How Much Auto Insurance Coverage Do I Need?

If you have faithfully been renewing your auto insurance premium — congratulations! However, at E.S.T.I.R. Inc. in Bloomfield, NJ, we have seen many clients walk away with uncovered expenses following an auto accident because they carry inadequate coverage. Given these ugly incidences, it’s time to step back and ask: how much auto insurance do I need? Establishing the right amount of auto insurance you need helps you plan before it’s too late. 

Here is a guide to help you establish the amount of auto insurance you need in New Jersey.

One that satisfies your state requirements

Most states require motorists to include certain coverages in their auto insurance. For instance, New Jersey requires all motorists to carry liability insurance and personal injury protection (PIP) coverage in their car insurance. For any motorist, this becomes the basis of determining the amount of auto insurance you need.

As a rule of thumb, meeting your state-required minimums is not negotiable. This compliance helps you avert penalties and fines for not carrying valid auto insurance. 

How much collision and comprehensive coverage do I need?

These coverages pay for repairs or replacement of your car when it’s physically damaged. But how much do you need? You need coverage that takes care of your damages after factoring in your deductibles.

How much liability insurance should I buy?

While meeting the state requirements is superb, you need to increase your liability coverage for optimal protection. The amount of liability insurance to buy is one that can comfortably cover your lawsuits. For instance, a 250/500/100 coverage would be better than the 15/30/5 required in New Jersey. However, if you need more coverage, umbrella insurance would be perfect for you.

How much Personal Injury Protection (PIP) coverage do I need?

Well, it depends on whether you have a health insurance plan. While in some states, it’s optional, PIP is mandatory in New Jersey. You can stick to the state-required minimum if you have a good health insurance plan. But considering PIP is a good thing since it offers additional perks compared to health insurance. For instance, it covers partial loss of wages. 

Still unsure of how much auto insurance you need in Bloomfield, NJ? Please contact E.S.T.I.R. Inc. for more information.

Why do people in New Jersey need home insurance?

Those that are in the Bloomfield, NJ area will have many housing options to consider. As you are looking for a new place to live, investing in your future and buying a home can be a great option. As you are looking for a home to buy, you also need to shop for a home insurance plan. A new home insurance policy in New Jersey could be needed for a few reasons. 

Coverage Provides Valued Protection

A reason that you will need to have home insurance here is because of the valued protection it provides. Your home is a major asset that will require you to make a big investment to purchase it. The best way that you can ensure this asset and investment will pay off is by getting the right insurance for it. Your home insurance plan will give the protection needed to cover your home. 

Coverage is Required

You should also get a home insurance plan in this area because it is likely going to be a requirement to carry coverage. A full home insurance plan is typically required by any mortgage provider. To ensure you do not have a coverage lapse, they may also require you to escrow your payments in an account each month. 

Homeownership continues to be a great housing option and goal for people in the Bloomfield, NJ area. As you are assessing your purchase options, you should also call E.S.T.I.R. Inc. to discuss your insurance needs. There are a lot of choices that come with picking a home insurance plan and E.S.T.I.R. Inc. can make the process easier for you. The team here can give you insight into your insurance options, which can help you build a plan that is ideal for your situation.