All states have their own laws regarding auto insurance, but New Jersey is among the few that can be considered truly unique. If you live in Newark, NJ or surrounding areas, you need to make sure you are appropriately covered. E.S.T.I.R. Inc. is therefore here to help you gain a better understanding of New Jersey’s tricky auto insurance laws. Here’s what you need to know:
New Jersey is a ‘Choice No Fault’ State
Whereas most states have "fault" laws where whoever is deemed liable for an accident has to pay for the damages and legal costs, a handful of others states have "no-fault" laws, where all drivers involved have to handle the costs. Then there are the rare few states like New Jersey, which have something called "choice no-fault" laws. Here you have the option of going with fault or no-fault insurance, also known as "full tort" or "limited tort insurance". With full tort, drivers can file suit against the at-fault driver and their insurance company, receiving full compensation for damages to their car, medical coverage, legal costs, etc. Essentially, there are far fewer limitations here. Limited tort insurance is meanwhile appealing to a lot of people because it is generally a lot less expensive, but with this policy they have very benefits. In the event of an accident, they file a claim with their own insurance provider (regardless of who was at fault) and may receive only bare minimum coverage.
Deciding Which Option is Best for You
Now, there are pros and cons to each option, and the right one for you will often depend on your amount of risk and financial worth. The important thing to know, however, is that the decision to go with either limited tort or full tort insurance must be made at the time that coverage is purchased (it cannot be changed after an accident). To learn more, contact E.S.T.I.R. Inc. (serving the Newark, NJ area and beyond) today.