Q1. If I own a car in New Jersey, am I required to purchase an automobile insurance policy?

A1. Yes. The insurance laws of New Jersey require the owner of every automobile registered in this State to purchase an automobile liability insurance policy.N.J.S.A.39:6A-3

Q2. What is liability insurance?

A2. "Liability insurance" protects your assets (your property and your income) if you are found to be responsible for an accident. In addition, "liability insurance" provides financial protection for any person injured in an accident that was caused by you. An automobile liability insurance policy provides an amount of money that your insurance company will pay to a person who is injured in an automobile accident and makes a claim against you.

Q3. What are the minimum policy limits for an automobile liability insurance policy?

A3. The insurance laws require every automobile insurance policy to provide minimum limits of liability coverage of $15,000 per person and $30,000 per accident. NJSA 39:6A-3. ( Click for more information on Liability Insurance )

Q1. What happens if I am involved in an accident with someone who is uninsured or has less insurance than I do?

A1. Your own policy provides uninsured and underinsured motorist coverage if you are injured in an accident caused by a driver who is uninsured or has less insurance. N.J.S.A. 17:28-1.1.

Q2. What is uninsured motorist coverage?

A2. Uninsured motorist coverage permits you to recover monetary damages from your own insurance company that you would have been legally entitled to recover from an uninsured driver.

Q3. What is underinsured motorist coverage?

A3. Underinsured motorist coverage permits you to recover monetary damages from your own insurance company that you would have been legally entitled to recover from a driver who has less insurance coverage than you do.
( Click for more information on Uninsured and Underinsured Motorist Coverage )

Q1. If I am injured in an automobile accident, who pays my medical bills?

A1. The New Jersey No Fault Act requires your insurance company to pay your medical bills up to $250,000 per person per accident, regardless of who was at fault for the accident.N.J.S.A. 39:6A-4

Q2. What is PIP coverage?

A2. Every automobile insurance policy must provide Personal Injury Protection (PIP) coverage which includes the following benefits:

1. Medical expense benefits up to $250,000 per person per accident
2. Income continuation benefits up to $100 a week subject to a maximum of $5200
3. Essential services benefits up to $12 a day subject to a maximum of $4380
4. Death benefits up to $5200 for the loss of income and $4380 for the loss of essential services
5. Funeral expense benefits up to $1000.

Q3. Can I purchase additional PIP benefits?

A3. Yes. You can purchase additional PIP benefits, as follows:

1. Income continuation benefits up to $700 a week subject to a maximum of $72,800
2. Essential services benefits up to $20 a day subject to a maximum of $14,600
3. Funeral expense benefits up to $2000.

( Click here for more information on Personal Injury Protection (PIP) Benefits )