People involved in New Jersey car crashes may have a false sense of confidence afterward. They believe that they have full coverage and that all of their collision losses are eligible for insurance coverage.
Unfortunately, full coverage is not a legal term nor a specific type of policy available in New Jersey. People who believe they have full coverage typically carry a combination of the mandatory liability insurance and no-fault personal injury protection (PIP) coverage required by state law, as well as collision and comprehensive coverage.
Understanding the gaps in what people may assume is full coverage can help drivers when they review and renew their policies or as they file claims for compensation after a car crash.
What mandatory policies cover
In New Jersey, drivers need to carry property damage and bodily injury liability coverage. The state requires $25,000 in property damage coverage. Drivers also need to have at least $25,000 in injury-related liability coverage in case they hurt one person and $50,000 in coverage per incident in case multiple people sustain injuries. That coverage pays for other people’s losses when a driver is at fault for a crash.
The mandatory PIP coverage provides no fault coverage for medical costs and lost wages. Many New Jersey drivers have $250,000 in PIP coverage.
What supplemental coverage provides
Comprehensive and collision coverage are both common additions to basic insurance policies. Drivers may need this additional coverage if they have a leased or financed vehicle. These additional forms of coverage help pay for damage caused by weather, such as a tree branch striking a car parked on a public street or repair costs after a crash.
Many drivers also carry uninsured and underinsured motorist coverage in case of hit-and-runs or crashes caused by drivers who either lack insurance or carry the minimum amount of coverage required by law. Even with supplemental coverage, there are many financial gaps.
Policies often do not include roadside assistance, rental reimbursement and gap insurance for totaled vehicles. Drivers may need to pay a sizable deductible out of pocket before the insurance company pays for their losses.
New Jersey drivers may need guidance as they prepare to renew their policies. They may also need support when they file claims. In some cases, a lawsuit may be the only way to fully cover all collision costs. Reviewing policy information and collision expenses with a car crash attorney can help New Jersey drivers understand their options.