Article By NJ Criminal Lawyer, Jeffrey Hark, Esq.

 

NOT ENOUGH INSURANCE COVERAGE?

Greetings!

    I hope everyone is having a nice fall. In this issue of our internet mailer we are going to discuss one of the single biggest auto insurance problems NJ drivers are facing: not having enough coverage when being hit by a driver who has little or no car insurance.
    The key to understanding NJ's current auto insurance crisis stems from recent action taken by the NJ legislature. For years NJ law has required all NJ owners of auto to purchase car insurance. Recently, the legislature found many uninsured drivers on the road because they could not afford the high cost conventional auto insurance policies. As a result, the legislature created the "BASIC" or "Dollar a Day" auto policy. This limited insurance policy only provides coverage for emergency room care. There is NO coverage for liability when the policy owner causes an accident or if the "Basic" policy owner is struck by someone else with little or no coverage.  The "Basic" policy does hav any "PIP" or medical benefits for longer term medical treatment or UM/UIM coverage.
    The legislature has allowed this BASIC policy to satisfy NJ's compulsory insurance requirement when in reality, it is not insurance at all. This policy costs $365.00 per year.  If you are struck by a driver 'insured' with this BASIC policy you will surely not have adequate coverage to protect you and your family from personal injuries and the physical damages to your car. As a result, now is the time to look into your overall policy coverage and coverage limits and adjust them to protect your family.
    Many NJ drivers who purchase car insurance do not realize that the final cost or 'premium' can be adjusted based on the different areas of coverage purchased. The four primary areas of coverage are (a) liability, (b) PIP, (c) UM/UIM, and (d) the amounts of collision and comprehensive deductibles.
    For our discussion today, the most important part is the underinsured and uninsured coverage or UM/UIM coverage. This part of the auto insurance policy provides insurance to you when you are struck by another vehicle that has LESS insurance than you, or when you are struck by a person driving a car that has NO insurance or the 'BASIC' policy.  You have to review the coverage selection form you receive with your policy renewal information so tyou can study the additional cost of increasing your liability coverage and UM/UIM coverage. If you are able to afford it, I strongly recommend coverage limits not less than $100,000.00/$300,000.00 for liability and UM/UIM coverage. DO NOT PURCHASE LESS UM/UIM COVERAGE THAN YOUR LIABILITY COVERAGE LIMITS. (YOU ARE PROHIBITED FROM PURCHASING GREATER UM/UIM COVERAGE THAN YOUR LIABILITY COVERAGE)
    These are complicated issues that can not fully be outlined here.  PLEASE CALL OUR OFFICE ANYTIME OR EMAIL ME AND I WILL EXPLAIN EVERYTHING IN GREATER DETAIL.