Trenton, New Jersey (PressExposure) September 21, 2009 -- New Jersey residents should take the time to understand the big difference between the two auto insurance policies that are available in the state. These are known as "Standard" and "Basic "and although there is no policy that is right for everyone, individuals should educate themselves on what is needed to properly protect themselves as well as their assets.
It is essential for all New Jersey drivers who occupy the road to carry the proper coverage. Otherwise, they can be fined or in even worse situations such as being involved in an accident without a policy. In addition, the state's Motor Vehicle Division requires proof of NJ auto insurance in order to obtain registration for vehicles. Since having coverage does not only benefit motorists and is required by law, individuals should understand the different options that they have in order to purchase the proper policies.
The two main differences between standard and basic policies is the amount of coverage that each offer. Although a basic policy will satisfy the minimum state requirements, it is definitely not the recommended choice and will not fit everyone's need for protection. Basic policies will provide limited benefits, whereas a standard policy will provide various different options and the choice to purchase additional protection.
Additionally, a standard policy includes Bodily Injury Liability, Property Damage Liability, Personal Injury Protection with the option to purchase Uninsured/Underinsured Motorist and Comprehensive and Collision. A basic policy only includes Property Damage Liability and Personal Injury Protection with the option to purchase Bodily Injury Liability and does not offer Uninsured/Underinsured Motorist and the option to buy Comprehensive and Collision is dependent on the insurer's guidelines. The state's Department of Banking and Insurance suggests that "the basic policy should only be an option for those with few family responsibilities and few assets to protect (including income from a job)". For more details on the difference between policies, visit http://www.Newjersey.Gov/dobi/division_consumers/insurance/basicpolicy.Shtml.
However, there is a significant price difference. Therefore, one can obtain a free quote comparison from various insurers by visiting http://www.Onlineautoinsurance.Com/New-Jersey/ in order to help them determine which policy will not only provide adequate protection but will also fit their budget.