If you are currently in the process of looking for auto insurance and therefore are getting New Jersey auto insurance quotes then you might be feeling some confusion over what it actually is you are being offered. There is a lot of jargon involved in insurance and sometimes it feels like you need a translator just to get through the contract. Understanding what an auto insurance policy actually entails is the first step to making sure that you get the right policy to suit your needs and your budget.
Every insurance policy from here is made up of coverages. These coverages are based on the type of claim paid to other or paid to you. A claim then is defined as a request to an insurer for reimbursement of a loss covered by the terms of an insurance policy. The coverages included within your policy will be different according to what you choose, however there are some coverages that are standard and required by the law.
This coverage will pay others if they have been the victim in an auto accident in which you were at fault. As well as, this coverage can help you in the event of an auto accident as it will cover lawyer expenses in the event you are sued for damages after an accident that you have caused. Liability coverage is then split further into two subsections to include both physical harm and damages to property.
Bodily Injury Liability Coverage
This will pay for the claims and the lawsuits filed by people who have been significantly injured or fatally injured because of an accident that you have caused. Amongst other things the compensation that the victim will receive includes; pain and suffering damages, reimbursement for medical bills, and reimbursement for loss of earnings. The amount paid out is determined by the situation but there will be a limit per individual and a limit per accident if there is more than one person involved in the accident.
Property Damage Liability Coverage
Property damage liability coverage will cover the financial cost of repairing or replacing any property that is damaged because of a car accident that is caused by you. There will be a limit on the amount that is paid out, and depending on the cost of the repairs they may also be further costs due to compensation.