Car Insurance Laws

Car Insurance Laws

11/15/11 2:20 PM

Kenneth Vercammen & Associates A Law Office with Experienced Attorneys for Your New Jersey Legal Needs 2053 Woodbridge Ave. Edison NJ 08817 732-572-0500 1-800-655-2977 Personal Injury and Criminal on Weekends 732-261-4005

Princeton Area 68 South Main St. Cranbury, NJ 08512

By Appointment Only Toll Free 800-655-2977

Car Insurance Laws

Search Website

In 1999, the State of New Jersey adopted the Automobile Insurance Cost Reduction Act. The statute was intended to reduce the cost of automobile insurance; however, that purpose was accomplished Kenneth Vercammen was the primarily by reducing the benefits available to Middlesex County Bar Municipal persons who are injured in automobile accidents.

Court Attorney of the Year This means less coverage to pay for medical treatment and less rights to recover monetary damages from careless drivers who cause accidents.

The following information is complements of ATLA FOR POTENTIAL CLIENTS TO and the attorneys that protect consumer rights.

CONTACT US DURING NON1. Q. What choices do I have when I purchase or renew my auto insurance policy?

A. You are required to elect either the standard policy or the basic policy.

BUSINESS HOURS, PLEASE FILL OUT THE FORM. Name:

Cell Phone:

2. Q. What is the basic policy?

E-Mail Address

A. The basic policy (also known as the mini-policy) provides only $5,000 of property damage liability coverage if someone makes a claim against you and $15,000 of medical expense benefits (up to $250,000 for catastrophic brain and spinal cord injuries) if you or a resident family member are injured. The basic policy does not provide coverage if you injure http://www.njlaws.com/car_insurance_laws.html?id=108&a=

If You Do Not Include a Complete EMail Address, Verizon will not Forward Your Contact Form to the Law Office.

Details of the Case

Page 1 of 9

Car Insurance Laws

someone else, however, you have the option of electing coverage in the amount of $10,000 for injury to one or more persons in the same accident if someone makes a claim against you. The basic policy does not provide any uninsured motorist coverage to protect you and your family if the careless driver who causes the accident is uninsured or is insured under a basic policy with no bodily injury liability coverage.

3. Q. If I elect the basic policy, will my insurance company hire an attorney to defend me if I am sued for damages by someone else who was injured?

11/15/11 2:20 PM

Agree By typing " agree" into the box you are confirming that you wish to send your information to the Law Office of Kenneth Vercammen

Change Image Write the characters in the image above Submit

Clear

A. If you elect a basic policy with no bodily injury liability coverage, your insurance company will not provide an attorney to represent you. If you are sued - even if you are not at fault for the accident - you will have to hire your Kenneth Vercammen was the own lawyer at great expense to defend you or else Middlesex County Bar Municipal you will risk the entry of a default judgment against Court Attorney of the Year you with the loss of your driver's license.

4. Q. Should I purchase the basic policy?

A. No. The basic policy does not provide adequate protection for your assets if you are sued nor adequate coverage for you or your family if you are injured by a careless driver. WE RECOMMEND THAT YOU DO NOT ELECT THE BASIC POLICY. 5. Q. What is the standard policy?

A. The standard policy provides liability coverage if someone makes a claim against you with minimum limits for bodily injury of $15,000 per person/ $30,000 per accident and property damage of $5,000. In addition, the standard policy provides uninsured motorist coverage with minimum limits of $15,000 per person/ $30,000 per accident if you or a resident member of your family is injured by a person who is uninsured or has no bodily injury liability coverage. WE RECOMMEND THAT YOU ELECT THE STANDARD POLICY. 6. Q. Does the standard policy provide for medical http://www.njlaws.com/car_insurance_laws.html?id=108&a=

Page 2 of 9

Car Insurance Laws

11/15/11 2:20 PM

expenses?

A. Yes. The standard policy provides personal injury protection (PIP) coverage which includes medical expenses up to $250,000 per person per accident.

You may elect to purchase less coverage in the amounts of $15/50/75/150,000; however, if you do, you may not have enough insurance to obtain all of the medical treatment you need or to pay for all of your medical bills. WE RECOMMEND THAT YOU PURCHASE $250,000 OF PIP MEDICAL EXPENSE COVERAGE. 7. Q. If I am injured, can I make a claim or file a lawsuit against the careless driver who caused the accident?

A. It depends on your policy and the nature of your injuries. If you purchase a standard policy, you are required to elect a tort option that will determine if you have the right to make a claim. You must elect either the limitation on lawsuit option or the no limitation on lawsuit option. If you purchase a basic policy, you are assigned the limitation on lawsuit option.

