subject: Information About The Requirements Of New Jersey Auto Insurance Laws [print this page] Drivers in New Jersey, USA, are legally required to buy adequate auto insurance for their cars. In the event of the car being involved in an accident, auto insurance ensures that the costs associated with the accident are recovered. New Jersey auto insurance companies have a number of policy options available for a driver to select, but no matter which level of cover is chosen, all polices focus on ensuring that damage is repaired or the vehicle replaced with minimum financial loss to the policy owner.
Importance of careful selection of insurance companies: Policies available to drivers depend on certain criteria prescribed by the insurance provider and may include the drivers age, experience and driving record.
Taking your time to choose an appropriate policy and company to provide that policy, may save thousands of dollars in the event of an accident requiring a claim being made against the policy.
Auto insurers in this state provide two different types of policies. These policies are either the Standard policy or the Basic Policy. A comprehensive one covers a vehicle in the event it is stolen or damaged in a situation not necessarily the result of an accident. Comprehensive cover may be required when leasing or hiring a car.
How to Choose a Policy: Most New Jersey drivers buy the Standard Policy and this policy include the ability to purchase additional protection. The basic policy provides limited benefits at a reduced cost to the purchaser. They satisfy New Jersey law, but are very restricted in terms of compensation provided when a claim is made.
The small print is essential reading prior to selecting a policy: Most policies have specific exclusions or other criteria attached to them that will determine if and how much can actually be paid to the purchaser when a claim is filed. The age, experience or driving record of a driver may directly affect what is covered on the policy. Prior to purchase it is essential that the consumer understands and accepts these special regulations.
How Much Does a Policy Cost? Drivers in this state pay for coverage based on their assigned driving status. Drivers are either considered to be in the regular market or in the assigned risk market and the cost of the selected policy type will depend on their assigned status. The protection provided by the policy must be adequate for the individual drivers situation and personal needs.
by: Lance Thorington
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