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What are the Types of Policies?
There are two common types of auto insurance policies in New Jersey — they are referred to as Standard and Basic. Both offer options as well. The chart on page 7 compares the differences between the policies.
Standard Policy — The Standard Policy provides a number of different coverage options and the opportunity to buy additional protection. Most New Jersey drivers choose this policy.
Things to note if you choose the Standard Policy:
· Even if you choose one of the lower PIP limits, you will be covered for medically necessary treatment up to $250,000 for permanent or significant brain injury, spinal cord injury or disfigurement or for medically necessary treatment of other permanent or significant injuries rendered at a trauma center or hospital immediately following an accident and until you no longer require critical care, regardless of your selected limit. Amounts paid under the permanent or significant PIP provision will be applied to and will reduce any amount payable under the lower PIP limit chosen.
· A minimum amount of Uninsured/Underinsured Motorist coverage is required. You can purchase higher limits if you want more coverage, but cannot exceed your primary liability limits.
· Comprehensive and Collision coverages are available as options of the Standard Policy. (Some insurers may provide these options in the Basic Policy.)
Basic Policy — The Basic Policy usually costs less than a Standard Policy, but provides limited benefits. It is not for everyone, but it does provide enough coverage to meet the minimum insurance requirements of New Jersey law. The Basic Policy could be an option for those with few family responsibilities and few assets to protect (including income from a job).
What is the SAIP?
For Federal |
| The Special Automobile Insurance Policy (SAIP) is a new initiative to help make limited auto insurance coverage available to drivers who are eligible for Federal Medicaid with hospitalization. Such drivers can obtain a medical coverage-only policy at a cost of $365 a year. For more information, ask your agent or call the New Jersey Department of Banking and Insurance at 1-800-446-7467. |
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