8. Q. What is the limitation on lawsuit option?

A. The lawsuit limitation option (also known as the verbal threshold) limits your legal rights to make a claim for monetary damages or to file a lawsuit against a careless driver unless you sustain one of the following types of injury.

Type 1 - Death Type 2 - Dismemberment Type 3 - Significant disfigurement or scarring Type 4 - Displaced fracture Type 5 - Loss of a fetus Type 6 - Permanent injury A permanent injury occurs when a body part has not and will not heal to function normally. WE RECOMMEND THAT YOU DO NOT ELECT THE LIMITATION ON LAWSUIT OPTION. 9. Q. What is the no limitation on lawsuit option? http://www.njlaws.com/car_insurance_laws.html?id=108&a=

Page 3 of 9

Car Insurance Laws

11/15/11 2:20 PM

A. The no limitation option (also known as no threshold) permits you to make a claim or to file a lawsuit against a careless driver for any and all personal injuries. WE RECOMMEND THAT YOU ELECT THE NO LIMITATION ON LAWSUIT OPTION. 10. Q. Who benefits if I purchase a basic policy or a standard policy with the lawsuit limitation option?

A. You will reduce the cost of your automobile insurance; however, you will be giving up insurance benefits and legal rights in order to save money. The careless drivers who cause accidents will benefit because they may have no legal responsibility for your pain and suffering. The insurance companies who provide coverage for careless drivers will benefit because they may not have to pay any monetary damages for your injuries.

11. Q. How can I protect myself and my family if we are sued?

A. A standard policy provides liability insurance with minimum limits of $15,000 per person/ $30,000 per accident if you or your family are sued; however you may purchase additional coverage to protect your assets.

12. Q. How can I protect myself and my family if we are injured by a careless driver who is uninsured or unidentified?

A. A standard policy automatically provides coverage for injuries caused by an uninsured or hit and-run driver in the amount of $15,000 per person/ $30,000 per accident; however, you may purchase additional coverage up to the amount of your liability coverage.

13. Q. How can I protect myself and my family if we are injured by a careless driver who is insured but does not have adequate coverage?

A. The amount of your recovery from a careless driver may be limited by the amount of liability http://www.njlaws.com/car_insurance_laws.html?id=108&a=

Page 4 of 9

Car Insurance Laws

11/15/11 2:20 PM

insurance purchased by that driver and by the owner of the vehicle; however, if you purchase a standard policy, you can purchase underinsured motorist coverage up to the amount of your liability coverage.

14. Q. How much coverage do you recommend?

A. Most people feel that the minimum limits of $15,000 per person/ $30,000 per accident are inadequate. Many people purchase additional coverage up to $100,000/300,000 or $250,000/500,000. We recommend that you purchase liability coverage with single limits of $500,000 or the highest limits that you can afford. In addition, you should purchase uninsured/underinsured motorist coverage with the same limits as your liability coverage.

15. Q. How do I choose the type of automobile insurance coverage that I want for myself and my family?

A. When you purchase or renew your policy, you will be provided with a coverage selection form. We recommend that you make the following selections: Standard policy - Yes Basic policy - No No limitation on lawsuit option - Yes Limitation on lawsuit option - No PIP medical expenses $250,000 - Yes PIP medical expenses $15,000/50,000/75,000/150,000 - No Uninsured/Underinsured - Yes, with same limits as liability coverage.

If you do not sign the coverage selection form, you will be assigned a standard policy with $250,000 of PIP medical expenses and the lawsuit limitation option.

16. Q. What happens if I do not purchase any automobile insurance?

http://www.njlaws.com/car_insurance_laws.html?id=108&a=

Page 5 of 9

Car Insurance Laws

11/15/11 2:20 PM

A. The law requires the owner of every motor vehicle to purchase insurance. If you do not purchase insurance, you will be subject to civil and criminal penalties. In addition if you are injured while operating an uninsured automobile, you will not be permitted to make a claim or file a lawsuit against the careless driver for economic or non economic loss, even if you were not at fault for the accident.

