Personal Injury Protection (PIP)
In a recent New Jersey regulator meeting, insurance companies were reminded that each company must offer its consumers the default option of $250,000 Personal Injury Protection (PIP). Customers can request a lower limit in writing, but it’s a mandatory requirement for insurance companies offer the maximum PIP coverage.
According to Kenneth Kobylowski of the New Jersey Department of Banking and Insurance, several insurance companies in New Jersey have been violating this rule and not offering its customers the coverage:
“The Department of Banking and Insurance has become aware that some insurers have not been providing $250,000 as the default coverage limit for personal injury protection (“PIP”) benefits for a standard private passenger automobile insurance policy as required by N.J.S.A. 39:6A-4.”
PIP, also known as no-fault coverage, provides medical expenses protection in the event that the driver is an auto accident and requires medical attention. The protection covers treatment and services to the driver in regards to bodily injury, and in the state of New Jersey, the default and maximumcoverage is $250,000.
However, different amounts of PIP insurance are offered in New Jersey ranging from $15,000, $50,000, $75,000, and $150,000. Although several insurance companies have not offered the default coverage, just as many New Jersey auto insurance customers are unaware of the standard law. If customers opt for a lower PIP coverage, this could mean lower insurance rates.
If you are already a New Jersey auto insurance customer and would like to reduce your PIP coverage rate, contact your auto insurance company to discuss your options. If you are seeking new auto insurance, keep in mind that typically, New Jersey insurance companies will add the default $250,000 PIP coverage. In order to change your policy to a lower coverage, be sure to request the change in writing in order for it be effective.