NJ Auto Insurance FAQs

Q: When purchasing automobile insurance, what should I consider?
A: There are several things you should consider when purchasing automobile insurance that your McMahon Insurance Agent will help you with. Here are a few:

• • Purchase the amount of liability coverage which makes sense for you. Keep in mind that the state minimum requirements are very low and may not completely cover your liability in the event of an accident.
  • Select the optional coverages you want, such as Comprehensive, Collision and Rental Reimbursement.
  • Don’t base your decision solely on price. Other factors like service and claim response are extremely important in selecting the right insurance.

Q: Does my auto insurance policy cover a friend if I loan him/her my car?
A: Yes. When you loan your car to a friend or an associate, he or she will be covered under your automobile insurance policy for liability. In New Jersey, medical payments are covered under your own personal automobile policy.

Q: What is collision physical damage coverage?
A: Collision coverage applies to the loss you incur when your automobile collides with another vehicle or object, like a telephone pole.

Q: What is comprehensive physical damage coverage?
A: Comprehensive coverage provides coverage for direct physical damage losses you could incur to your car from something like damage from a hailstorm or flood waters.

Q: How can I lower my automobile insurance rates?
A: One way is to look for competitive pricing. A McMahon Insurance Agent works with many companies and can provide you comparative rates and ensure that you are getting the same coverage.

Another way to lower the cost is to change your deductible. By raising your deductible you may reduce the cost of your automobile insurance almost 10%. Of course, you must be able to pay the higher deductible amount in case of a claim.

McMahon Insurance will also look for discounts that you may be entitled to. Some examples of discounts that may be available are: multiple cars under the same policy, carrying a homeowner’s policy with the same insurance company, or having an affiliation with different groups or associations such as a motor club.