NJ Auto insurance policy question. In NJ, we have to select whether the auto insurance company or the health?

NJ Auto insurance policy question. In NJ, we have to select whether the auto insurance company or the health?

insurance company is responsible for our medical expenses in the event we are injured in a car accident. What are the pros and cons of each choice?

Sue

NJ is a PIP state so your insurance will not increase for injury claims in a not at fault accident. So, that is not an issue. If you request that your auto insurance is primary, there IS a deductible and copayment and the PIP medical expense coverage is limited to $250,000 (at least that is what it used to be, I don't think it has changed recently). The premium savings to make your health insurance primary used to be in the neighborhood of $20 per year, not worth it. You would have to ask your agent for a quote.You can still always go to your health insurance if you use your PIP up & need more coverage.The problem with health insurance being primary is that most health insurance policies have a lifetime maximum benefit (used to be $1,000,000 & I some are $2,000,000). The PIP coverage is per accident with no lifetime maximum, so technically, you can have several accidents over the years, use you maximum PIP benefit & it will still be there for the next accident. If you had used your health insurance, every accident decreases the lifetime maximum. What if you had a serious accident & then a serious disease? You may run out of health insurance.I personally would leave your auto accident related medical with auto insurance as primary & save your health insurance for other accidents (falling, stitches, etc) and disease.Also, medicare & medicaid may not allow you to use them as primary in an auto accident, you would have to check with them if you were considering this.Source(s):Former NJ Insurance agent

mbrcatz

Well, you absolutely need to be sure your HEALTH carrier agrees to paying for the auto related injuries. If they do, you're better off letting the health carrier pay, however, any services are going to be subject to copays and deductibles of your health planFor the auto policy, there are no copays or deductibles, but there's a LIMIT of medical payments (check and see that your health carrier will pick up after the limit is reached - that's important, too!), and any claims put in, are potentially surchargable, and can raise your rates.Discuss this in detail with YOUR AGENT, who can help you make the decision.Source(s):agent, 21+ years

Ask

insurance

Popular Q&A

How much does a sr22 policy cost?
It all depends on your age, what you drive, where you live and what’s on your driving record.People get taken to the cleaners when they apply for an SR22, remember that the SR22 form will only cost around $15.00 to $25.00 dollars and that's for the filing fees.The average cost will depend on...

What is a good website for getting non-owners sr22 insurance?
Try Progressive.com or 1800Progressive. They are there 24 hrs. Also, just so you are aware, you can get the nonowners policy ONLY if there is NO car in your household & NO car available for your regular use. If you buy the policy & then have a car available for your regular use (borrowing...

How can I find out the legality of an auto insurance advertised online?
Your best, most effective bet, is to stop doing "do it yourself" insurance, and ask a local agent or broker, who's licensed to do business in your state.Otherwise, you're stuck checking the AM Best ratings of every carrier, and upheld complaints, with your state insurance department. And that...

Starting A Car Lot?
There are several sources of credit for auto dealers out there but you may need some help with a co-signer to acquire the lines of credit. Google "auto dealer floor plan" or "floor plan financing" and you will find sources that have floor plan lines of credit for dealerships.The state of the...

What does a car with a junked title mean?
Howard is correct, it is called a salvage title. It is when a car has been damaged so bad in a flood or hailstorm or a collission that the insurance buys the car out from the original owner. When the insurance does the law mandates that the car must have a salvage title.The insurance company...