N.J. Basic and Standard Automobile Insurance Policies
Every owner of an “automobile” registered or principally garaged in N.J. is required to maintain automobile insurance. This insurance must include liability coverage , insuring against loss resulting from liability imposed by law for bodily injury, death and property damage sustained by any person arising out of the ownership, maintenance, operation or use of an automobile; and personal injury protection coverage (“PIP”).
PIP coverage includes:
- Payment of medical expense benefits
- Income continuation benefits
- Essential services benefits
- Death benefits
- Funeral expenses benefits
For a detailed description of what each of the above benefits includes, please see N.J.S.A. 39:6A-4: PIP BENEFITS
The difference between the Basic and Standard automobile insurance policies
The price of coverage, and the amount of coverage available to a named insured and resident relatives living in household of the named insured. In other words, you are charged a higher premium for the Standard auto policy; and get a bigger bang for more bucks.
The Basic policy provides less coverage than a Standard policy. N.J.S.A. 39:6A-3.1 contains a description of all the benefits available under a Basic auto insurance policy.
The benefits available to the named insured and resident relatives of the named insured, living in the named-insured’s household in a Standard policy are set forth in N.J.S.A. 39:6A-4
There are a myriad of choices for automobile insurance consumers to make. It is very difficult to get what you expect without an advanced degree in auto insuranceology. Whether you choose the Geico Gekko, the State Farm instant agent, or to be in good hands with All State, it is critical you understand your options, and the consequence of each choice you make.