The sale of insurance can be compared to gambling. Companies assume the risk for payment if any accident occurs and damages are claimed. They bet that most of their customers will not have to put in a claim but continue to pay the premiums. The “insurance” contract between a person and their chosen insurance company protects the insured from future events. In New Jersey, there are significant penalties for the failure to have insurance under NJSA 39:6B-2:
- Fines of at least $300 and no more than $1,000–up to $5,000 for subsequent convictions.
- NJ Motor Vehicle Commission Surcharge of $750 ($250 per year for 3 years).
- No points for a first offense. Second or repeat offenders will be assessed 9 insurance eligibility points.
- Community service at the discretion of a sentencing Municipal Court judge
- Driver’s license suspension of at least 1 year or 2 years for a second offense.
- Mandatory jail time for second offense of up to 14 days.
Types of Mandatory Insurance in New Jersey
- Liability insurance pays for the property damages that are found to be caused by the insured. In other words, the person found to be at fault is (liable for) payment from his/her own insurance policy. This type of coverage does not include the costs for medical treatment.
- Personal injury protection (PIP) provides coverage for medical expenses regardless of who caused the accident.
- Uninsured motorist coverage provides protection for a person injured in an accident with someone who failed to have proper insurance coverage.
The at-fault driver’s insurance company will cover the property damage and repair and as well as car rentals as a result of liability insurance coverage. Furthermore, this same insurance carrier will be responsible for compensating victims who suffer injuries found to be the fault of the insured. At the accident scene, one of the most important pieces of information to be exchanged is the other driver’s insurance coverage.
However, each state has different rules and sometimes a driver will not have enough car insurance or might not have any insurance at all. For this reason, your own uninsured motorist coverage kicks in to pay the damages.
All insurance companies are required by their contractual relationship to negotiate claims in good faith. In return, the insured/claimant is required to provide assistance with the accident investigation and the timely submission of all paperwork. Sometimes, an insurance adjuster will breach this duty and act in bad faith. Therefore, individuals might be forced to sue the insurance company to obtain their entitled recovery. Most insurance companies don’t want to risk the legal exposure for breach of contract and bad faith action. These high stake lawsuits can cut into the companies profits and most times can be settled.
Remember that the goal for insurance companies is to make money by gambling that they will not have to pay out big claims. Insurance companies retain specialized lawyers to protect their interests. The lawyers at Lombardi & Lombardi, P.A. can protect your rights to the proper damage recovery.
Contact an Edison Personal Injury Lawyer to Discuss Your Car Accident Case in New Jersey
Did you or a loved one sustain serious injuries due to a car accident in New Jersey? Don’t let the medical bills pile up while you wait for the negligent party or their insurance company to do the right thing. Right now, you need an aggressive personal injury attorney on your side, fighting to get you the compensation you need, want, and deserve. The skilled attorneys at Lombardi & Lombardi, P.A. represent clients injured because of car accidents in Middlesex, Monmouth, Ocean, Somerset, and Union Counties and throughout New Jersey. Call (732) 709-7992 or fill out our online contact form to schedule a consultation about your case. Lombardi & Lombardi has two offices conveniently located in Edison New Jersey, as well as offices in Brick, Freehold and Point Pleasant. The main office of Lombardi and Lombardi, P.A. is at 1862 Oak Tree Road, Edison, NJ 08820.
The articles on this blog are for informative purposes only and are no substitute for legal advice or an attorney-client relationship. If you are seeking legal advice, please contact our law firm directly.