New Jersey Assembly Bill A5897

New Jersey 2022-2023 Regular Session

• Introduced: 12/18/23
• Refer: 12/18/23

Caption

Revises personal injury protection coverage for basic automobile insurance policies from $15,000 to $50,000 and requires $50,000 minimum personal injury protection coverage for standard automobile liability insurance policies.

Impact

The proposed changes in A5897 would significantly impact how personal injury protection is structured within New Jersey's automobile insurance framework. By raising the minimum coverage level, the bill seeks to address concerns about inadequate compensation for accident-related expenses, a frequent criticism of the current $15,000 limit. This legislative action is likely to affect both policyholders’ premiums and the overall insurance market, as insurers may need to adjust their pricing strategies to reflect the newfound coverage requirements.

Summary

Assembly Bill A5897 aims to amend the existing provisions related to personal injury protection coverage in automobile insurance policies. The bill proposes increasing the personal injury protection coverage limit for basic automobile insurance policies from $15,000 to $50,000. Additionally, it mandates that standard automobile liability insurance policies must include a minimum personal injury protection coverage of $50,000 per person, per accident. This substantial increase is intended to ensure that policyholders have better financial protection in the event of automobile accidents and resulting medical expenses.

Contention

During discussions surrounding the bill, various stakeholders expressed differing views on the implications of these amendments. Proponents argue that the increased coverage is necessary to cover rising medical costs and prevent policyholders from suffering financial hardship after accidents. Conversely, some critics have raised concerns about potential increases in insurance premiums as insurance companies adjust to the new requirements. Lawmakers and consumer advocacy groups emphasize the need for a balanced approach that protects consumers while maintaining affordable coverage options.