The Garden State requires that drivers have vehicle insurance while operating a vehicle, yet allows people a choice in the type of coverage they acquire. Many different motorists comply with this law by choosing to purchase either a basic or a standard policy. Each of these offer different degrees of protection that are each suited for different individuals with unique needs and driving habits. Before getting vehicle coverage quotes, it is good for motorists to know what they are considering purchasing and the difference in the two options in policies.

A basic New Jersey car insurance policy is one that offers the bare essentials of coverage and usually costs less than a standard policy. For people with low incomes, few assets that need protecting, or have minimalistic driving habits, this would be an excellent plan to pursue because it meets the state requirements at the lowest possible price. Basic protection, however, does not come with very much coverage. Typically, it does not include bodily injury liability and only includes $5,000 worth of property damage liability per accident. The only other inclusion is personal injury protection worth $15,000 per person, per accident, with up to $250,000 for permanent or significant injuries, such as brain damage, spinal cord injury, or disfigurement. Other additions are available from select carriers, but typically adding these results in a more expensive policy. However, standard policies are available and can provide even more options to drivers.

NJ Standard Insurance Policies

Purchasing a standard vehicle insurance policy offers motorists considerably more protection, but with a higher price tag. With this plan, drivers would get Bodily Injury Liability as low as $15,000 per person, and $30,000 per accident, with the limit being as high as $250,000 per person and $500,000 per accident. Additionally, Property Damage Liability would be increased to a minimum of $5,000 and as high as $100,000 or more. Personal Injury Protection could be set to as high as $250,000, and additional Uninsured/Underinsured Motorist Coverage would be available to reimburse a policy owner in the event that they were involved in an accident that was caused by an uninsured motorist, or even an accident caused by a driver whose policy would not provide adequate compensation for claims.

Although both plans meet the state requirements, each are not equally suitable for every driver. Young motorists and students would usually be drawn to the basic policy because it offers just the right amount of protection that they are looking for, at a price they can usually afford. People with few assets that need to be taken care of would also fit into this category, or people who are simply on a budget. Motorists, who own expensive cars, homes and are in need to protect assets however, would most likely consider the standard plan. This would more adequately cover losses that the policyholder may cause and help avoid the need to use personal assets to compensate a third party. Residents can visit the New Jersey Department of Banking and Insurance which provides an explanation of the difference in policies and suggestions for consumers.