New Jersey Senate Bill S1473

New Jersey 2024-2025 Regular Session

• Introduced: 1/9/24
• Refer: 1/9/24

Caption

Revises personal injury protection coverage for basic automobile insurance policies from $15,000 to $20,000 and requires $50,000 minimum personal injury protection coverage for standard automobile liability insurance policies.

Impact

If enacted, S1473 would mean that both new and renewed automobile insurance policies would be required to meet this higher coverage threshold within 90 days following the bill’s enactment. By increasing the minimum insurance requirements, the bill aims to reduce the financial burden on injured parties who might otherwise face out-of-pocket expenses that exceed the previous limits. This move has the potential to improve health outcomes for accident victims, as they would have access to greater resources for medical treatment immediately following an accident.

Summary

Senate Bill S1473 proposes significant changes to personal injury protection (PIP) coverage in basic automobile insurance policies in New Jersey. The bill increases the minimum PIP coverage from the current $15,000 to $50,000, ensuring that all standard automobile liability insurance policies also offer a minimum of $50,000 in personal injury protection. This legislative change aims to provide better financial protection for individuals who sustain injuries resulting from automobile accidents, enabling them to cover more of their medical expenses without having to navigate complex liability issues.

Contention

While the bill proposes an increase in coverage that many might view as beneficial, it may also raise concerns among insurers and consumers regarding potential increases in insurance premiums. There are fears that insurance companies could respond to higher coverage requirements by raising their fees, which could disproportionately affect low-income drivers. Furthermore, there may be discussions among stakeholders about the effectiveness of increased coverage versus the overall costs associated with insuring higher limits. Legislative discussions will need to address these concerns to strike a balance between adequate coverage and the affordability of insurance premiums.