Why is my car insurance company calling me about my PIP coverage?

I bought a NJ policy with the cheapest minimum coverage I could find. Now the insurance company is calling me every day, saying I have to sign papers because of the coverage I want. Even though I already paid for the policy, they changed my PIP coverage without my permission! What's going on?

Answer provided by
Shannon Martin
Answered on Apr 26, 2021
Shannon is an expert in personal lines liability insurance with 13 + years of insurance industry experience. She also served as a special insurance liaison to AARP members for 6 of those years. She is a graduate of UL Lafayette and currently resides in NY with her family. Shannon is also an amateur juggler, ukulele player, and is a time travel paradox theory enthusiast.
“Having your car insurance coverage default to a higher limit is frustrating, especially when it’s unexpected and not properly explained.
In New Jersey there is an option form, which is required by the state, that must be signed by the insured (you) to acknowledge the coverage limit that you selected. If you do not sign this form, the insurance company is required to increase your PIP coverage limit.
PIP stands for personal injury protection, and it helps cover expenses like medical bills and lost wages after a car accident, no matter who is at fault.
This form is designed to protect you from an insurance company that might otherwise offer low-cost insurance without making you aware of the potentially inadequate coverage.”

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