WHAT EXACTLY DOES “FULL COVERAGE” MEAN?

When signing up for auto insurance, many drivers may opt for a standard policy. These policies will offer some general protections for drivers, including covering the cost of repairs after an accident. Others, however, may want more comprehensive insurance and opt for “full coverage”. But, what exactly does “full coverage” mean?

Common Features of Full-Coverage Auto Insurance in New Jersey

In the state of New Jersey, full coverage auto insurance includes a minimum of $15,000-30,000 in liability limits, $5,000 in property damage liability cover, and the ability to purchase personal injury protection of between $15,000 and $250,000.

What is Personal Injury Protection?

As noted above, full-coverage insurance offers the ability for policyholders to obtain personal injury protection. Personal injury protection (also known as PIP) pays for the medical, rehabilitation and living costs of a driver who suffers an accident in the state of New Jersey. PIP pays out regardless of whether the diver was at fault, meaning no matter what, the injured driver is covered.

In New Jersey, PIP has two unique options: health insurance as primary medical coverage, or lawsuit restricted.

What Costs are Covered by PIP?

Under New Jersey state law, PIP must cover the following expenses:

  • Medical services, including ambulance fees
  • Medications
  • Hospital expenses
  • Diagnostic services
  • Surgical costs
  • Rehabilitation costs

PIP is also required to cover any wages an injured driver may have lost as a result of their accident. The total limits, however, cannot surpass the normal income of the driver and are capped at $5,200 a week. The injured driver is also entitled to compensation for any services they may have rendered but they were unable to because of their injuries. These services include things such as laundry, mowing the lawn and cleaning. These tasks are capped at $12 per day.

Filing a PIP Claim

An insurance company will usually require a written notice as soon as practicable after an accident. This need can often be satisfied when the company receives a medical bill for the driver’s injuries. The injured party will likely then be required to file a PIP form. This form will go over the basics of the injuries, when the accident occurred, and what medical providers have been seen. If the driver is getting treatment from somewhere other than a hospital, such as a medical specialist, the company will likely require a notice of “commencement of treatment” within 21 days of the first office visit. Not complying within the 21-day grace period may result in a reduced payout.

If you are having difficulties with your insurance company, you should speak with an experienced New Jersey personal injury attorney right away.

Were You Injured in an Accident? Call DeZao Law Today

If you are injured in a crash, but your insurance company is dragging its feet or withholding payments you are owed you need to seek expert legal guidance right away. Because of the sensitive nature of your claims, make sure you speak with an experienced New Jersey personal injury attorney today at the Law Offices of James C. DeZao, P.A. Our firm is here to assist you with your case and help you claim the compensation you rightly deserve. Call us today at (973) 358-6134 for a free consultation.