Confusion and intimidation are two common feelings people get when they are faced with making decisions about their automobile insurance. People are always asking what type of coverage they have or what type of coverage they need. Sometimes, after a person is involved in a motor vehicle accident, they simply do not know how to proceed in handling personal injury, lost wage or property damage claims. Below are some frequently asked questions regarding car insurance.

Question: Do I have to purchase motor vehicle insurance?

Answer: The law in New Jersey requires that every owner of a registered automobile purchase and maintain insurance coverage on the automobile. Specifi cally, the law requires that automobile liability insurance be purchased. Liability insurance that you purchase will protect you and your loved ones and protect your assets. If you are caught driving without insurance, you may be subject to a large fi ne, have your driver’s license suspended, or even face jail time.

Question: How much automobile insurance coverage can a person purchase?

Answer: Under the law in New Jersey, an insurance company is required to provide a minimum amount of coverage in the amount of $15,000 per person and $30,000 per accident. That is the bare minimum you must carry. The law in New Jersey also allows people to purchase additional liability insurance coverage up to $250,000 per person and $500,000 per accident or a $500,000 single limit liability policy. Remember that liability insurance is meant to protect you and your assets. The more liability coverage you have, the more security you have. If you do not have proper insurance, you may be personally responsible for any damage of injury resulting from an accident.

Question: My automobile insurance company sent some documents with terms I am not familiar with: Tort Threshold and PIP coverage. What do they mean?

Answer: Tort Threshold. The "tort threshold" or "limitation on lawsuit option" on your insurance policy requires certain injuries, such as death, signifi cant disfi gurement or scarring in order to maintain a claim for damages. This limitation may also affect other family members who reside with you. Instead of the "limitation on lawsuit option," you may purchase a "no limitation on lawsuit option." In that case, you may fi le a claim for any injury that you suffered as the result of a motor vehicle accident. Even if you have the limitation on lawsuit option now you can change it at any time by contacting your insurance agent. Although the "no limitation on lawsuit option" is more expensive, it enhances your coverage and removes barriers to collecting damages for injuries caused by the other driver.

PIP Coverage. Personal injury protection coverage ("PIP") provides benefi ts to a person for their automobile accident related medical expenses. This is sometimes referred to as "no fault" benefi ts, as it provides coverage for your medical expenses, regardless of fault. The standard amount of coverage for the payment of medical expenses is $250,000 per person per accident. In addition to paying for medical expenses, PIP coverage provides loss of income benefits as well as essential service benefi ts. The standard policy provides loss of income benefi ts in the amount of $100 per week, but in order to protect yourself with income continuation benefits, you can increase the amount of benefi ts up to the maximum allowed which is $700 per week. Essential service benefi ts reimburse the injured person as well as his family members who rely on him for essential services for the cost of hiring replacement services. Death benefits and funeral expense benefi ts are also available under PIP coverage.

Question: My automobile policy indicates that I have uninsured and underinsured motorist coverage. How do these benefits work?

Answer: Unfortunately, not all drivers follow the law in New Jersey and some do not carry liability insurance. These persons are known as uninsured motorists. When you have uninsured motorist coverage, you can be compensated for injuries that result from an accident with a driver who is legally responsible for the injuries, but has no liability coverage. Uninsured motorist coverage may also apply when you are injured in an accident with an unidentified hit-and-run vehicle.

Underinsured motorist coverage protects an injured party when the driver who is at fault does not have enough insurance coverage to fully compensate an injured party for his or her injuries. For example, if an at-fault driver only has $15,000 worth of liability insurance and the injured party is entitled to compensation in the amount of $100,000, the injured person may be able to collect from his own insurance company, up to an additional $85,000. Question: If I am injured in an accident, how much is my case worth?

Answer: In New Jersey, there is no formula as to what the value is. Typically, there are many different elements that determine the value of a case. They include the following: pain and suffering, outof- pocket expenses, future medical expenses, lost wages, future lost wages, loss of earning capacity, disability, impairment and loss of enjoyment of life.

Question: What if my spouse was injured in an accident and cannot take care of certain things around the house, would I be entitled to compensation?

Answer: Under the law in New Jersey, a spouse is entitled the services of his/her spouse in attending to household duties, to companionship and comfort and to consortium (marital relations).

Question: How do I properly protect myself?

Answer: Accidents happen when you least expect them to happen. Be prepared. Sooner, rather than later, sit down with your insurance agent or your attorney to make sure you have the proper coverage on your own motor vehicle. If, unfortunately, you have been involved in an accident, whether it is a motor vehicle accident or a fall down accident or even an accident while working, I will be happy to sit down and speak with you about your rights.