THREE WORDS OF ADVICE WHEN IT COMES TO RENEWING YOUR CAR INSURANCE:
BASIC IS BAD
(This article may not be copied or
reposted without express consent of Andrew S. Prince.)
The new auto insurance law has made significant changes to your coverage and we have
some critical consumer tips, which we believe will protect you and your family. Please
print and save this information. Put it with your insurance papers so that when the time
comes for your policy renewal, you can review these suggestions.
1. NEVER SELECT THE "BASIC POLICY"
Auto insurance companies will offer a "basic policy" which only provides
limited medical coverage and minimal liability coverage. No individual or family with any
assets or income should buy such a policy. With the "basic policy", you can be
sued. If successful, a judgment can dramatically affect your financial future, your credit
rating and even your ability to own or drive a car.
2. GET THE HIGHEST UNINSURED/UNDERINSURED COVERAGE
Uninsured/underinsured coverage protects you and your family if you are hit by a poorly
insured driver. This coverage is critical! Remember, some drivers will continue to go
without insurance, only have a small amount of insurance, or will elect the new
"basic policy." You need the highest uninsured/underinsured (UI/UIM) coverage
possible. This is relatively inexpensive and can be made as high as your liability
coverage.
3. GET GOOD LIABILITY PROTECTION
Liability insurance is what protects your family and assets in the event you are
charged with causing an accident. High liability protection can help assure you won't be
financially stripped. We recommend that you purchase no less than $100,000 bodily injury
liability and uninsured/underinsured coverage. You can go up to $500,000 and anywhere in
between.
4. ON THE LAWSUIT LIMITATION OPTION
The new law continues to offer the option of giving up your rights to the court system
in the event of an injury, in exchange for a reduction in insurance premiums. Without
those rights, though, even a prolonged and fairly serious injury may not be compensated.
Weigh whether the cost savings offered is worth giving up your or your family's ability to
be fairly compensated in some circumstances if an accident resulting in injury should
happen. We recommend that, if at all possible, you purchase the No Limitation on Lawsuit
Option (zero threshold).
5. ON PERSONAL INJURY PROTECTION (PIP) OPTIONS AND MEDICAL COVERAGE
The new law allows many different options regarding medical coverage. You want to
maintain your right to choose your own doctor. Do not choose, any plan requiring
"precertification of all treatment" by an insurance company. Choose
$250,000 PIP coverage, since many private health plans exclude treatment for auto injuries
or require repayment to them from any compensation awarded to you.
The new law is complicated! If you need guidance when your policy comes up for renewal,
I will be happy to provide that free-of-charge. Call I-800-WHEEL-02 or (732) 549-9700.
Two Wheel Legal Services
Fighting Hard for New Jersey Bikers!
1-800-WHEEL-02
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