New Jersey No Fault Auto Insurance
There are many ways to acquire cheap no fault insurance in New Jersey. In many cases, it requires a fair amount of research on the web to find the best deal. It is a widely known fact, but often ignored, that the same company may offer lower rates online than with an agent or over the phone. Anytime companies can lower overhead and reach their target audience it means a discount to the end user.
No fault insurance is currently available in only 12 states and Puerto Rico. You may purchase no fault insurance in Florida, Michigan, New Jersey, New York and Pennsylvania have verbal thresholds. The final seven states; Hawaii, Kansas, Kentucky, Massachusetts, Minnesota, North Dakota and Utah, use a monetary threshold. Three states have a "choice" no-fault law. In New Jersey, Pennsylvania and Kentucky, motorists may refuse the litigation threshold and opt to sue for any auto-related injury.
The thresholds - both verbal and monetary - mean simply that motorists have the right to sue for severe injuries plus pain and suffering if the case meets certain criteria. The criteria known as a threshold, relate to the severity of injury.
The idea behind no fault insurance is to minimize the involvement of the courts and to lower the cost of insurance by making the insured's own company pay for minor injuries and damages instead of going through the costly claims process. Personal injury protection or PIP is in place to cover a specific dollar amount of your injuries due to an auto accident. PIP usually starts at a $2500 allowance for injuries and basic care. In some states it is mandatory that drivers carry PIP on their auto insurance policy.
The debate surrounding no fault insurance started in the sixties and continues to this day. One of the flaws that attached itself to the no fault concept is the opportunity for fraudulent claims. The monetary threshold has been accused of inviting inflated medical bills, because it targets a specific dollar amount.
Whether you search online for cheap no fault insurance or find an agent to provide coverage it is imperative that you not only read the fine print but do your homework and see how no fault coverage works in your state. After an accident occurs it is too late to change or check coverage.