The Major Types of New Jersey Auto Insurance

When it comes to New Jersey auto insurance there will be different options offered by different companies such as However, there are three major types of car insurance that will be covered by all. Understanding what these major types are will help you to determine what coverage you actually need, as well as what level limits would be best suited to you.

Liability Coverage

In the state of New Jersey liability coverage is required by law. The point of this coverage is to provide funds to cover the cost of personal injury and property damage of another driver in an accident where you were at fault. This will not provide you any financial protection in the face of your own injuries and property damage. The basic liability coverage is usually $50,000 bodily injury coverage per person, $100,000 bodily injury coverage total and $50,000 property damage coverage, as this is the minimum required by the state. Purchasing a New Jersey auto insurance policy that only includes liability coverage will definitely be the cheapest option available, however it is not always the best option. As well as, you may think that purchasing only the minimum coverage will give you enough protection, however in many cases this is not true. Just one bad crash could easily mean that the cost skyrockets above the maximum that your insurer is willing to pay out, and will leave you having to cover the costs yourself which may ultimately leave your assets vulnerable.

Collision Coverage

Collision coverage will not be offered on basic policies, and is considered an extra. It is definitely worth considering as it will cover the damage caused to your own car in a crash when you are at fault. In some cases it will pay for damage caused when another driver is at fault, but only in certain situations. The cost of this coverage will depend on the value of your car.

Comprehensive Coverage

This kind of coverage covers literally any car related incident you can think of apart from damage caused in a crash. Therefore comprehensive coverage will pay for things like unexpected repairs, damage caused by severe weather, as well as auto theft. Like collision coverage, the cost of this coverage will likely depend on the value of your car. However you will be able to have control over the deductible. The deductible is the amount that you pay out before the insurer steps in and covers the rest.