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HOW
MUCH AUTOMOBILE INSURANCE COVERAGE SHOULD I BUY, AND WHAT KIND OF POLICY
DO I NEED, TO PROTECT MY FAMILY?
Buying automobile insurance
can be confusing. Blume, Goldfaden offers these tips:
- Buy as much liability coverage
as you can reasonably afford.
Liability coverage is what your insurance company will pay to someone
else in the event that you are held responsible for an automobile accident.
Obviously insurance needs vary from person to person, but check with
your agent and make sure you purchase enough liability coverage to protect
your valuable assets in case you are sued.
Additional liability insurance
need not be costly. - Always buy uninsured/underinsured
motorist coverage equal to the amount of your liability coverage.
Uninsured motorist coverage
is paid to you by your automobile insurance company if you are injured
by an uninsured car or if you are a victim in a hit and run accident.
Underinsured motorist coverage
is paid to you by your insurance company if you are injured by a driver
who does not have sufficient coverage to pay for all of your injuries.
This coverage is also not costly.
- Effective March 22, 1999,
the New Jersey State legislature made vast and sweeping changes regarding
the types of automobile insurance policies available to you as a consumer.
Subsequent to March 22,
1999 once it is necessary for you to renew or purchase an automobile
policy there will be three types of automobile policies you can choose:
- a "mini policy"
- the "limitation on lawsuit"
policy
- the "no limitation on
lawsuit" policy
If you purchase a "mini
policy" you can choose liability limits between $0 and $10,000. The
mini policy basically prevents you from bringing a lawsuit in the
event you are injured as a result of an automobile accident even if
you are not at fault. You save a few dollars, but in the event of
serious injuries in an accident, you may lose a great deal of money
because you are prevented from going to court.
"Limitation on Lawsuit"
The limitation on lawsuit automobile insurance policy restricts a
your right to bring a lawsuit against someone what has injured you
or their insurance company unless you sustain one of six types of
injuries:
(a) death, dismemberment
or loss of a fetus
(b) a "significant disfigurement or significant scarring"
(c) a displaced fracture
(d) a permanent injury within a reasonably degree of medical probability
"No Limitation on Lawsuit" This automobile policy gives you the right
to bring a lawsuit against the other party to the accident and their
insurance company, regardless of the severity of the injury.
- We
recommend that when choosing your automobile insurance policy you should
purchase the "No Limitation on Lawsuit" option. This policy will protect
you and your family under any and all circumstances in which they may
be injured as a result of an automobile accident.
As the "Mini policy" and "Limitation on Lawsuit"
policies severely limit and sometimes prevent you from bringing a lawsuit
in the event of personal injury, you should consider what selecting
one of these types of policies, at minimal cost saving, does to your
ability to protect you and your family from serious injury. By making
the selection of the "Mini policy" or "Limitation on Lawsuit" policy,
you will significantly reduce your right to be compensated for injuries,
even when the other driver is totally at fault.
- If you choose
the "Mini policy" or "Limitation on Lawsuit" policy, you open up
the possibility of never having a jury hear your case. A Judge can
dismiss your case if the judge feels the injuries do not meet the
"threshold" injuries specified by the new Statute, thus taking away
your right to a jury trial.
- Similarly,
even if your case goes to jury trial, the jury can dismissal your
case at any time for the same reason. As a result, Blume, Goldfaden
anticipates that automobile insurance companies will not offer reasonable
settlements to individuals who have selected the "Limitation on
Lawsuit" option and the "Mini policy".
- By selecting
the "Mini policy" and/or the "Limitation on Lawsuit" policy, you
may be decreasing, if not eliminating, the possibility of obtaining
a relatively fast, out of court settlement. True, these types of
policies do afford some cost savings. However, these savings seem
to come at the "cost" of giving up legal protection for you and
your family. New Jersey drivers have a decision to make when choosing
automobile insurance policies for themselves and their families.
Think carefully before choosing because your decision determines
under what circumstances you and your family may or may not file
for financial compensation against a negligent driver. In the event
you wish to consult one of our attorneys regarding the best automobile
insurance policy for you and your family please call us to schedule
a free consultation at your convenience.
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