
Most importantly, it is imperative that you speak with an attorney who is experienced in the area of personal injury and automobile insurance as soon as possible. We, and the attorneys at the Law Offices of Prince and Portnoi, P.C., offer free consultation in the area of personal injury and insurance coverage.
Andrew S. Prince, Esq., is an Attorney at Law who dedicates his career to assisting persons with injuries and their families in his practice at Prince and Portnoi, P. C.
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