In October, 2008, the first big snow storm of the season closed part of the New Jersey Turnpike. This identifies a key problem for major commuter routes through the State. Even at the best of times, there is a high density of traffic on the roads. But during the winter months, adverse weather conditions make driving dangerous, justifying more than the basic minimum cover if your vehicle is more expensive to repair.

Through this site, it is easy to find good value auto insurance policies. The main types of insurance policy to look for are:

1. Liability
2. Collision/Comprehensive
3. Uninsured/underinsured driver
4. No fault/Personal Injury Protection

Almost all US States require drivers to carry a minimum level of liability insurance as a condition of driving on the public roads. This gives some protection to anyone who is injured or who suffers damage to their property in a traffic accident. If you do not have a valid insurance policy, prosecution and a fine are the usual consequences. Convicted drivers may also lose their license to drive.

You will find detailed help on the website operated by the New Jersey Department of Banking & Insurance at http://www.state.nj.us/dobi/index.shtml. As a consumer, you can call directly: 1-800-446-7467. This site is useful not only as a guide to finding liability and other insurance cover, but also because the Insurance Division runs a complaints service with teeth — there is routine enforcement activity to ensure compliance by the local insurance industry with regulations.

New Jersey has a “choice” no-fault insurance system, i.e. residents are allowed to choose between at-fault and no-fault when they take out or renew a policy. The no-fault policy is the default unless a resident positively asks for an at-fault policy. Once the resident has chosen, the policy is fixed in that form until it is rewritten. A no-fault policy falls into two parts:

1. Personal Injury Protection (PIP) covers medical expenses incurred by you as the driver, and any others injured in the traffic accident no matter who was at fault. So all the cost of treatment received from doctors and other health care providers in hospital, other health facilities or at home are covered. It also includes some headings of consequential loss, e.g. lost wages, the cost of hiring someone to provide home care or home nursing services and, where necessary, funeral expenses.

2. If the State considers the driver to be particularly at fault given the degree of the injuries caused or the extent of the damage to property, it may order payment of damages to third parties on a liability basis. To help offset this possibility, the State requires drivers to carry minimum liability insurance for each vehicle on the road:
(a) for bodily injury: up to $15,000 per person and no more than $30,000 per accident distributed equally among all those injured; and
(b) for property damage: $5,000 per accident including damage to both the other vehicles involved and public property.

Over the last year, medical and repair costs have been rising more quickly than inflation. Because you will be held personally liable to pay all the amount due over and above these minimum figures, it is wise to top up your liability cover.

If you opt for an at-fault policy, these are the options to consider in addition to the conventional liability policy.

Collision covers the damage to your own vehicle if it is involved in an accident — almost always subject to a deductible. This will either be the cost of repair or, if repair is uneconomic, the fair value of the vehicle.

Comprehensive covers all the other situations in which your vehicle may be lost or damaged, e.g. through theft, vandalism, storm damage, etc.

You should also consider carrying uninsured or underinsured cover against the risk that the other driver(s) involved in the accident either drive off without identifying themselves or do not carry insurance, whether at all or sufficient to pay for your losses.

Think about GAP insurance to cover the difference between the amount owing on an auto loan or long lease, and the amount you recover as fair value when your vehicle is totaled.

You should look for specific terms to compensate you against your own loss of use, rental of an alternative vehicle and the cost of towing your vehicle to a repair shop. A final issue to consider is whether your household policy covers any personal property damaged in the accident. If not, separate cover should be put in place if you regularly wear expensive clothing, jewelery, watches, etc. and/or carry expensive property like a laptop.

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