Two highway signs on the New Jersey Turnpike.

Ten Benefits of Car Insurance in New Jersey 

If car insurance wasn’t required by law, would you still carry it? You may be tempted to say no, but if you were involved in an accident that was your fault, how would you pay for the damages to people and property? Depending on the severity of the accident, it could ruin you financially. How would you possibly pay to replace someone’s car and cover their costly medical bills? The benefits of car insurance cannot be overstated when you consider the great risk you would be taking by foregoing coverage. Let’s reverse the scenario… What if an uninsured driver ran into you, causing major damage to your car, and left you severely injured? Without car insurance, the at-fault driver would be hard pressed to make things right financially. 

The next time you are contemplating your car insurance premium, consider the enormous amount of risk that you are transferring from yourself to your insurance carrier. With the rising costs of health care and car values, most individuals would be in big trouble if they caused an accident without coverage! Let’s consider ten benefits of car insurance.

It protects you legally.

We arguably live in the most litigious society in the world. Lawsuits related to auto accidents are no exception. When a traffic accident you cause results in damage to people and property, you’ll be at fault and financially liable. Depending on the nature of the accident, the others involved may claim they have been injured as a result of the accident and pursue litigation against you. Depending on your car insurance coverage, your policy may cover a lawsuit and legal fees when you’re sued by a third party.

Insurance reduces lawsuits.

Can you imagine the chaos that would ensue if the state lifted the mandatory requirement that all motorists in New Jersey carry car insurance? Almost every fender bender would result in litigation and financial hardship. The courts would probably be overwhelmed with hearings and documentation. In many cases, your insurance company can settle your case out of court and deal directly with the insurance company that represents the other party or parties. This saves time and money and indirectly keeps insurance premiums lower.

It provides survivor benefits.

It’s not pleasant to think about traffic accidents that result in fatalities. According to the National Highway Traffic Safety Administration, 624 fatalities in New Jersey were caused last year by car accidents. Your car insurance policy may provide benefits to survivors when there is a traffic accident that results in death.

Car Insurance saves you time and money.

Have you ever been in a car accident, and had to drive a rental car while your vehicle was being repaired? Your car insurance carrier may provide loss of use coverage which covers most of the cost of a rental during the days, or weeks your car is in the shop. There may also be roadside assistance coverage in your auto policy that would cover the cost of towing your car to a local repair shop. Depending on your carrier, you may have a reservation and daily allowance for a rental car shortly after an accident. Consider the out-of-pocket expense you would incur if you had to cover the costs associated with towing and rental services.

It bridges the financial gap.

If you buy a late model vehicle that has a higher than average price tag, there’s a good chance you’ll owe more on your car loan than the car is worth. If you’re involved in a traffic accident (even if it’s not your fault) that results in your car being totaled, your car insurance carrier will most likely offer the replacement cost, or fair market value of your car. If your loan amount is more than your car’s value, you’d be financially upside down. Your insurance carrier may offer what is referred to as “gap coverage,” which closes this gap, for a small annual policy rate increase.

It supplements health insurance.

It’s highly recommended that you have health insurance to protect yourself, and your loved ones. However, the medical coverage on your car insurance policy may provide limits to offset healthcare related costs that may not be covered with traditional health insurance. If you sustain physical injuries resulting from a traffic accident, the Personal Injury Protection (PIP) portion of your policy may provide coverage for injuries and extended hospital stays.

It protects you from financial ruin.

You’re driving down the road in the morning on your way to work. You look down for a second to change the station on your radio. When you look up, traffic (including the car directly in front of you) has come to a halt as a result of the morning rush… Boom! You’ve slammed into the back of an unsuspecting motorist, causing major damage to the person’s car. As you collect yourself, and the realization of what has just happened settles in, you get out of your car only to realize the situation is much worse as the person you’ve struck remains in their car grimacing in pain. Without car insurance, you’d probably be on the hook to pay 100% of the damage you just caused, which could result in financial ruin.

It protects you and your property.

There are two sides of the proverbial coin at play here. There are times when there is shared liability; however most traffic accidents result in you being at fault, or not at fault. When you’re at fault, your policy will cover you in most situations. If you’re involved in a car accident that is the fault of another driver, that driver’s policy should cover the costs associated with vehicle repairs depending on the severity of the accident.

It helps maintain law and order.

You may not agree with every law on the books. The legal requirement in the state of NJ (and almost every state) that all drivers have car insurance is a good law. Without any true accountability for actions that cause damage to others and their property, the presumptive result would mean driving on roadways that would be significantly less safe.

It provides confidence and peace of mind.

Would you feel more comfortable getting behind the wheel knowing that other drivers had car insurance policies to protect against risk? If you stop to sincerely think about the risks associated with driving and overall highway safety, your answer should be a resounding “yes!” If you want to drive with confidence and have the peace of mind that you’ve aligned yourself with a car insurance carrier that provides flexible policy coverage, exceptional service, and decades of experience, consider Plymouth Rock Assurance for your car insurance needs! Find out more about the best car insurance for you as well as tips on how to save money on the insurance policy that is perfect for you.

Find out more information about personal car insurance and high risk coverage.  Learn about when collision insurance is not worth it and what you should do if a car crashes into a house.

Call 855-993-4470, get your free quote online, or find an agent to learn about the benefits of car insurance in NJ. If you need additional information it can be found on our Contact Us page.