Motor vehicle insurance policies in New Jersey fall into two categories: standard and basic. Basic policies are generally less expensive but provide less protection and limit the rights of policyholders. Most drivers in New Jersey choose the standard policy. So what’s the difference?
The standard policy offers coverage for bodily injury, property damage, personal injury protection, and uninsured or underinsured motorists. The basic policy includes a minimum level of protection for property damage, as well as some PIP, with limitations, but it carries no bodily injury protection and no coverage for uninsured or underinsured motorists. Collision and comprehensive are available as an option with both types of policies.
The most significant difference between the two types of policies deals with the rights of policyholders when damages from an accident exceed the policy limits of their PIP. Basic policies come with a “limited right to sue” clause, which prohibits the policyholder from suing the at-fault party for pain and suffering caused by the accident unless they have one of the following injuries:
The standard policy gives the policyholder the option to choose either a “limited right to sue” or an “unlimited right to sue.” If the policy contains an unlimited right to sue clause, the policyholder may sue the at-fault party for losses exceeding their PIP limits for any type of injury suffered.
At the office of Howard N. Sobel, we have extensive experience protecting the rights of people injured in New Jersey motor vehicle accidents. Contact our office online or call us at 856-424-6400 to set up a free initial consultation. Evening and weekend appointments can be arranged upon request. We accept all major credit cards.
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