Difference of Basic and Standard NJ Vehicle Insurance
Difference of Basic and Standard NJ Vehicle Insurance A basic NJ vehicle insurance policy provides only the absolute minimum allowed by the state in order to legally satisfy the requirement of the state. This includes $5,000 for property damage liability, $15,000 in personal injury protection (PIP) per accident (up to $250,000 for certain injuries.) and the option to purchase bodily injury liability at a maximum limit of $10,000. A major setback of these policies is that uninsured and uninsured motorist is not available to policyholders and only certain insured that sell basic policies will offer physical damage protection (comprehensive and collision.) The state only recommends that individuals with few family responsibilities and assets to protect consider this coverage.
Standard policies are the most common choice among NJ’s motorists and with good reason; it can provide much more protection and many more coverage options. A standard policy comes with bodily injury limits of $15,000 per person and $30,000 per accident with the option to go as high as $250,000 and $500,000 respectively. It as comes with $5,000 in property damage liability of $5,000 which can be raised to more than $100,000, depending on the insurer. The minimum limit of PIP is the same at $15,000 but can be raised to over $250,000 and policyholders can also purchased uninsured and underinsured motorist coverage matching their liability limits.
In addition, comprehensive and collision coverage is also available by the carrier chosen. One can see why it may be a wiser choice to go with standard policies rather than basic. To make a more educated decision, consumer may want to refer to the New Jersey vehicle insurance Shopping Guide for more information.