New Jersey Senate Bill S471

New Jersey 2022-2023 Regular Session

• Introduced: 1/11/22
• Refer: 1/11/22
• Report Pass: 6/20/22

Caption

Eliminates certain personal injury protection options available under standard automobile insurance policies; requires $250,000 of medical expense benefits under standard and basic automobile insurance policies.

Impact

The enactment of S471 will have significant implications on personal injury protection laws in the state. By removing the flexibility to select lower coverage limits, it may provide greater financial security for accident victims needing extensive medical care. However, this also may lead to higher premiums for consumers, as insurance companies will adjust their risk assessments with a higher baseline coverage requirement. Consumers could see increased costs associated with their auto insurance policies, which some may perceive as a burden.

Summary

Senate Bill S471 seeks to amend existing automobile insurance laws in New Jersey by eliminating certain personal injury protection (PIP) options available under standard automobile insurance policies. The bill mandates that all standard and basic automobile insurance policies must provide a minimum of $250,000 in medical expense benefits per person per accident. This change shifts the existing framework, which allows for various coverage levels ranging from $15,000 to $250,000. Therefore, the bill standardizes coverage requirements for all automobile insurance policies regardless of individual driver choices.

Contention

Notably, there may be contention surrounding this bill regarding the balance between necessary coverage and the financial impact on consumers. Proponents will argue that the strengthened coverage provisions protect individuals from the high costs of medical expenses following accidents. Conversely, critics may decry the potential for inflated insurance costs, which could disproportionately affect lower-income drivers who rely on more affordable insurance options. Moreover, the removal of lower coverage choices could be seen as a limitation on consumer freedom to select their preferred level of risk and protection.