There are five things you need to know before you buy car insurance.
Did you know that New Jersey drivers have had to have at least a basic insurance policy since 1998?
Driving without insurance is against the law in New Jersey. If you get caught, you could have to pay expensive fines, have your licence taken away, or even go to jail. If you don't know the basics about your car insurance, it can hurt you, whether you live there or are just visiting. So, if you're thinking of going to the Garden State soon, keep reading!
Auto insurance in New Jersey is thought to be the most expensive in the city. This is because the state has a "no-fault" policy, which means that your car insurance company will pay for your medical bills, lost wages, and property damage, no matter who was at fault. Through the Automobile Insurance Cost Reduction Act of 1998, people can now buy the basic policy, which covers damages up to $5,000 and medical costs up to $15,000. If you get into an accident with a driver who doesn't have insurance or whose insurance isn't as good as yours, your insurance company isn't responsible.
Now, car insurance in New Jersey varies not only in price but also in what it covers. There are a few things you need to know before you get quotes for car insurance. The New Jersey Banking and Insurance Department has put together a guide for drivers who need to renew their insurance or buy a new policy.
- Know what you want.
You also need to think about whether you rent out your home or have assets you want to protect. You should ask your life insurance company if they cover injuries caused by accidents or if you need to get a separate policy for that. Aside from this, you'll need to know how much insurance you can afford, since you'll have to pay premiums at least once a month.
- Know what you can do.
When you're looking for auto insurance, it's important to know the terms that insurance companies use. Most of the time, the terms are the same, so you should ask your agent or write down the ones you don't understand and look them up on the internet when you get home.
- Know how consumers are protected.
You have rights as a consumer, like the right to fair and equal treatment and the right to get the information you need to make smart choices. You should make sure you understand why one policy is better than the other, and you can also ask about your other choices.
You have the right to buy insurance, and if you are turned down for coverage, the insurance company needs to tell you why. The state of New Jersey gives people good reasons why they shouldn't get coverage.
You should also know that you can change or cancel your insurance policy at any time, even if it's not time to renew it yet. If you find cheaper car insurance in New Jersey, you can cancel your old policy and get a refund for the premium you paid but didn't use.
- Know what you have to do as a driver in New Jersey.
As the old saying goes, "with great power comes great responsibility." As a consumer, you have a lot of rights, but you also have responsibilities. To keep your auto insurance, you need to make sure that all of your premiums are paid and that you follow the state's traffic and driving rules.
