New Jersey Car Insurance Optional Coverage
Uninsured Motorist Coverage
This coverage will pay you for property damage or bodily injury if you have been in a car accident that was caused by an uninsured motorist. Any claims that you would have made against the uninsured driver will instead be covered by your own insurance policy. The uninsured driver will not receive any financial benefits, regardless of the severity of their injuries or the damage caused to their vehicle.
Underinsured Motorist Coverage
This may sound exactly the same as uninsured motorist coverage but it is actually quite different. If you have this coverage, then it will only come into effect when the driver at fault in a car accident you are involved in has insurance but has less coverage than you do. If the damages exceed the limits on the coverage of the driver at fault then the uninsured motorist coverage will be able to cover the rest of the financial cost. The first $500 must be paid by the party at fault.
Collision coverage will pay for the repairs to vehicle after damage following a car accident, whether you were at fault or not. If you have caused the damage to your vehicle then this is the best option to get the cash for the repairs. However, if you were not at fault then you may wish to wait and file a property damage liability claim against the driver that caused the accident.
This will pay for any damage to your vehicle that was caused by pretty much any event apart from a car accident. For example, if you vehicle was the victim of vandalism, or has been significantly damaged by flooding, fire or extreme weather events then you will be able to claim the money back to repair your vehicle.