17. Q. Can I purchase other insurance protection in addition to automobile insurance?

A. Yes. You can purchase a personal catastrophe liability umbrella at a reasonable cost that will provide additional coverage if a claim is made against you or any resident family member for injuries sustained by another person anywhere in the world due to the operation of a motor vehicle or for any other reason. In addition, some companies offer umbrella policies that include uninsured/underinsured motorist coverage. WE RECOMMEND THAT YOU PURCHASE A PERSONAL CATASTROPHE LIABILITY UMBRELLA WITH LIMITS OF $1 MILLION. AUTOMOBILE INSURANCE CHECKLIST Since March 23, 1999, you will be faced with many new choices when you purchase or renew your automobile insurance policy. The failure to purchase the correct coverage will affect both your ability to receive medical care if you are injured in an automobile accident and your legal rights to receive monetary damages from the careless driver who caused the accident. We strongly recommend that you elect the following coverages to properly protect yourself and your family.

YES NO X Basic Policy (Absolutely Not) X Standard Policy X Liability Coverage (limits of at least $100,000) X Uninsured Motorist Coverage http://www.njlaws.com/car_insurance_laws.html?id=108&a=

Page 6 of 9

Car Insurance Laws

11/15/11 2:20 PM

(limits of at least $100,000) X Underinsured Motorist Coverage (limits of at least $100,000) X Pip Medical Expense Benefits ($250,000) X Pip Medical Expense Benefits (less than $250,000) X Pre-certification of Medical Treatment X No Limitation on Lawsuit Option X Limitation on Lawsuit Option WARNING: The basic policy provides no liability coverage if someone makes a claim against you and no uninsured motorist coverage if the careless driver who caused the accident has no insurance. If you are sued you will not have any insurance to pay a judgment against you, your insurance company will not assign a lawyer to represent you and you may lose your credit rating and your driver's license.

NEVER BUY A BASIC POLICY. SOURCE: ATLA- NJ We thank the Association of Trial Lawyers of America- NJ for providing this information to motorists in NJ. Please distribute this information to your friends.

Minimum Mandatory Fines, Points, Jail and Penalties Relating to Selected Motor Vehicle Offenses Receive free NJ Laws Email newsletter with current laws and cases GO

http://www.njlaws.com/car_insurance_laws.html?id=108&a=

Page 7 of 9

Car Insurance Laws

11/15/11 2:20 PM

Telephone Consultation Program

New Article of the Week

Meet with an experienced Attorney to handle your important legal needs.

Please call the office to schedule a confidential "in Office" consultation.

Attorneys are not permitted to provide legal advice by email.

Kenneth Vercammen's Law office represents individuals charged with criminal, drug offenses, and serious traffic violations throughout New Jersey.

Our office helps people with traffic/ municipal court tickets including drivers charged with Driving While Intoxicated, Refusal and Driving While Suspended.

Kenneth Vercammen was the NJ State Bar Municipal Court Attorney of the Year and past president of the Middlesex County Municipal Prosecutor's Association.

Criminal and Motor vehicle violations can cost you. You will have to pay fines in court or receive points on your drivers license. An accumulation of too many points, or certain moving violations may require you to pay expensive surcharges to the N.J. DMV [Division of Motor Vehicles] or have your license suspended. Don't give up! The Law Office of Kenneth Vercammen can provide experienced attorney representation for criminal motor vehicle violations.

When your job or driver's license is in jeopardy or you are facing thousands of dollars in fines, DMV surcharges and car insurance increases, you need excellent legal representation. The least expensive attorney is not always the answer. Schedule an appointment if you need experienced legal representation in a traffic/municipal court matter.

Our website provides information on traffic offenses we can be retained to represent people. Our website also provides details on jail terms for traffic violations and car insurance eligibility points. Car insurance companies increase rates or drop customers based on moving violations.

Contact the Law Office of Kenneth Vercammen & Associates, P.C. at 732-572-0500 for an appointment.

The Law Office cannot provide legal advice or answer legal questions over the phone or by email. Please call the Law office and schedule a confidential "in office" http://www.njlaws.com/car_insurance_laws.html?id=108&a=

Page 8 of 9

Car Insurance Laws

11/15/11 2:20 PM

consultation. The Law Office now accepts payment by American Express, Visa and Master Card. .

Disclaimer This web site is purely a public resource of general New Jersey information (intended, but not promised or guaranteed to be correct, complete, or up-to-date). It is not intended be a source of legal advice, do not rely on information at this site or others in place of the advice of competent counsel. The Law Office of Kenneth Vercammen complies with the New Jersey Rules of Professional Conduct. This web site is not sponsored or associated with any particular linked entity unless specifically stated. The existence of any particular link is simply intended to imply potential interest to the reader, inclusion of a link should not be construed as an endorsement. Š 2011 Kenneth Vercammen & Associates, P.C.

http://www.njlaws.com/car_insurance_laws.html?id=108&a=

Page 9 of 9