DearNewJerseyDriver,.pdf

Dear New Jersey Driver, Auto insurance is required in New Jersey. As a New Jersey driver, you have many choices when it comes to purchasing auto insurance. Each choice you make affects the coverage you receive and the amount you pay. As with any major purchase, you need to understand the product before you buy it. The New Jersey Department of Banking and Insurance has prepared this guide to help you understand auto insurance and explain how to shop for the coverage that best suits your needs. Whether you are buying a new insurance policy Table of Contents or renewing your current policy, this guide will outline how to Where Should You Start? 1 make choices that work for you. What’s in a Policy? 2 It is important to remember that you have the right to change your coverages and policy limits at any time, even if you are not near your renewal date. If you need more information about auto insurance options, visit the Department’s web site, , or call or write to the Department. Contact information is located on the back cover of this guide. What are the Types of Policies? 4 What are Limits and Deductibles? 5 Do You Want an Unlimited Right to Sue? 8 What is the Assigned Risk Market? 9 What is Tier Rating?11 What Affects the Cost of Auto Insurance?12 Sincerely, Richard J. Badolato Commissioner What is Insurance Scoring?17 What Should Every New Driver Know?21 What Should You Do if You’re in an Accident?24 Who is At Fault?26 What are Your Rights?28 What is Auto Insurance Fraud?32 Frequently Asked Questions33 Where Should You Start? Auto insurance helps protect you and your family from losses resulting from motor vehicle accidents. It is required in New Jersey. If you drive without insurance, you are breaking the law! Whether you are buying a new insurance policy or renewing your current policy, you will make many decisions about what coverage you need and how much you can pay in premium (the amount of money a company charges for insurance coverage). Some things to consider