Protecting yourself and your family
It is important for you to understand the coverage options contained within the typical automobile insurance policy before you buy your insurance policy. All too often, our clients are not told about protections they could have purchased until after they have suffered harm in an auto accident.
You are required to fill out a Coverage Selection Form before you buy a policy. You should carefully review the form and consider the coverage options on the Coverage Selection Form that you receive when you purchase the policy and each time you renew the policy. (For information on New Jersey auto insurance requirements, click here).
If you buy your insurance at an insurance company’s agency, you are often not told about how to protect yourself from drivers who either have no insurance coverage (UM or uninsured motorists) or who do not have enough insurance to pay for the injury that they have caused you (UIM or underinsured motorists).
There are many drivers in New Jersey who are operating cars either without any insurance at all or who are minimally insured. The cost of increasing your coverage to secure increased protection in the event of injury may be minimal when compared to the cost you may incur if you are hurt by someone who has no insurance coverage or inadequate coverage to pay for your injuries.
Look closely at the premiums being charged for each type of coverage and explore where your money will provide you and your family with as much protection against uninsured and underinsured drivers that you can afford. For example, you may wish to consider paying a slightly higher premium to purchase increased UM or UIM coverage that protects you and your family in the event that you are injured and saving money by choosing a higher collision deductible ($1,000).
We often see clients who have purchased substantial liability coverage limits, but bought limited UM/UIM coverage. Insurance companies prefer that customers purchase minimal UM/UIM coverage so that the carrier is not at risk should you be injured by someone who does not have adequate coverage. Because of the difficult economic climate, people are often purchasing the minimal amount of insurance required. As such, there is an increased likelihood of being hit by someone with insufficient insurance coverage. It is important for you to consider insuring yourself and your family members with the best coverage you can afford.
If you are buying new insurance and filling out a Coverage Selection Form or have received one in the mail at the time of insurance coverage renewal, we urge you to read the Coverage Form and supporting documentation closely. For more information about your policy benefits and general terminology relating to personal injury, click here.