Few people like to think about insurance. Fewer still like to spend money they do not need to spend on insurance. Getting the lowest possible rate for auto insurance might make sense for your situation. This leads many people to forego UM/UIM coverage. Currently in Pennsylvania, UM/UIM insurance is optional. It is mandatory in New Jersey. In both states, it is against the law to drive without a minimum amount of auto insurance.
In New Jersey, every owner of a registered motor vehicle or principally garaged motor vehicle is required to carry liability insurance. Liability insurance covers you in the event that you are liable in an accident resulting in bodily injury, death, or property damage to another person. If you forget to pay your premiums, or otherwise let your insurance coverage lapse, you will be violating the law. If the police determine you are driving without insurance, you will be given a summons to appear in municipal court. The penalties increase depending on the number of times you have violated the insurance requirement.
When you are purchasing motor vehicle insurance, the insurance carrier should offer you the choice between the full tort option (known as zero threshold option in New Jersey) and the limited tort option (known as the verbal threshold in New Jersey). There is a much bigger difference between the two options than just a larger annual premium when you select the full tort option.