Options Under the Standard Policy

In New Jersey, under the standard policy, there are additional kinds of insurance coverages for an automobile. These coverages are optional and are not required by law.

Collision coverage pays for damage to a policyholder's car from an accident regardless of who is at fault. Policyholders may choose not to buy collision coverage if the car is older, especially if the car is worth less than $1,000 because any claim they might make would not substantially exceed their premium or deductible amounts. The basic deductible for collision insurance is $500, but lower deductibles are also available for a higher premium.

Collision coverage is not required by state law, but may be required by a car leasing agreement or financing plan.

Comprehensive coverage reimburses a consumer if their car is stolen or damaged by vandalism, fire, flood, animals, or flying rocks or debris. Just like collision coverage, they may not want to buy comprehensive coverage if they have an older car. And again, the standard deductible is $500 with lower deductibles available for a higher premium.

Comprehensive coverage is not required by state law, but may be required by a car leasing agreement or financing plan.

The coverage choices made by a policyholder apply to all persons covered under the policy. However, a policyholder can choose to exclude certain drivers on their policy from being covered by collision and/or comprehensive coverage on a specific automobile that they do not drive. This means that if the excluded driver operates the automobile and is involved in a loss, the policy will not cover any damages to the insured vehicle.

See Also:
Coverages Required By Law
Other Standard Policy Choices