New Jersey requires that all car owners have auto insurance coverage. There are stated minimums for amount of coverage required. The minimum amount of coverage is called the basic insurance policy. An insurance card must be in the car at all times. Driving an uninsured car can result in license suspension, fines and insurance surcharges. Auto insurance in New Jersey key terms will provide you with the definitions and explanations for the major vocabulary related to auto insurance requirements in New Jersey.
Basic and standard insurance
New Jersey has two types of insurance. The first kind is the "basic" policy, which is the minimum amount of auto insurance allowed by the state. It covers property damage liability and personal injury protection. "Standard" insurance covers bodily injury liability, property damage liability, uninsured/underinsured motorist bodily injury, uninsured motorist property damage and personal injury protection.
Mandatory insurance inspection
New Jersey law requires that an automobile be inspected for insurance in order to avoid fraud by claiming that it was in better shape than it was before an accident. This inspection is separate from a motor vehicle inspection.
Property damage liability (PDL) insurance
Property damage liability (PDL) refers to insurance that covers damage done to another car in an accident.
Personal injury protection (PIP) insurance
Personal injury protection, or PIP, covers expenses no matter who was at fault. It covers injuries, as well as funerals, lost wages or types of losses due to a car accident.
Uninsured motorist insurance
Uninsured motorist insurance provides coverage to you if you are in an accident with an uninsured driver or if you're a victim of a hit and run accident.
Special automobile insurance policy
New Jersey implemented an insurance program for people on Medicaid with hospitalization. People who qualify can obtain auto insurance for the cost of a dollar per day.