NJPAIP Car Insurance – Non Standard Companies & Quotes. State Licensed Producers help you.
Not having car insurance in New Jersey can be inconvenient and expensive if you get caught driving without verifiable coverage.
Although shopping around for auto insurance is the No. 1 tip, it’s not the only one because your choices may be limited at this point. Here are some ways to save including a few you may not have considered before for NJPAIP:
Get married and get older.
Install a car alarm.
Pay NJPAIP 12 months in full, once a year, rather than financing the premiums.
Buy a car with safety features such as anti-lock brake system, alarm and air bags.
Move to a “better” NJ ZIP code. Areas where there are more uninsured motorists and more wrecks and vehicle theft get higher rates.
Keep your driving record clean so your insurance company is never tempted to raise your rates.
NJ PAIP – Bodily Injury and Personal Property Liability
Two major components of a NJPAIP automobile insurance policy involve liability coverage. These areas insure the you against injuries caused to another person and to property. All 50 states and the District of Columbia require minimum liability coverage amounts. These requirements are typically listed as a series of three numbers that define how much, in thousands of dollars, the policy will cover in the event of an accident.
For example, New Jersey requires its drivers to carry minimum liability coverage of 15/30/5. This means that the insurance company will pay up to $30,000 for all people injured in any one accident, not exceeding $15,000 on any one person and $5,000 for property damage. Optional NJ Basic Policies are available to those with little or no assets to protect. A special NJSAIP, one dollar per day policy is available for those on Medicare that qualify.
However, the Insurance Information Institute warns that state minimums in New Jersey and basic and NJSAIP policies, do not provide sufficient coverage in the event of a serious car accident.
“We always recommend a little bit higher NJPAIP limits, if affordable, especially with today’s expensive cars and hospital prices.
We suggest that drivers, where affordable, have NJPAIP liability coverage that is no less than 100/300/50. That way, you’ll be able to provide $300,000 worth of injury coverage to all passengers, $100,000 to one individual and $50,000 for damage to property.
People with assets to lose in the event of a lawsuit, such as a house or financial portfolio, should consider a supplemental umbrella insurance policy. Umbrella coverage protects you in any kind of liability situation, whether the accident is in your car or in your home. For $150 to $200 a year in premiums, you can shield yourself with $1 million worth of protection. If you have assets, it makes a lot of sense.
NJ PAIP – Personal Injury Protection (PIP)
NJPIP coverage pays for both medical expenses and lost wages to the policyholder and any passengers injured in the vehicle in the event of an accident.
Mr. Ammons, Managing Director at NJ Direct Insurance, NJPAIP State Plan Services, says that people with good group medical and disability policies might not need to maximize PIP coverage. Instead, he recommends that drivers with good group health and disability insurance only take on the lowest limit of PIP coverage required.
“Even if you have health insurance, think twice before you reject or waive PIP coverage on NJPAIP or any other policy,” he argues. People with significant deductibles and co-pays should have PIP or added extra PIP.
NJPAIP – Collision and Comprehensive
These are two parts of a PAIP policy that can add significant costs to your premium. Collision provides coverage in the event of any kind of accident, whether it’s with another car or an object, such as a utility pole or fire hydrant. Comprehensive insurance covers you in the event of theft or natural disaster, a cracked windshield or hitting an animal on the road.
If you have an older car, and the cost of repairing or replacing your car may cost more than its value, therefore waiving both collision and comprehensive coverage may be best.
Keep in mind that any coverage you decline on your policy lessens your coverage you’ll need to have when renting a car, from Avis or Hertz for example. So, if you decline collision and comprehensive, you should either accept a rental car company’s insurance or use a credit card that provides rental car protection just in case.
For newer cars, you should have a deductible on both collision and comprehensive that is the maximum amount that you can afford to pay out-of-pocket for repairs. The higher the deductible the lower the premium. Insurance professionals say that the average New Jersey policy carries a $500 deductible for both collision and comprehensive claims.
NJPAIP – Uninsured Motorist
As the name indicates, this coverage provides you protection from crashes with motorists not carrying car insurance, as well as covering you in the event of a hit-and-run accident. Also, uninsured motorist insurance coverage comes into play when an at-fault driver doesn’t have enough liability coverage to pay for the damages from an accident.
Ask for discounts IN NJPAIP Coverage
Now that you understand the basic parts of a policy, you can save money on your overall cost by asking your NJPAIP Producer for any discounts available.
Discounts available vary, but typically include: safety equipment discounts (air bags, anti-lock brakes and security systems), multi-policy discounts (if you have other insurance coverage with the same company or have several family members on the same policy), good student discounts and premium reductions for driver’s education classes.
See, you don’t just buy auto insurance. You actually buy several different types of insurance: collision, comprehensive, uninsured motorists, bodily injury and so on. Some contracts mandate certain insurance, and of course, lenders or leasing companies/banks require coverage until the car’s paid for, it’s their investment you’re protecting.
Additionally, you can save money just by comparison shopping. Though some people love to shop around for cars and drive several blocks to save a few cents on fuel, few U.S. drivers bother to shop around for auto insurance. In fact, a January survey of consumers found that 58 percent were unlikely to shop for auto insurance and 29 percent said they haven’t shopped for coverage in more than five years. The Assigned Risk Insurance study also asserts that the cost of a six-month auto insurance policy for the same driver with the same coverages varies greatly from company to company the difference between the highest and lowest-cost coverage averaged $524.
UNDERSTAND YOUR NEEDS. Do you rent or own your own home? Do you have assets to protect (including income from a job)? Will your own health insurance cover auto accident injuries? How much insurance coverage can you afford? These are some of the questions you should ask yourself before choosing a specific coverage plan.
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.
• NJ Agents, brokers and companies must inform you of your coverage options when applying for a new policy, or at any time upon your request if you are already insured. You have the right to know how each choice may affect what you pay and what your benefits would be in the event of an accident. You always have the right to ask about additional options.
• You can shop for NJ Car 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 payments made.
• You have the right to change your coverage’s 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 NJPAIP Standard Policy provides a number of different coverage options and the opportunity to buy additional protection. The Standard Policy is the type of policy chosen by most New Jersey drivers.
BASIC POLICY — The NJPAIP 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).