Does Your Insurance Protect You in a Crash if the At-Fault Driver Has a Basic Policy?
Posted on behalf of James Lynch on August 16, 2023 in Car Accident News. Updated on November 15, 2023
In New Jersey, drivers may choose something called a Basic Policy. Those who choose a Basic policy have NO mandatory coverage for injuries they cause you if they hurt you or your family in a car accident. The Department of Insurance and Banking tells us on its website that these insurance policies are really made for NJ Citizens with little to no assets:
“The Basic Policy should be considered by those with few family responsibilities and few real assets. It can provide a transition for younger drivers who are just beginning work, providing basic, minimum protection when they may be least able to afford more comprehensive coverage.“
https://www.state.nj.us/dobi/division_consumers/insurance/basicpolicy.shtml
So, what NJ is really telling you is that there are many people driving on our NJ roads: (1) who have no insurance to pay you damages if they hurt you, or even cause your death and (2) likely have no money to pay your damages. This is chilling.
A drunk driver can run you over in a crosswalk, cause you to lose your leg, and you get nothing for what you have lost? Maybe. However, there is a way to protect you and your family.
NJ makes insurance companies sell a piece of auto insurance called Underinsured/Uninsured Motorist coverage, also known as UM/UIM coverage. It sounds complicated, but it’s not, and it’s cheap. Basically, this coverage steps into the shoes of that driver who has no coverage to protect YOU. If that driver had zero coverage and hurt you in an accident and you had $300,000 of UM/UIM coverage through your auto policy – you could collect up to $300,000 for your injuries. Essentially, having this coverage means if YOU are in an accident, you can have the peace of mind that you have you have at least your UM/UIM limit for EVERY SINGLE DRIVER on our NJ roads that could hurt you.
We can’t tell you how many times people have come into our law firm and said things like, “My daughter is scarred for life, she did nothing wrong, the other driver just rear-ended her when she was stopped, how is it possible that there is no money to help compensate her for what she has lost.” It is a sad conversation we never like having.
When you renew your insurance, please consider purchasing UM/UIM coverage. You may be thankful you did.
If you ever have a question about insurance, an accident, what your rights are or anything like that, please give us a call. We are really here to help. I have posted a page from the NJ Department of Insurance and Banking about insurance limits in NJ. It has some good information.
Thanks, Jim Lynch
The chart below compares the differences between Standard and Basic policies and explains the amounts of coverage you may be able to purchase from an insurer. This information was taken directly from the New Jersey Department of Insurance and Banking website.
https://www.state.nj.us/dobi/division_consumers/insurance/basicpolicy.shtml
| Type of Coverage | Standard Policy | Basic Policy |
|---|---|---|
| Bodily Injury Liability Coverage for claims and lawsuits by people injured as a result of an auto accident you cause |
As low as: $25,000 per person, $50,000 per accident
As high as: $250,000 per person, $500,000 per accident |
Coverage is not included but $10,000 coverage for all persons, per accident, is available as an option |
| Property Damage Liability Coverage for claims and lawsuits by people whose property is damaged as a result of an auto accident you cause |
As low as: $25,000 per accident
As high as: $100,000 or more |
$5,000 per accident |
| Personal Injury Protection Coverage for injuries sustained in an automobile accident by you or other persons covered under your policy |
As low as: $15,000 per person or accident
As high as: $250,000 or more Up to $250,000 for certain injuries* regardless of selected limit |
$15,000 per person, per accident
Up to $250,000 for certain injuries* |
| Uninsured/Underinsured Motorist Coverage Coverage pays for property damage or bodily injury if you are in an accident caused by an uninsured motorist (a driver who does not have the minimum level of insurance required by law) or a driver who is insured, but who has less coverage than your underinsured motorist coverage |
Coverage is available up to amounts selected for liability coverage | None |
| Collision Coverage Coverage for damage to your vehicle as the result of a collision with another car or other object |
Available as an option | Available as an option (from some insurers) |
| Comprehensive Coverage Coverage for damage to your vehicle that is not a result of a collision, such as theft of your car, vandalism, flooding, fire or a broken windshield. Comprehensive coverage also pays if you collide with an animal. |
Available as an option | Available as an option (from some insurers) |
| *permanent or significant brain injury, spinal cord injury or disfigurement or for medically necessary treatment of other permanent or significant injuries rendered at a trauma center or acute care hospital immediately following an accident and until the patient is stable, no longer requires critical care and can be transferred to another facility in the judgment of the physician. | ||
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