Mandatory New Jersey liability coverages
New Jersey tort options
The right to recover damages is legally known as tort options. The state of New Jersey requires you to select one of the following tort options to define your right to compensation in the event that another party injures you or members of your household in an auto accident:
- Limited right to recover damages (Limited tort)
If you select the limited tort option, your rights to financial compensation for injuries caused by other drivers will be limited. However, your premiums for property damage liability, full first party benefits (FPB), and FPB income loss coverages will be lower than if you had selected full tort. Under the limited tort option, you (the insured) and other resident relatives are entitled to recover damages for medical and other out-of-pocket expenses related to a covered accident. However, you will not be eligible for financial compensation for pain and suffering or other non-monetary damages, unless your injuries are categorized as serious (e.g., a life-long disability, an injury resulting in death, etc.).
- Full right to recover damages (Full tort)
If you choose the full tort option, your rights to financial compensation for injuries caused by other drivers is unrestricted. However, your auto insurance premium will not be reduced. Under the full tort option, you (the insured) and other members of your household may seek recovery for all medical and out-of-pocket expenses. You are also allowed to seek financial compensation for pain and suffering and other non-monetary damages for injuries caused by other drivers in a covered accident.
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Bodily injury
If the policyholder or another driver covered by the New Jersey policy is found to be at fault in an accident resulting in injuries or fatalities, the following is covered under bodily injury coverage:
- Medical expenses
- Lost wages
- Pain and suffering
- Legal defense if the drivers listed on the policy are involved in a lawsuit resulting from a car accident
Who's covered?
Bodily injury coverage pays for damages caused to a third party.
How much protection does this coverage provide?
The dual coverage limits you select in your New Jersey auto insurance quote refer to the maximum amounts that will be paid per person, per incident, respectively.
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Property damage
If you or another covered driver is found to be at fault in an accident, the following is covered under property damage coverage:
- Damage to another person's property (e.g., fence, car, or home)
- Legal costs associated with a damage incident
How much protection does this coverage provide?
The coverage limits you set in your auto insurance quote refer to the maximum amounts that will be paid per accident.
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Personal Injury Protection (PIP)
If you're insuring multiple cars, the coverage you select will apply to each car. PIP covers your reasonable expenses if you or your passengers are injured in an auto accident, regardless of fault. You may choose from 4 types of PIP coverage. All 4 include medical coverage, as either primary (options 1 and 2) or secondary (options 3 and 4) coverage. Medical expenses may include medical and surgical treatment; dental and optometric treatment; ambulance and nursing services; necessary medications, medical supplies, and prosthetic devices. The 4 options are:
- Full PIP Primary — acts as the primary coverage for injuries sustained by you or your passengers in an auto accident. This option also covers income continuation, funeral expenses, death benefits, and essential services expenses, as detailed below.
- Full PIP Health Primary — should be purchased if another health insurance provider acts as the primary coverage for injuries sustained by you or your passengers in an auto accident. This option also covers income continuation, funeral expenses, death benefits, and essential services expenses, as detailed below.
- Medical Only PIP Primary — acts as the primary coverage for injuries sustained by you or your passengers in an auto accident.
- Medical Only Health Primary — should be purchased if another health insurance provider acts as the primary coverage for injuries sustained by you or your passengers in an auto accident.
Additional coverage included in full PIP (options 1 and 2 above):
- Income continuation — If a covered individual is unable to work, PIP will help pay for income compensation.
- Funeral expenses — If a covered individual dies from accident-related injuries, PIP will pay a maximum of $1,000 towards funeral expenses.
- Death benefits — If a covered individual dies from accident-related injuries, PIP will pay the insured's designated beneficiary $5,200 less any income continuation benefits paid to the income producer before death.
- Essential service expenses — Should you or your passengers need help performing household or other tasks due to accident-related injuries, PIP also helps pay for such substitute services. Payments are limited to $12 per person, per day for up to a maximum of $4,380.
Who's covered?
PIP covers policyholders, resident relatives of the policyholder, and authorized drivers and passengers in the insured vehicle who are residents of New Jersey.
