Elizabeth Car Insurance

Located near the major population hubs of New York City and the urban areas of Newark, Elizabeth,  New Jersey is a steadily growing city of over 125,000 people.

The business outlook is favorable due to the stability of city and county government regulation allowing reliable access to the needs of both small businesses and larger entities.

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Insurance is a vital portion of that stability because insurance allows individuals and businesses to invest in personal assets with the understanding that a certain amount of security will apply because of insurance.

When purchasing insurance to protect personal assets, a careful examination and understanding of the market is important.

Insurance in New Jersey

New Jersey, like most states, requires basic automobile insurance to drive in the state. New Jersey, however, has a unique approach to car insurance.

They have "Choice No-Fault" laws, which enable purchasers to opt for no-fault insurance or traditional insurance at the beginning of their insurance policies.

If the purchaser determines to purchase traditional insurance, he or she may sue the other driver for remediation for injury or death resulting from an automobile accident.

If opting for no-fault insurance lawsuits after an accident are limited to certain types of injuries: dismemberment, significant dismemberment or scarring, loss of a fetus, or permanent injury.

Limits of Liability Required in New Jersey

The state has two types of automobile insurance policies, the "basic plan", and the "standard plan". Under the Standard Plan, the following limits of liability are required:

• $5,000 per accident - property damage liability for damage to the property of others
• $15,000 per person per accident – for Personal Injury Protection (PIP) benefits
• $250,000 per person per accident – for PIP benefits for certain serious injuries such as brain or spinal cord accidents

The New Jersey state website has an automated tool to assist individuals in determining what coverage to purchase on the state website. The assisting tool can be confusing unless the individual has a solid knowledge of insurance. Relying upon a licensed insurance agent for this is much more reliable.

Recommended Limits of Liability

One of the provisions of PIP coverage in New Jersey is that the purchaser of the automobile insurance may choose to rely upon their own health insurance coverage for personal bodily injury resulting from an accident.

For that reason, it is necessary for New Jersey residents to be certain that their health insurance not lapse.

Carefully examine your own financial situation to determine how much protection you need to ensure your financial stability. The following coverage is recommended under the Standard Policy for the average individual, owning their own home as well as with a reasonable amount of savings and investments.

• Bodily Injury Liability ($100,000 per person/$500,000 per accident)
• Property Damage Liability ($50,000 or up to $100,000 per accident)
• Personal Injury Protection ($250,000)
• Uninsured/underinsured motorists coverage (must be up to the limits of bodily injury liability coverage purchased. This coverage must be offered by insurance companies)

Damage to Your Own Automobile

Liability coverage does not apply to your own vehicles. Automobiles are becoming a more valuable asset as prices increase and often they are used as collateral for loans to purchase the car. Protecting this investment is necessary by purchasing comprehensive and collision coverage.

A brief description of this coverage is:

• Comprehensive coverage – physical damage to your own car due to natural disasters, fire, riot, explosion, vandalism, theft, damage from animals such as deer, broken windows, and falling objects. Note that these perils are all not controlled by the person purchasing the insurance.
• Collision coverage – physical damage to your own car resulting from a crash with another vehicle or object. Note that these occur generally under the control of the driver, the person purchasing the insurance.

A deductible is applied to each of these types of insurance.

The deductible can vary from $250 per accident to over $1000 per accident.

The amount of the deductible will reduce the premiums, but can place you in difficulties in the event of an accident. Carefully weigh the costs of both and your ability to afford the deductible along with the incidental costs of an accident.

Once an automobile is a certain age, it may not be cost-effective to purchase physical damage to protect it because the amount recovered in an accident may not give a reasonable return on the investment of the premium money.

Obtaining Quotations on Auto Insurance

In New Jersey, because of the complexity of the no-fault insurance laws, it is wisest to consult with an insurance agent or agencies to obtain quotes. Insurance agents are required to pass examinations and obtain continuing education in their areas of expertise.

The Process of Getting Comparable Insurance Quotes:

Begin by talking with your friends, relatives, and co-workers about where they purchase their insurance.

Obtain recommendations and elicit complaints that they may have about service, claims histories, and premiums. From this information, choose at least three companies to consult about insurance premiums.

Examine the companies you choose for financial stability as well as records of complaints. There are a number of resources for this examination:

• The New Jersey Department of Insurance website
• National Association of Insurance Commissioners (NAIC)
• A. M. Best Rating Services
• Standard and Poor's Rating Services

Collect the information you will need to obtain a quote:

• Name, date of birth, drivers license number, and addresses for all drivers in the household (don't skip young drivers – you could invalidate your insurance)
• Driving record for all drivers – traffic violations, accidents, and claims
• Make, model, and VIN number for all owned vehicles
• Where your insurance has been purchased in the last three to five years
• If you've recently moved, your prior address

You can apply for quotations on-line or call agents to discuss quotations.

In consideration of the complexity of New Jersey insurance law, your best option would be to call a licensed agent in the area in which you live. Often agencies are able to provide comparable quotes without searching from place to place.

Saving Money on Car Insurance

• Keep driving records clean of accidents, suspensions, and motor vehicle violations
• Examine the cost of insurance before purchasing an automobile
• The insurance company's experiences in your area can affect the cost of car insurance
• Automobile usage and average mileage
• Keeping insurance in force without lapse can affect your desirability as an insured
• Approved driver education courses and/or approved defensive driving courses can improve your rates.

Several publications are available for download from the New Jersey Department of Insurance that will guide you to applications for automobile insurance.

Be certain to read your quotations and insurance policies carefully before purchasing insurance. If you have questions, ask them of your insurance agent. They have the expertise and training to help you adequately.

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