New Jersey Senate Bill S2259

New Jersey 2024-2025 Regular Session

• Introduced: 1/9/24
• Refer: 1/9/24

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 legislation will have a substantial effect on state laws governing automobile insurance. The current framework allows for various coverage options at lower amounts, which could leave some individuals underinsured in the aftermath of an accident. By standardizing the minimum medical expense benefit to $250,000, the bill seeks to ensure that victims of auto accidents have access to necessary medical treatment without the risk of exhausting their insurance benefits mid-treatment. In particular, this higher limit addresses concerns about severe injuries that require extensive medical care.

Summary

Senate Bill 2259 proposes significant changes to the personal injury protection (PIP) provisions within standard and basic automobile insurance policies in New Jersey. The core objective of this bill is to eliminate various lower-cost personal injury protection options currently available, compelling all standard policies to include a minimum medical expense benefit of $250,000 per individual per accident. This change aims to enhance the level of medical coverage available to individuals injured in automobile accidents, ensuring they receive adequate care without the limitations of previously available lower coverage options.

Contention

Despite the positive aspects reported by supporters, who argue that higher coverage will ultimately benefit consumers, there are notable points of contention surrounding SB 2259. Detractors express concerns that the removal of cheaper insurance options may lead to increased premium costs for consumers. They argue that by mandating a minimum coverage level, the bill could make automobile insurance less accessible for lower-income drivers, who may prefer having options for less expensive insurance policies. Additionally, the implications of this bill call into question the balance between ensuring adequate medical coverage and maintaining affordable insurance premiums for residents.