New Jersey Senate Bill S3266

New Jersey 2022-2023 Regular Session

• Introduced: 10/31/22
• Refer: 10/31/22

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 new legislation is expected to enhance consumer protection by providing greater financial support for medical expenses associated with automobile accidents. Advocates argue that the increase to $50,000 in coverage will relieve some of the financial burdens faced by individuals receiving necessary medical treatment following an accident. However, there may be concerns regarding the overall impact on insurance premiums, which could increase as insurers adjust to the expanded coverage requirements. The bill seeks to amend existing laws, particularly P.L.1972, c.70 and P.L.1998, c.21, thereby altering the landscape of automobile insurance in the state.

Summary

Senate Bill S3266 introduces significant changes to the personal injury protection (PIP) coverage requirements for basic automobile insurance policies in New Jersey. The bill proposes to increase the existing PIP coverage from $15,000 to $50,000 per person per accident, while also mandating that standard automobile liability insurance policies include at least $50,000 in personal injury protection coverage. This amendment aims to ensure that individuals involved in automobile accidents have access to adequate medical benefits without regard to negligence or fault.

Contention

Notable points of contention around S3266 may include discussions on the balance between increased coverage and its potential cost implications for consumers. Insurance companies may express concerns about the financial impact of mandatory higher coverage limits, potentially advocating for additional measures to compensate for increased liability risks. Consumer advocacy groups may support the bill, arguing that higher PIP coverage is essential for protecting the interests of individuals injured in accidents, while insurance representatives may argue for caution in implementation to maintain affordability for policyholders.