Too often, car accident victims find out after the accident that their insurance policy does not cover all of their expenses. Do not let this happen to you. Following are some important facts you should know about motor vehicle insurance.
One of the most common mistakes people make when obtaining car insurance is paying too high a premium for the coverage they receive. Promotions like the “Dollar a Day Policy” are there to serve the insurance company, not the individual. If the policyholder is in an accident, his or her lack of coverage will result in paying thousands of dollars out-of-pocket. In addition, insurance companies may raise the premium despite the limited coverage, hoping that the policyholder will not notice. As car accident lawyers, it is devastating to inform our injured clients that their coverage is poor in comparison to the premium they are paying for their policy.
In New Jersey, individuals have the option to elect the “verbal threshold” when choosing an auto insurance policy. Electing this option lowers the premium and, since nobody expects to be in an accident, it is an enticing option. However, the verbal threshold binds policyholders and their immediate family members to the threshold. If they are in a car accident, their injuries must be significant and permanent in order to qualify to make a claim.
There are special considerations to the verbal threshold option. For example, the threshold does not apply if an individual or member of the individual’s immediate family does not own a vehicle. Also, the threshold does not apply if an accident victim was driving a live-in significant other’s vehicle when the accident occurred and he or she opted for no threshold.
Motorists in New Jersey are required to carry automobile liability insurance on all of their vehicles. Very often people do not realize that uninsured and underinsured motorist coverage is extremely important to them and their families. That coverage will protect you and family members with adequate compensation if you or family members are the victim of an accident suffering serious injuries and the driver who caused the accident has minimal or no insurance coverage.