The standard private passenger New Jersey car insurance policy can have up to four different coverage’s.
Only the first coverage is standard – the remaining three coverage’s are optional.
Part A of a NJ car insurance policy provides liability coverage that protects the insured from lawsuits arising from either the negligent operation or ownership of a covered automobile. There are two coverage’s provided in Part A – bodily injury liability (BIL) and property damage liability (PDL).
BIL provides coverage for the bodily injury claims of people you negligently injure in an accident.
PDL provides coverage for any third party property damage claims that the courts determine you are responsible to pay.
Part B provides medical payments to the policy owner and any other passengers in the car when there is an accident.
Part C provides uninsured motorist and underinsured motorist protection for the policy owner.
Both coverage’s are designed to compensate the injured policy owner when the negligent driver has an insufficient amount of liability insurance under his/her own policy. Typically, Part C covers only bodily injury losses, but property damage losses are included in some states.
Part D covers damages to your car when it is involved in an accident.
What is the difference between NJ car insurance policy collision physical damage coverage and NJ car insurance policy comprehensive physical damage coverage?
Both collision and comprehensive are NJ car insurance policies Part D coverage’s.
Collision is defined as losses you incur when your automobile collides with another car or object. For example, if you hit a car in a parking lot, the damages to your car will be paid under your collision coverage.
Comprehensive provides coverage for most other direct physical damage losses
Comprehensive provides coverage for most other direct physical damage losses you could incur. For example, damage to your car from a hailstorm will be covered under your comprehensive coverage.
It is important to know the differences between the collision and comprehensive coverage’s for a couple of reasons.
First, in order to make an informed purchasing decision about these optional coverage’s, you need to know the difference between them.
Second, the deductibles under the collision and comprehensive coverage’s are often different in amount.Save money by requesting higher deductibles, which is the amount of money you pay out of pocket before you make a claim. Increasing your New Jersey car insurance deductibles on collision and comprehensive coverage from $500 to $750, or even $1,000, will bring your rates down. Also, you may not need collision and comprehensive coverage if you drive an older car. Ask your agent or direct writing customer service professional which discounts are available to you.
The more people you allow to drive your vehicle on a regular basis, the greater the chances of your vehicle being in an accident. Teenagers are especially expensive to insure because they are the least experienced drivers. A driver’s-ed course can help ease the burden of insurance costs since it teaches your teenager defensive driving techniques. If your child’s high school does not offer drivers education, try to find one offered by another school or a private firm in the area. After all, the cost of driver’s-ed could be cheaper than the extra cost of your insurance. Many New Jersey insurers offer “good student” discounts as well. An adult’s driving experience can also affect your rates significantly. Don’t assume that every adult you know has been driving since age 16 or 17 or is a competent driver with a clean driving or insurance record.
Again, taking a defensive driving course is a good way for adults to prove they are also responsible drivers, thus lowering their risk and their “NJ car insurance premium rates”.