Like in most other states, people driving cars in Newark, New Jersey need car insurance to cover their vehicles in the case of an accident. There are many levels of coverage that one can get, and different requirements for all, but the only kind of coverage that you have to have is the basic liability required by New Jersey state insurance law. There are three types of coverage that are required for the basic Newark car insurance liability plan. These are:

• Liability for Bodily Injury.

This is for when you get into a car accident in which you are at fault. In this case, your car insurance company has to pay for the claims of the driver. This coverage does not cover you. Instead, it covers the other driver. The minimum amount according to Neward car insurance policy is $10,000. This goes for both a claim someone makes or a lawsuit that they bring against you or the company.

• Liability for Property Damage.

Again, this is for accidents in which you are the at fault driver. What this does is cover, usually, the vehicle of the other driver, and if other types of property such as a house or a mailbox are involved, it covers those, too. However, the basic for this type of coverage is only $5,000, so if claims exceed that, you could see a lawsuit.

• PIP, or Personal Injury Protection.

This is where the basic coverage finally starts pertaining to you. It covers the injuries of you or anyone else who is with you or on your policy. The minimum for this type of coverage in Newark is $15,000 for every person, and $250,000 if the injury resulting from the accident ends up being permanent.

• Uninsured Motorist.

This covers you when you are in an accident where you are not at fault, and the other driver either does not have insurance or does not have enough to cover your injuries or damages. Your own company picks up the slack here.

While you are driving in Newark, you will be required to have proof of insurance on you. This comes in the form of your insurance card, a copy of which should be stored in your car. You’ll have to show this when you get your car inspected, if you get pulled over by a cop, or if you are involved in a car accident. If you don’t have it with you, you might get tickets and you might even lose your license for a short period. It will affect your ability to get cheap Newark car insurance.

In Newark, there are strict laws for car insurance fraud, so that it does not get out of control like in its neighbor state of New York. Fraud is when you lie to an insurance company while making a claim, usually. This could mean lying about what is being fixed, about who caused the accident, about what the damages or injuries were. They are convicted with either imprisonment or almost twenty thousand dollars in fines.

Having car insurance while you are in Newark is very important, and you should not think that you are free just because uninsured motorist coverage is a requirement. If you don’t have insurance, then you are susceptible to lawsuits which could ruin your financial situation for a decade or longer. Staying insured is much cheaper than the consequences.

Cheers,

Fashun Guadarrama.