Online Auto Insurance Rate Analysis Shows Pricing Implications of NJ Right-to-Sue Options

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The site looked at 318 quotes made public by state regulators to quantify the cost effects of choosing a limited or unlimited right to sue.

New Jersey drivers can significantly reduce auto insurance premiums by opting for a limited right to sue when they purchase a policy, but this decision could severely cut their chances of being able to get pain and suffering compensation after an auto crash, according to a new FAQ from Online Auto Insurance.

Writers used a set of data made public by state regulators to compare car insurance quotes for policies that include limited or unlimited right-to-sue options but were otherwise identical. A total of 318 quotes from 53 insurers were analyzed.

The site found that for three hypothetical coverage profiles, the average price for a standard policy with a limited right to sue for a Newark resident was $2,483.

The average price for the same policy but with an unlimited right to sue, on the other hand, was $3,477. That means, according to the data, drivers who retain their full right to sue could expect to pay about 40 percent more on average for a policy.

But while the average increase for retaining the full right to sue was large, the size of the increase varied widely from company to company. The analysis showed that the increase ranged between 6 percent and 101 percent depending on the driver and coverage provider.

The site urges insurance shoppers to seriously consider what they are giving up in exchange for choosing the limited right to sue in order to get what could be a significant reduction in premiums.

Policyholders with a limited right to sue can still collect economic damages after a crash but can only successfully sue for pain and suffering if it is over an accident that resulted in loss of a body part, significant scarring or disfigurement, a displaced fracture, loss of a fetus, death or permanent injury.

Source: http://www.state.nj.us/dobi/division_consumers/insurance/standardpolicy.html

For all other types of crash-related injuries, suing for pain and suffering damages is off limits for those with a limited right to sue.

To learn more about this and other insurance coverage issues, readers can go to http://www.onlineautoinsurance.com/compare/ where they will have access to informative resource pages and a quote-comparison generator that can help them find the best rates on a policy.

To access the full FAQ, follow the “Questions” link located at the top of any page on the site.

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Benjamin Zitney
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