Why Is Car Insurance Required By Law - On August 5, 2022, New Jersey Governor Phil Murphy signed into law bill S-481, which increases minimum auto insurance coverage. According to a New Jersey auto accident attorney, this is the first increase in motor vehicle coverage minimums since they were first established 50 years ago. This long overdue increase will help car accident victims claim adequate monetary compensation for car accident damages.
The new law requires the standard auto insurance policy to cover $25,000 of bodily injury for a single person involved in an accident for plans renewed on or after January 1, 2023. After January 1, 2026, the minimum coverage for one person in an accident will increases to $35,000.
Why Is Car Insurance Required By Law
The legislation also increases the minimum coverage for accidents that cause injury to more than one person to $35,000 on or after January 1, 2023. That coverage increases to $70,000 starting January 1, 2026.
What Does Full Coverage Car Insurance Cover?
In addition, the law increases the minimum coverage for property damage caused by a motor vehicle accident to $25,000 effective January 1, 2023. There is no longer an adjustment to the minimum coverage for property damage included in the legislation.
Purchasing a standard New Jersey auto insurance policy means making certain coverage decisions. These choices affect the price of your insurance and what damages will be paid in the event of an accident. According to a New Jersey car accident attorney, one of the most important decisions you can make involves your right to sue after a car accident.
There are important differences between selecting an unlimited and limited indemnity option in your auto insurance policy.
An unlimited right to sue allows you to maintain your right to sue the person responsible for the car accident for pain and suffering for any injuries sustained in the accident.
Automobile Insurance 101
However, a limited liability to sue greatly limits your ability to hold negligent parties accountable after a car accident. Under the limited action option, you can ONLY sue for pain and suffering under certain circumstances listed below where you have suffered permanent injury:
If you choose a Limited Right to Sue policy, you will still be able to claim medical expenses and some economic losses within your policy limits. A New Jersey auto accident attorney recommends that you have as much insurance as you can afford and retain your full rights regarding your ability to sue. Selecting a limited liability option can reduce your ability to recover financial compensation for your losses. No one expects to be involved in a serious car accident, but effective planning with your insurance policy can help you recover financially when when tragedy strikes.
New Jersey drivers have the option of selecting auto insurance coverage. Consumers who select basic insurance have very limited options for recovering damages after a motor vehicle accident. Basic coverage usually has less expensive premiums than standard insurance. However, the consequences of driving with such low coverage can be significant and very difficult to afford. Under basic insurance, consumers have few options for suing another driver after a car accident. A New Jersey auto accident attorney encourages consumers to consider all the implications for basic insurance before selecting this option.
The aggressive litigators at the Wieand Law Firm have years of experience fighting insurance companies to ensure you receive the best possible compensation after a car accident. We strive for exceptional customer care, vigorously advocating for our clients when insurance adjusters deny or reject a claim.
How To Reduce The Cost Of Your Auto Insurance
Call today to receive a free consultation at your request. We understand that recovering from a car accident can be physically and financially demanding. We can help you recover by understanding the legal options available to you and seeking compensation for your losses. Call 215-666-7777 today or send us a message through our online form to speak directly with an attorney. Most states require drivers to provide proof of coverage. To make sure you have the right documentation when you get behind the wheel, here's what you need to know about proof of insurance.
Uninsured drivers are a major problem in the United States, where it is estimated that nearly 13% of drivers do not have insurance. If you are hit by an uninsured driver, you may be on the hook for your own hospital bills and auto repair costs. The likelihood of this happening varies by state. For example, estimates of uninsured drivers range from 3.5% (Massachusetts) to 29.4% (Mississippi).
To try to reduce the number of uninsured drivers, 49 states require drivers to carry at least a certain minimum amount of liability for bodily injury and property damage. It can pay the other driver's medical bills, vehicle repair costs and other expenses if the insurer is found at fault in an accident.
In Ohio, for example, drivers must carry a minimum of $25,000 in personal injury coverage, $50,000 in accidental injury coverage, and $25,000 in property damage coverage. This is expressed in an insurance policy as 25/50/25. Drivers can purchase more than the minimum liability coverage if they want, and this is often a good idea if they have significant assets to protect in the event of a lawsuit.
Factors Affecting Car Insurance Premiums
Some states also require drivers to carry other types of insurance, such as medical payments coverage or personal injury protection, which can cover injuries to the insured and any passengers.
New Hampshire is the only state that does not require drivers to purchase auto insurance, although it strongly recommends it.
To demonstrate that you comply with your state's laws, you must carry proof of insurance with you every time you get behind the wheel. If you are stopped by the police, they may ask to see your proof of insurance along with your license and registration. You also need it if you ever have an accident.
Proof of insurance can be in the form of an insurance ID card or other document from your insurance company. To meet proof of insurance requirements, your ID card or form must show the policy number, policy effective dates, covered vehicle and insurer name.
How Proof Of Insurance Works And Why You Need It
In addition to standard proof of insurance, some drivers require an SR-22 form, also known as a certificate of financial responsibility. In Virginia and Florida, the form is known as FR-44.
For example, you may be ordered by the state or a judge to get an SR-22 if you have been convicted of DUI or DWI, received multiple speeding tickets in a short period of time, or have a affected.
The SR-22 is not a separate insurance policy. It is a form that must be filed with your state to show that you meet the minimum auto liability requirements.
Your insurance company usually files the SR-22 form for you electronically, although in some cases it may be sent by mail.
What Determines Your Auto Insurance Rate
When you buy a car insurance policy, the insurance company will immediately send you proof of insurance. You may also be able to download a temporary insurance card to use until the paper copy arrives.
You will receive a new insurance card each time you renew your policy or each time you change your cover. When you get a new insurance card, remove and discard the old card and put the new one in the vehicle so you can prove your insurance is up to date. You may also want to take a photo or photocopy of the last card and keep it outside the car just in case.
In most states, proof of insurance is also available electronically. So if you're pulled over by law enforcement, you can show them a digital insurance card on your smartphone.
If you lose your insurance card and need to get proof of insurance, you have a few options:
How To Navigate A Car Insurance Policy
If you are stopped by the police and you do not have proof of insurance, then the officer may write a ticket. Depending on your state, you may be subject to fines and other penalties.
For details, visit the State Department of Motor Vehicles website for information on minimum insurance requirements and penalties for no proof of insurance.
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Florida Auto Insurance Fort Myers, Fl
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