Key Takeaways

• Collision and comprehensive coverage are optional in New Jersey, but many drivers choose to carry both for added financial protection.
• Collision coverage helps pay for damage to your vehicle after an accident, regardless of fault.
• Comprehensive coverage helps cover losses caused by theft, vandalism, weather events, falling objects, and other non-collision incidents.
• When selecting coverage, consider your vehicle’s value, your budget, available deductibles, and your overall insurance needs.
• Choosing the right policy can provide greater peace of mind and help reduce out-of-pocket expenses after an unexpected loss.

In New Jersey, all licensed drivers must carry a minimum amount of auto insurance for their vehicles. The two most important types of coverage are collision and comprehensive. While these are often grouped, they protect against very different types of losses. Understanding the differences between the two can help you make an informed decision when purchasing your auto insurance and avoid unexpected financial burdens if you are seriously injured in a car accident.

An experienced Brick car accident lawyer will assist you with the claims process, ensure that your legal rights are protected, and pursue the maximum financial compensation possible.       

What Is Collision Coverage?

Collision coverage protects a driver when their vehicle is damaged in a collision with another car, an object such as a fence or guardrail, or when a car flips over. It covers the repair or replacement costs for your car when it is involved in these types of accidents, regardless of who is at fault. It is important to note that collision coverage only applies in situations where the driver’s car is in a direct collision. If the damage is caused by other factors, such as vandalism or natural disasters, this coverage would not apply.

The primary benefit of collision coverage is that it provides a safety net when accidents happen, and the damage to your vehicle is your responsibility. However, if another driver is at fault for the collision, their insurance may cover the damages to your car. Without collision coverage, the financial responsibility for repair or replacement falls solely on the driver.

What Is Comprehensive Coverage?

Comprehensive coverage offers protection against damage that occurs not from a collision, but from a wide variety of other events. This includes natural disasters such as storms, flooding, hail, and falling trees. It also covers theft, vandalism, fire, and even animal collisions, such as hitting a deer. Essentially, comprehensive coverage applies when the damage to your car does not result from a direct crash but from other incidents outside of your control.

For example, if a hailstorm severely damages your car or your car is stolen, comprehensive coverage would pay for repairs or the replacement of your vehicle. Unlike collision coverage, which applies only in specific accident scenarios, comprehensive coverage addresses damage from a broader range of sources. As with collision coverage, comprehensive coverage typically does not cover damage when another driver is at fault in an accident; their insurance would cover the costs.

Comprehensive Coverage vs. Collision Coverage: What Is the Difference?

The main difference between collision and comprehensive coverage is the cause of the damage. The following provides an overview of both types of coverage, including what they cover, what is not covered, and other important information to consider when making decisions about auto insurance:

Collision coverage:

• Covers damage to your vehicle from accidents with other vehicles, regardless of fault, single-car rollovers, and accidents with stationary objects like road signs and guardrails
• Not required by law
• Generally required by vehicle lenders
• Is included in “full coverage”
• Deductible is generally between $100 and $2,000
• The limit is typically the vehicle’s actual cash value

Comprehensive coverage:

• Covers damage to your vehicle from theft, vandalism, animals, weather events like hail, fire, and other non-collision incidents
• Not required by law
• Generally required by vehicle lenders
• Included in “full coverage”
•  Deductible is generally between $100 and $2,000
• The limit is typically the vehicle’s actual cash value

The following are examples of real-world scenarios, and the type of coverage that would apply:

• If you rear-ended another vehicle on your way home from work, the damage to your vehicle would be covered by your collision coverage. 
• If you skid off the road during a snowstorm and hit a guardrail, your collision coverage generally applies.
• If your vehicle is damaged after hitting a deer that runs across the street, animal collisions are generally considered comprehensive claims.
• A severe hailstorm that causes damage to the hood, roof, or trunk of your vehicle is covered under comprehensive insurance.

Is There Anything Collision/Comprehensive Coverage Does Not Cover?

When purchasing auto insurance, understanding what is not covered in your policy is just as important as knowing what is.

For example, if you are involved in a car accident, collision coverage does not cover the damage to the other vehicle involved. In addition, if a non-collision incident damaged your vehicle, collision coverage does not cover the damage. Comprehensive coverage also does not cover damage to other vehicles, or the damage to your own vehicle if it was caused by a collision with another vehicle.

Neither type of coverage covers damages caused by negligence, misuse, or incidents caused by drugs or alcohol. An experienced car accident lawyer will address any questions or concerns you have about the type of coverage you have and pursue the maximum damages to which you are entitled.

Does My Collision Coverage Still Apply if I Was at Fault?

New Jersey is a no-fault insurance state, which means that your own insurance typically pays for your medical expenses, regardless of who caused the accident. Your Personal Injury Protection, or PIP coverage, pays for the costs associated with the accident, even if you were at fault. Your collision coverage applies to your own vehicle’s damage, and your liability coverage covers the damage to the other driver’s vehicle.

Do I Need a Lawyer If I Have Comprehensive Coverage?

Unless you were involved in a minor fender bender that caused no injuries, it is in your best interest to contact an experienced lawyer, particularly in the following situations:

• You suffered an injury.
• Your insurance company denied your claim.
• Fault is being disputed.
• Your injury resulted in a long-term disability.
• The accident involved a commercial vehicle or multiple parties.
• You have questions about your legal rights.

Do I Need Both Collision and Comprehensive Coverage?

While collision and comprehensive coverage protect against different types of damage, they both serve to safeguard the value of your vehicle. If you have a newer car or one that is of significant value, having both collision and comprehensive coverage may be a wise decision, as these types of insurance help you recover from incidents that could otherwise be expensive to handle out-of-pocket.

For older vehicles, however, the cost of both collision and comprehensive coverage may outweigh the benefit. The premiums for these coverages can increase as a car gets older, and if the car’s value has significantly depreciated, it might not be worth purchasing both.

Frequently Asked Questions

• How Does New Jersey’s No-Fault System Work?

New Jersey drivers are required to carry Personal Injury Protection (PIP) insurance, which covers your medical expenses and lost wages, even if you are at fault for causing the accident.

• What If the At-Fault Driver Does Not Have Insurance?

If the other driver involved in the accident was at fault, but they have no insurance, you can file a claim with your insurance company under your uninsured motorist coverage. You may also have the option of suing the uninsured driver for damages. However, collecting from an uninsured driver can be difficult if they lack sufficient assets to cover the full damages.

• What Is the Deadline for Filing a Personal Injury Claim in New Jersey?

The statute of limitations for filing a personal injury claim in New Jersey is two years from the date of the accident. If your claim is filed after the deadline, it will likely be denied, and you will be unable to recover any damages.

• Can I Seek Damages for Pain and Suffering?

You may pursue a lawsuit against the at-fault driver for pain and suffering damages in New Jersey if you suffered a serious injury, or if certain financial thresholds are exceeded. 

Contact Our Skilled Brick Car Accident Lawyers at Kitrick, McWeeney & Wells, LLC for Legal Guidance After a Motor Vehicle Crash

If you were involved in an accident and are uncertain about your coverage or need legal assistance, our Brick car accident lawyers at Kitrick, McWeeney & Wells, LLC can help. For a free consultation, submit our online form or call 732-920-8383. Located in Manasquan and Brick, New Jersey, we serve clients across the state.