What Kind of Car Insurance Should I Have?

You have seen the commercials advertising savings and low rates, but do you know the kind of coverage you really should have? The least expensive option may save you a few dollars every month, but that minimum coverage may not fully protect you—or your assets—if you’re at fault for causing an accident. When choosing your auto insurance, take a look beyond the monthly premium and you can better protect yourself for the long-run.

In New Jersey, drivers are required by law to maintain minimum liability limits in the amount of “15/30/5.” This provides $15,000 of bodily injury liability for one person, $30,000 bodily injury liability for all people involved in an accident, and $5,000 property damage liability. Seem like enough to you? There’s a good chance that if you’re found at fault for an auto accident, you’ll wish you had chosen higher coverage protections.

Think about it this way: a scratched or dented bumper on a newer-model car can cost upwards of $2,000. Even in a “fender-bender,” $5,000 may not cover the damage you (accidentally) cause to another vehicle.  What does that mean? You may then find yourself on the hook to pay the remaining amount over your $5,000 insurance coverage.

Liability coverage is different from comprehensive and collision coverage, which applies to damage to your own vehicle. Liability coverage, such as the 15/30/5 discussed above, is the amount of coverage you have to pay for damage to another person’s vehicle or for injuries they sustain in an accident where you are at fault.

Accidents are usually just that—an accident. But choosing wisely now and looking beyond the lowest monthly premiums may cost you an extra few dollars per month, but you’ll have more peace of mind with your additional coverage. 

If you have legal issues arising out of insurance coverage, our firm has extensive experience regarding those claims.  Feel free to contact us as (732) 545-4717.