How much protection does this coverage provide?
The coverage limit you set in your New Jersey auto insurance quote refers to the maximum amount that will be paid per accident.
When you purchase PIP coverage, you'll need to select a deductible. You are responsible for paying the deductible amount in the event of an auto insurance claim.
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Uninsured/underinsured motorist bodily injury
Uninsured/underinsured motorist bodily injury coverage is required in this state if you have a standard policy. This coverage is not available for basic policies. The limits you select for this coverage cannot exceed your bodily injury limits. Also, if you choose to have this coverage apply to multiple cars, you must select the same limit for each car.
How do I know if I have a standard policy or a basic policy?
Any policy with bodily injury limits of $15,000/$30,000 or higher is considered a standard policy. Any policy with no bodily injury coverage, or with bodily injury limits of $10,000/$10,000, is considered a basic policy.
What's covered?
If the covered individuals are injured in an accident caused by a driver who has no insurance or insufficient coverage, compensatory damages that a policyholder is entitled to receive will be covered.
Who's covered?
- Policyholder
- Other authorized policy member
- Passengers
How much protection does this coverage provide?
The dual coverage limits you see in your quote refer to the maximum amount that will be paid per person, per incident, respectively. If the other driver is uninsured, this coverage can generally pay up to the limit you purchase. If the driver is underinsured, this coverage typically pays the difference between what's covered by the other driver's insurance and what's covered by your bodily injury coverage. If the limits you purchase are lower than an accident's costs, you'll be responsible for paying the amount over your limits, unless you're covered by health insurance.
Who might benefit from buying uninsured/underinsured motorist bodily injury coverage?
Individuals without health insurance may benefit from this coverage, because if the limits chosen are inadequate, you'll be responsible for paying the additional amount.
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Optional New Jersey liability coverages
Extended medical coverage
Extended medical coverage pays for medical and dental treatment, hospitalization, professional nursing services, prostheses, and funeral expenses if a covered driver and/or accompanying passengers are injured while in an insured vehicle, regardless of who is at fault in the accident.
Extended medical coverage may also cover policyholders and their family members when they're injured while riding in someone else's car or if a car hits them while on foot or bicycling.
If you and your regular passengers already have health insurance that covers similar expenses, extended medical coverage may be unnecessary. Check your New Jersey health insurance policy for details.
The coverage limit refers to the maximum amount that will be paid per person, per accident.
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Additional Personal Injury Protection (APIP)
Additional Personal Injury Protection (APIP) coverage is optional in New Jersey. If you select this coverage and you have multiple cars, the coverage you select will apply to each car.
APIP acts as a supplement to the PIP coverage required by your state. It's only available when you purchase full PIP health primary coverage or full PIP primary coverage.
You can select one of sixteen levels of APIP. These levels refer to the amount of income continuation and essential services you'll receive per week and the maximum amount that will be paid, respectively.
- Income continuation – If a covered individual is out of work due to accident-related injuries, APIP helps cover your lost wages.
- Funeral expenses – If a covered individual dies from accident-related injuries, APIP will pay a maximum of $2,000 toward funeral expenses.
- Death benefits – If a covered individual dies from accident-related injuries, APIP will pay the insured's designated beneficiary $10,000, less any income continuation benefits paid to the income producer before death.
- Essential service expenses – If a covered individual needs help performing household or other tasks due to accident-related injuries, APIP helps pay for such substitute services.
Who's covered?
You can select APIP for the insured only, or for the insured and relatives of the insured who do not have their own auto insurance policy.
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Uninsured motorist property damage
If you want to carry this coverage on multiple vehicles, the limits must be the same for each vehicle.
Uninsured motorist property damage coverage protects a policyholder whose vehicle is damaged in an accident involving a driver who has no insurance coverage.
How much protection does this coverage provide?
If the other driver involved in an accident is uninsured, this coverage pays up to the limit you purchase. The coverage limits you see in your quote refer to the maximum amount that will be paid per incident. Check your policy for specific details referring to any deductible for this coverage.
If you wish to decline this coverage, you'll need to do so by signing a form, which Esurance will send you with your policy documents.