Michael R. Reitman Personal Injury Law Blog on Lawyers.com

Auto Insurance Coverage Information from Team Law

Friday, July 30, 2010 by Michael R. Reitman

In our previous post we explained what uninsured/underinsured motorist coverage is. In this post we will discuss in what circumstances your insurance company may pay for damages to your vehicle.

Provided you have a standard insurance policy, your own insurance company may pay for damages to your vehicle caused by:

Any person or organization who did not have liability insurance at the time of the accident
Any person or organization who had adequate liability insurance coverage at the time of the accident, but for some reason, the company writing the insurance denies that their policy provides coverage for the loss
Any person or organization who did not carry enough insurance to pay for your damages in full
But if you only have a basic insurance policy, you do not have any protection if your vehicle is damaged by either an uninsured or underinsured driver.
Other things you should know about being n a New Jersey car accident:
All NJ uninsured and underinsured motorist property damage claims require you to pay a $500 policy deductible.
Your insurance company will only pay your uninsured or underinsured claim if the other driver was legally responsible for your damages in the accident.
New Jersey car accident laws include a “comparative negligence” clause that allows for more than one person to be at fault for an accident. In such situations, your company can reduce the settlement of your uninsured/underinsured motorist claim by any percentage of fault that may be attributable to you.
Under New Jersey’s Comparative Negligence law, you can only collect damages if your degree of liability does not exceed that of other driver in the accident.

As advised by New Jersey’s Department of Banking & Insurance, if you do not have any liability coverage, you are responsible for paying for the pain, suffering, and other personal hardships and some economic damages, such as lost wages, that you cause. The insurer will not provide or pay for a lawyer to represent you if you are sued. Your assets will be at risk, including the risk of having money deducted from your wages if a judgment is entered against you. And, if you lack coverage and someone hits you, you cannot sue.

Dealing with insurance companies can be difficult. If you have been involved in a car accident due to another's negligence you should contact a NJ auto accident lawyer to discuss your case today.

Posted at 11:50 AM

Topic: Personal Injury