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Standard Auto Insurance Policy

Auto insurance is required in New Jersey.
Whether you are buying a new insurance policy or renewing your current policy, you must make many decisions about the coverage you need and how much you can pay. The Standard Auto Insurance Policy provides a number of different coverage options and the opportunity to purchase additional protection. The Standard Policy is the type of policy chosen by most New Jersey drivers.

It is important to understand your needs. Do you rent or own your own home? Do you have assets to protect (including income from a job)? Will your own health insurance cover auto accident injuries? How much insurance coverage can you afford? These are some of the questions you should ask yourself before choosing a specific coverage plan.


More resources
Find a PAIP producer (or call 1-800-652-2471)
Auto Insurance Purchasing Planner (interactive guide to buying a policy)
Differences Between Basic and Standard Policies

The Basic Policy usually costs significantly less than a Standard Policy, but provides limited benefits. It is not for everyone, but it does provide enough coverage to meet the minimum insurance requirements of New Jersey law. The Basic Policy could be an option for those with few family responsibilities and few assets to protect (including income from a job).

The chart below compares the differences between the Standard and Basic policies and explains the amounts of coverage you may be able to purchase from an insurer.

Type of Coverage
Standard Policy
Basic Policy
Bodily Injury Liability   
Coverage for claims and lawsuits by people injured as a result of an auto accident you cause
As low as: $25,000 per person, $50,000 per accident

As high as:
$250,000 per person, $500,000 per accident
Coverage is not included but $10,000 coverage for all persons, per accident, is available as an option
Property Damage Liability   
Coverage for claims and lawsuits by people whose property is damaged as a result of an auto accident you cause
As low as: $25,000 per accident

As high as: $100,000 or more
$5,000 per accident
Personal Injury Protection   
Coverage for injuries sustained in an automobile accident by you or other persons covered under your policy
As low as: $15,000 per person or accident

As high as: $250,000 or more

Up to $250,000 for certain injuries* regardless of of selected limit
$15,000 per person, per accident

Up to $250,000 for certain injuries*

Uninsured/Underinsured Motorist Coverage
Coverage pays for property damage or bodily injury if you are in an accident caused by an uninsured motorist (a driver who does not have the minimum level of insurance required by law) or
a driver who is insured, but who has less coverage than your underinsured motorist coverage

Coverage is available up to amounts selected for liability coverage None
Coverage for damage to your
vehicle as the result of a collision with another car or other object
Available as an option Available as an option (from some insurers)
Coverage for damage to your vehicle that is not a result of a collision, such as theft of your car, vandalism, flooding, fire or a broken windshield. Comprehensive coverage also pays if you collide with an animal.
Available as an option Available as an option (from some insurers)
*permanent or significant brain injury, spinal cord injury or disfigurement or for medically necessary treatment of other permanent or significant injuries rendered at a trauma center or acute care hospital immediately following an accident and until the patient is stable, no longer requires critical care and can be transferred to another facility in the judgment of the physician.
The Right to Sue

For the Standard Policy, you must make a choice about the rights you will have if you are injured in an automobile accident.

The choice you make affects how much your insurance will cost and what claims will be paid in the event of an accident.

The choice you make regarding your right to sue another driver applies to you, your spouse, children and other relatives living with you who are not covered under another automobile insurance policy.

The Unlimited Right to Sue and Limited Right to Sue options only cover lawsuits for "pain and suffering" or non-economic losses. Your medical expenses and some economic losses for injuries in auto accidents will be paid up to the limits of your PIP coverage and are not affected by the choice you make here.

Unlimited Right to Sue - Under the No Limitation on Lawsuit Option, you retain the right to sue the person who caused an auto accident for pain and suffering for any injury.

Limited Right to Sue - By choosing the Limitation on Lawsuit Option, you agree not to sue the person who caused an auto accident for your pain and suffering unless you sustain one of the permanent injuries listed below: (Choosing this option does not affect your ability to sue for economic damages such as medical expenses and lost wages.)

  • loss of body part
  • significant disfigurement or significant scarring
  • a displaced fracture
  • loss of a fetus
  • permanent injury (Any injury shall be considered permanent when the body part or organ, or both, has not healed to function normally and will not heal to function normally with further medical treatment based on objective medical proof.)
  • death

    Insurance companies or their producers or representatives shall not be held liable for your choice of lawsuit option (Limited Right to Sue or Unlimited Right to Sue) or for your choices regarding amounts and types of coverage. You cannot sue an insurance company or its producers or representatives if the Limited Right to Sue option is imposed by law because no choice was made on the coverage selection form. Insurers and their producers or representatives can lose this limitation on liability for failing to act in accordance with the law. See N.J.S.A. 17:28-1.9 for more information.
More Information

If you have any questions about the Standard Policy your agent, insurance company or DOBI can assist you.

OPRA is a state law that was enacted to give the public greater access to government records maintained by public agencies in New Jersey.
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