Any vehicle which comes up for registration in the city will have to be insured against accidents and other mishaps. The type of policy which covers only the liability is to be taken only as a last resort because it does not cover the damages to ones car nor the personal injury it takes care of only the other party who may be involved in an accident. The best policy which is called the standard policy covers liability, personal injury as well as the other party who may be uninsured. It is better to be covered by the standard policy than to be partially insured
The decision of selecting the right insurance policy lies with the customer. They must take their time and decide which the better option is by understanding what exactly will be covered in that particular policy when one gets involved in an accident. According to the state of New Jersey, they suggest that the individuals with less family responsibility and also those who are not having any real assets like teenagers, young drivers take up the Basic insurance policy as they may not be able to pay for the extensive protection, Whereas a person who is having a family and has assets may take up the standard policy which will cover all the damages in event of an accident. If and when a policy holder ahs caused an accident then there may be a Judicial intervention which may result in the policy holder having to compensate the other party involved in the accident.
Difference between the Basic and the standard policy
The person who wants to take up and insurance policy must be aware of the difference between the policy the types and what exactly it covers. They must thoroughly examine the pros and cons when selecting and opting for the particular type of policy, what exactly they cover. In case of damage to the property then a basic policy offers only $5000 whereas $15000 would be offered for personal injury protection for a person, for an accident, and upto$250000 for certain specific types of injuries. A Policy may not cover a bodily injury liability but that may be added by buying an extra for a maximum limit of $10000. The availability of the comprehensive and collision is dependent on the person who buys the policy. Certain high risk category drivers cannot avail special collision coverage because of the risk that the insurance company has to take in doing so.
In case of Standard insurance policy, the coverage would be a little more extensive, as bodily injury liability can be purchased up to $30000 per accident and up to $ 250000 per person for an accident. Against the basic policy the property damages claim can be insured for as high as $100,000 as compared to a sum of $5000 in the basic policy. Personal injury protection may range from $15,000 to $25,000 along with the uninsured and under insured motorist coverage which is not so in the basic policy. The best suggestion would be for customers to go through the New Jersey Auto Insurance shopping guide before deciding on which type of policy they must go in for. It is always better to take an informed decision rather than taking a plunge into the dark.
