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New Jersey Auto Insurance Liability Coverages
Mandatory New Jersey Liability Coverages
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New Jersey Tort Options
The right to recover damages is legally known as tort options. The state of New Jersey requires
you to select one of the following tort options to define your right to compensation in the event
that another party injures you or members of your household in an auto accident:
- Limited Right to Recover Damages (Limited Tort)
If you select the limited tort option, your rights to financial compensation for injuries caused
by other drivers will be limited. However, your premiums for property damage liability, Full First
Party Benefits (FPB), and FPB income loss coverages will be lower than if you had selected full
tort. Under the limited tort option, you (the insured) and other resident relatives are entitled
to recover damages for medical and other out-of-pocket expenses related to a covered accident.
However, you will not be eligible for financial compensation for pain and suffering or other
non-monetary damages, unless your injuries are categorized as serious (e.g., a life-long
disability, an injury resulting in death, etc.).
- Full Right to Recover Damages (Full Tort)
If you choose the full tort option, your rights to financial compensation for injuries caused by
other drivers is unrestricted. However, your auto insurance premium will not be reduced. Under the
full tort option, you (the insured) and other members of your household may seek recovery for all
medical and out-of-pocket expenses. You are also allowed to seek financial compensation for pain
and suffering and other non-monetary damages for injuries caused by other drivers in a covered
accident.
Bodily Injury
If the policyholder or another driver covered by the New Jersey policy is found to be at fault in an
accident resulting in injuries or fatalities, the following is covered under bodily injury coverage:
- Medical expenses
- Lost wages
- Pain and suffering
- Legal defense if the drivers listed on the policy are involved in a lawsuit resulting from a
car accident
Who's covered?
Bodily injury coverage pays for damages caused to a third party.
How much protection does this coverage provide?
The dual coverage limits you select in your New Jersey auto insurance quote refer to the maximum
amounts that will be paid per person, per incident, respectively.
Property Damage
If you or another covered driver is found to be at fault in an accident, the following is covered
under property damage coverage:
- Damage to another person's property (e.g., fence, car, or home)
- Legal costs associated with a damage incident
How much protection does this coverage provide?
The coverage limits you set in your auto insurance quote refer to the maximum amounts that will be paid
per accident.
Personal Injury Protection (PIP)
If you’re insuring multiple cars, the coverage you select will apply to each car.
PIP covers your reasonable expenses if you or your passengers are injured in an auto accident, regardless
of fault. You may choose from 4 types of PIP coverage. All 4 include medical coverage, as either primary
(options 1 & 2) or secondary (options 3 & 4) coverage. Medical expenses may include medical and surgical
treatment; dental and optometric treatment; ambulance and nursing services; necessary medications,
medical supplies, and prosthetic devices. The 4 options are:
- Full PIP Primary— acts as the primary coverage for injuries sustained by you or your
passengers in an auto accident. This option also covers income continuation, funeral expenses, death
benefits, and essential services expenses, as detailed below.
- Full PIP Health Primary— should be purchased if another health insurance provider acts as
the primary coverage for injuries sustained by you or your passengers in an auto accident. This option
also covers income continuation, funeral expenses, death benefits, and essential services expenses, as
detailed below.
- Medical Only PIP Primary—acts as the primary coverage for injuries sustained by you or your
passengers in an auto accident.
- Medical Only Health Primary— should be purchased if another health insurance provider acts
as the primary coverage for injuries sustained by you or your passengers in an auto accident.
Additional coverage included in Full PIP (options 1 & 2 above):
- Income continuation— If a covered individual is unable to work, PIP will help pay for income
compensation.
- Funeral expenses— If a covered individual dies from accident related injuries, PIP will pay a
maximum of $1,000 towards funeral expenses.
- Death benefits— If a covered individual dies from accident-related injuries, PIP will pay the
insured’s designated beneficiary $5,200 less any income continuation benefits paid to the income
producer before death.
- Essential service expenses— Should you or your passengers need help performing household or other
tasks due to accident-related injuries, PIP also helps pay for such substitute services. Payments are
limited to $12 per person, per day for up to a maximum of $4,380.
