Auto insurance. New Jersey

   Car insurance is required in New Jersey. Whether you are buying a new insurance policy or renewing your current policy, you must make many decisions about what coverage you need and how much you can pay.
UNDERSTAND CONSUMER PROTECTIONS.
   As a New Jersey auto insurance consumer, you have rights. You have a right to fair and equal treatment, and you have the right to get the information you need to make informed decisions.
   Starting in mid-2004, companies and agents must give you three coverage choices, called "Insurance Scenarios", when buying a new policy, or upon your request if you are already insured. You must be told how each choice may affect what you pay and what your benefits would be in the event of an accident.
   You can shop for auto insurance at any time - not just when your policy is up for renewal, and if you find a better price, you can cancel your old policy and seek a refund of your unused premium.
   You have the right to change your coverages and policy limits at any time, even if you are not near your renewal date. If you select options that save you money, you have a right to a refund of your unused premium within 60 days.
   There are two common types of auto insurance policies in New Jersey. They are referred to as STANDARD and BASIC. Both offer options as well.
STANDARD POLICY - The Standard Policy provides a number of different coverage options and the opportunity to buy additional protection. The Standard Policy is the type of policychosen by most New Jersey drivers.
BASIC POLICY - The Basic Policy usually costs significantly less than a Standard Policy, but provides limited benefits. It is not for everyone, but it does provide enough coverage to meet the minimum insurance requirements of New Jersey law.The Basic Policy could be an option for those with few family responsibilities and few assets to protect (including income from a job).

How to reduce your rates

   Standard policies usually carry a deductible of $250 and a PIP limit of $250,000. Consumers can save premium dollars by choosing a higher deductible of $500, $1,000, $2,000 or $2,500 and/or choosing one of the lower PIP limits of $15,000, $50,000, $75,000 or $150,000.
   Consumers can save premium dollars by choosing their health care insurers as primary in the case of auto accident-related injuries. It is important to check with your health care insurer before choosing the Health Care Primary Option.
   The make, model and value of your vehicle affects the cost of your auto insurance premium. Generally, an older vehicle will cost less to insure, while a high performance or luxury car will cost more.
   In many cases, consumers can save premium dollars by choosing higher deductibles or eliminating coverage for older cars that are paid in full. Remember, a higher deductible means you will pay more out of pocket in the event of an accident. You will need to decide how much you can afford to pay if an accident occurs.

Ask your insurer if you are eligible for discounts:

• Multiple Car/Other Policies
• Vehicle Safety Features
• Good Student
• Defensive Driving