NJ Standard Policy

What is the Standard Policy?

The Standard Policy is New Jersey's more comprehensive auto insurance option, offering higher coverage limits and, critically, a genuine choice of lawsuit option that the Basic Policy does not provide.

Where the Basic Policy locks in the verbal threshold, a Standard Policy allows the driver to select between the Limitation on Lawsuit option and the No Limitation on Lawsuit option.

That choice, made at purchase and reflected on the declarations page, is one of the most consequential decisions in the entire policy.

It is the more common policy type among New Jersey drivers, though the specific selections within it vary considerably.

What does it typically include?

Coverage levels are meaningfully higher across several categories.

• Higher available PIP medical coverage limits
• Higher bodily injury liability limit options
• A genuine choice between the two lawsuit options
• Higher available UM and UIM limits
• Broader optional coverage selections generally

Why does the lawsuit option choice matter so much?

Because it determines whether a pain and suffering claim after a crash requires meeting one of six statutory injury categories, or whether it can proceed under ordinary negligence principles instead.

Many drivers select the lower premium verbal threshold option without fully understanding what they gave up, since the choice is usually made quickly at the point of purchase.

Reviewing this selection at renewal, well before any accident occurs, is one of the few opportunities to meaningfully affect what a future claim will look like.

What else should be reviewed?

The actual PIP limit selected, since a Standard Policy can still carry a range of PIP limits depending on what was chosen.

UM and UIM limits, since these determine what protection exists if the at fault driver has too little or no insurance.

Any named driver exclusions, which can remove a household member from coverage entirely.

Common questions

Does a Standard Policy guarantee I can sue for pain and suffering?

Only if the No Limitation option was selected. A Standard Policy with the Limitation option still carries the verbal threshold.

How do I find out which lawsuit option I selected?

It is stated on the declarations page. Requesting a current copy from your insurer confirms the selection.

Is a Standard Policy always more expensive than Basic?

Generally yes, reflecting its higher coverage limits and the broader lawsuit option choice, though the specific premium depends on the selections made within it.