10/07/2019
Make Smart Choices On Auto Insurance Coverage
In the State of NJ many purchasers of auto insurance never speak with an insurance expert, or if they do the auto insurance representative may be tempted to offer or propose the least expensive coverage as opposed to coverage that truly meets the needs of the insured. Here are a few common pitfalls: 1. Selecting less than $250,000 in medical or Personal Injury Protection Coverage can be very unwise unless you have Major Medical coverage that will pay for medical treatment that arises out of a motor vehicle accident. 2. Choosing minimum liability coverage of $15,000/$30,000, or other low liability protection levels. If you own a home your liability coverage should never be less than $250,000 in my opinion, and higher coverage are appropriate depending upon the value or equity in your home, your assets and income. If your liability coverage is less than the value of the injuries caused by your negligence, then the Plaintiff could pursue a recovery against your personal assets. 3. Your Uninsured/Under-insured coverage which protects you and your family from personal injury caused by an uninsured or under-insured driver should never be less that your liability coverage, and is yet another reason to carry higher levels of liability coverage...so that you can purchase the same levels to protect you and your family from an uninsured or under insured driver's negligence. 4. Lawsuit Threshold by choice or by default is a bad option. It severely limits your right to sue for injuries unless those injuries meet or exceed certain criteria: "Death, dismemberment, significant disfigurement, a displaced fracture, loss of a fetus, or a permanent injury that can be shown by objective medical evidence." You may be significantly injured by the negligence of another but be barred from recovering for pain and suffering if you have chosen lawsuit threshold but your injury does not meet the criteria indicated in the preceding sentence. Zero threshold usually costs about $300 to $400 more per car, but it is always the best choice if you can afford it. Check with your insurance agent as to the actual cost. Purchasing an auto policy with reduced coverage is not a problem...until you need the coverage. Best not to cut corners when it comes to auto insurance.