Who’s covered?
PIP covers policyholders, resident relatives of the policyholder, and authorized drivers and passengers
in the insured vehicle who are residents of New Jersey.
How much protection does this coverage provide?
The coverage limit you set in your New Jersey auto insurance quote refers to the maximum amount that
will be paid per accident.
When you purchase PIP coverage, you’ll need to select a deductible. You are responsible for paying the
deductible amount in the event of an auto insurance claim.
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Optional New Jersey Liability Coverages
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Extended Medical Coverage
Extended Medical Coverage pays for medical and dental treatment, hospitalization, professional nursing
services, prostheses, and funeral expenses if a covered driver and/or accompanying passengers are
injured while in an insured vehicle, regardless of who is at fault in the accident.
Extended Medical Coverage may also cover policyholders and their family members when they’re injured
while riding in someone else's car or if a car hits them while on foot or bicycling.
If you and your regular passengers already have health insurance that covers similar expenses,
extended medical coverage may be unnecessary. Check your New Jersey health insurance policy for
details.
The coverage limit refers to the maximum amount that will be paid per person, per
accident.
Additional Personal Injury Protection (APIP)
If you select this coverage and you have multiple cars, the coverage you select will apply to each car.
APIP acts as a supplement to the PIP coverage required by your state. It is only available when
you purchase Full PIP Primary coverage or Full PIP Health Primary coverage. APIP includes:
- Income continuation— You can select one of sixteen levels of APIP, which supplement the PIP
coverage required by your state. These levels refer to the amount of Income Continuation you will
receive per week and the maximum amount that will be paid, respectively.
- Funeral expenses— If a covered individual dies from accident related injuries, APIP will pay a
maximum of $2,000 towards funeral expenses.
- Death benefits— If a covered individual dies from accident-related injuries, APIP will pay the
insured’s designated beneficiary $10,000 less any Income Continuation Benefits paid to the Income
Producer before death.
- Essential service expenses— Should you or your passengers need help performing household or other
tasks due to accident-related injuries, APIP also helps pay for such substitute services. For all
selections except 100/10,400, APIP pays $20/day for up to a maximum of $14,600. If you select
100/10,400, APIP pays $12/day for up to a maximum of $8,760.
Who's covered?
You can select APIP for the insured only, or for the insured and relatives of the insured who do not
have their own auto insurance policy.
Uninsured/Underinsured Motorist Bodily Injury
If you choose to have uninsured/underinsured motorist bodily injury on your New Jersey policy and
you want it to apply to multiple cars, you must select the same limit for each car. Also, the limits
you choose must be less than, or equal to, your bodily injury limits. If they’re less than your bodily
injury limits, you’ll need to sign off in writing. Esurance will send you the necessary forms with
your New Jersey policy documents.
If the covered individuals are injured in an accident caused by a driver who has no auto insurance
or insufficient coverage, entitled compensatory damages will be covered.
Uninsured/underinsured motorist bodily injury provides coverage to the policyholder, authorized
policy members, and passengers.
How much protection does this coverage provide?
The dual coverage limits you see in your New Jersey auto insurance quote refer to the maximum amount
that will be paid per person, per incident, respectively.
If the other driver is uninsured, this coverage can generally pay up to the limit you purchase. If the driver is underinsured, this coverage typically pays the difference between what’s covered by the other driver's insurance and what’s covered by your bodily injury coverage.
If the limits you purchase are lower than an accident's costs, you’ll be responsible for paying the amount
over your limits, unless you’re covered by health insurance.
Uninsured Motorist Property Damage
If you want to carry this coverage on multiple vehicles, the limits must be the same for each
vehicle.
Uninsured motorist property damage coverage protects a policyholder whose vehicle is damaged
in an accident involving a driver who has no insurance coverage.
How much protection does this coverage provide?
If the other driver involved in an accident is uninsured, this coverage pays up to the limit you
purchase. The coverage limits you see in your quote refer to the maximum amount that will be paid per
incident. Check your policy for specific details referring to any deductible for this coverage.
If you wish to decline this coverage, you’ll need to do so by signing a form, which Esurance
will send you with your policy documents.
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