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Significant Changes to Property Damage Coverage

For the first time since automobile insurance coverage minimums were established over fifty years ago, they are finally being raised to try to match the realities of the extent of damage automobile collisions cause to both individuals as well as the vehicles they operate.

In August 2022, the Governor of New Jersey signed A-4291/S-481, which increases the minimum coverage to $25,000 for bodily injury for one person in an accident, $50,000 for more than one person in an accident on January 1, 2023 before ramping up to $35,000 for bodily injury for one person in an accident and $70,000 for more than one person in an accident in 2026. Additionally, the bill raises the minimum coverage for property damage in an accident from $5,000 to $25,000 on Jan 1, 2023. This increase in coverage not only better protects drivers, but also ensures the facility tasked with making the necessary repairs has the flexibility to do so. Whereas, in the past, $5,000 of coverage led to possible personal exposure of the insured if the repairs exceeded this relatively low policy minimum that many people carried. Additionally, prior to January 1, 2023, the minimum bodily injury coverage insurance companies were allowed to offer was $15,000 per person/$30,000 per accident. The glaring policy issue, for decades, was whether or not someone carrying this kind of coverage could (without exposing personal assets) fully and fairly compensate someone who is seriously injured as a result of their negligence. Perhaps fifty years ago it was a closer call, but today the answer is almost surely a “No.”

This bill is an important step forward in New Jersey. It helps not only the victims in these scenarios, but also the people carrying these policies as they are even more insulated from personal exposure in the event of a serious collision.

The Law Office of Mitchell H. Portnoi, P.C. concentrates its practice on Personal Injury, Workers’ Compensation, and Diminished Value matters. We are always happy to provide a free consultation, and will charge you no attorney’s fee unless we recover a settlement for you.

Call 908-228-8800 and ask for either Mitchell H. Portnoi or Kyle S. Reed or complete our form to send us an email.

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