To determine what is needed for your personal auto insurance in New Jersey, you first must figure out the value of your assets, including debt, state requirements, and how often you’ll drive as these factors will all impact your unique needs.
There are three basic types of auto insurance: liability, comprehensive, and collision coverage. There are additional types of coverage that can be helpful if you have a car loan, need to rent a car due to an accident, require roadside assistance, have aftermarket parts on your vehicle, or just want the extra comfort that you can add to your policy.
Not all of these types of coverage are mandatory, but that doesn’t mean that they aren’t important. Going without these key coverages could lead to some costly situations for you down the line. Let’s take a closer look at the types of auto insurance coverage.
Liability insurance covers costs related to a crash that you’re responsible for. It covers the driver and passengers in the vehicle that you’re involved in an accident with, but not you or your passengers. This type of policy can be subdivided into bodily injury liability and property damage liability. You’ll often find these policies written with three numbers indicating the amount of coverage you have. Some policies may list the total amount rather than a broken-down amount. Make sure the coverage amounts are identified separately. Liability car insurance protects you from losing everything if you’re sued for causing a bad accident. It’s also the type of coverage most states require car owners obtain.
How much you need depends on the value of your assets, or what your combined savings and property are worth. It’s highly dependent on your financial situation. The more you own, the more liability insurance you should have. The two main types of liability coverage are:
- Bodily Injury – If you cause an accident and someone becomes injured, you’re responsible for the cost of their medical care, which can include long-term care. This will cover those in the other vehicle/s.
- Property Damage – In the event of a crash, you may have to pay to repair a vehicle, cover the cost of a totaled car, or pay to repair damaged landscaping, buildings, or other structures affected by your accident. This covers damage done to other people’s property.
Collision insurance covers the damage to property that liability coverage doesn’t cover. If you’re involved in an accident and need to repair or replace your vehicle, collision coverage pays for those expenses. Your premium depends on how high your deductible is. The higher the deductible, the less your monthly cost will be because you are assuming more risk.
If your vehicle becomes damaged outside of a collision, you can claim the damage under a comprehensive insurance plan. Damage caused by inclement weather is also covered under this policy. You’ll want to choose a plan carefully.
Personal auto insurance in New Jersey should be tailored to your needs. If you aren’t sure about what you need, contact your auto insurance agent today! They would be happy to answer your questions and help you find the right coverage solution.
About SB One Insurance Agency
At SB One Insurance Agency, we have served the businesses and residents of New Jersey, New York, and Pennsylvania for more than 60 years. We are a wholly-owned subsidiary of SB One Bank, the region’s premier banking institution, and we are prepared to offer you personal, business, employee benefit, and risk management solutions. To learn more about our coverage options, contact our specialists today at (888) 990-0526.