18 Feb BEWARE THE BASIC AUTOMOBILE INSURANCE POLICY
In 1998 the New Jersey legislature amended the automobile insurance laws to reduce the cost of insurance. This “reform” actually deformed the laws and now people can purchase dollar-a-day insurance policies that provide virtually no coverage.
These dollar-a-day policies, aka, basic policies and special policies, generally provide no bodily injury liability coverage. They also provide no uninsured and under-insured motorist coverage. They may provide very limited Personal Injury Protection (PIP) medical coverage. They have other limitations as well.
Special policies may provide no property damage liability coverage.
If two vehicles insured with dollar-a-day policies collide there is, essentially, no way that anyone can recover for their pain and suffering. The exception would be if one of the occupants had their own personal or family coverage.
If your vehicle is hit by a special policy without property damage liability coverage you may not be able to get the responsible vehicle’s insurance company to pay for your property damage.
This is a regrettable situation. It allows financially irresponsible people to share the same roads as financially responsible people. Dollar-a-day coverage is pretty similar to having no coverage, except that dollar-a-day coverage is lawful and having no insurance coverage is unlawful.
In order to avoid problems with dollar-a-day vehicles out on our roads you would be wise to purchase proper insurance coverage for you and your family. Due to the possibility that you can be hit by a car with dollar-a-day coverage you should maximize your UM/UIM coverage to minimize your chances of being left with no recourse in a serious motor vehicle collision.
Contact the lawyers at Zavodnick, Perlmutter & Boccia, LLC at 201-653-1155 to discuss your serious personal injury matter.