New Jersey No Threshold Option?

New Jersey No Threshold Option?

[Please do not explain this option to me, as I understand it. Thank you.]I presently carry the option to sue for pain and suffering on my NJ auto insurance. When this first came in about 30 years ago, it only made about $100 difference in my individual premium. Now, with 3 cars and 3 drivers, it is more than 25% of my total premium. It'-s reached the point where I am considering whether to drop the option and give up the right to sue, unless the injury meets the specified qualifications. (If you are not familiar with this list, you can'-t really answer my question.)Do you have any experience in this area or any suggestions? Do you think it'-s worth the expense of holding onto that "-no threshold"- option in the event of some crazy neck or back injury that can'-t really be diagnosed or treated? Do you have any random thoughts about the "-no threshold"- option in New Jersey?If you have a least or most favorite company, I'-d be happy to hear about them, too.Thanks for your input.


I'm afraid there's no one good answer for this question. All insurance is a gamble - you're betting you won't need it, but you have to balance what you're willing to pay in premium now vs how you'll feel if (G*d forbid) something happens later on to someone in your familiy that doesn't breach and you have no legal recourse. A personal injury lawyer would be horrified you're even asking, full tort/whiplash BI claims are their bread and butter... and, in my opinion, are also the reason your rates jumped so much in the first place.After about 17 years in the insurance industry, I personally dropped my tort option to "limited" (our version of verbal threshold). However, I greatly raised my med pay/PIP portion and wage loss to balance that out. Raising these to decent levels (+100k) was still considerably less premium than full tort.I personally figured that if it was just a soft tissue injury, as long as my meds and my work loss was covered, I'd be fine. If the injury was severe, I'd breach. The only case where I'd want to be punative about it is if the other driver was DUI, in which case I'd get an automatic breach of the threshold in my state anyways (and likely yours as well.) There's also a few other non-injury circumstances, such as out-of-state vehicles, uninsured vehicles, etc.For me, I'm happy with my decision. I think sometimes the insurance industry sells coverages on fear and not need. Get your agent to work up a few cost alternatives with increased PIP/Med Pay & wage loss coverage and see what you think. I'm afraid I can't compare apples to apples cost-wise because New Jersey is its' own animal when it comes to auto insurance.In the end, like any other insurance coverage, you'll got to weigh the likelyhood of needing the coverage versus the cost to you.As far a company referrals, I'm afraid I haven't bought insurance in NJ in years (originally from Montclair!) but I recommend sticking with the big names - State Farm, Allstate, Nationwide if your concern is service. What I consider the 'upstart' companies (Geico, Progressive) tend to have the best rates out of the gate, but if you have a claim, fuggedaboutit. Your rates will double and the service after the initial call is iffy at best. Just my opinion. If your only concern is cost, find an independent agent who can run you through a few companies for estimates.Best of luck.



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