“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.”