Expert: Richard L Carranza - 1/10/2005

Question
My Allstate policy states that I have The Limited Right to Sue Option. To increase to unlimited  would add 210.00 to our present $800. policy, which is for two autos. We live in NJ are are both close to 80 years. Would you recommend we should consider it and if so why?
  Thank You,
          Dave

Answer
Dave

Having grown up in NY (NYC) and having recently specialized in NJ case handling I can explain the situation to you..

It has to do with your No-Fault coverge which provides coverage (check your policy Declaration Page for the appropriate limits)for medical expenses incurred or earnings/wages lost should you or anyone (including your wife) in your vehicle be injured (regardless of fault) in an automobile accident.

In NJ you have the OPTION of giving up your UNLIMITED right to sue an AT FAULT party for non-economic damages (i.e. pain and suffering) for a premium reduction.. in this case $210.00 OR you can preserve your right to UNLIMITEDLY sue and pay the additional $210.00.

The issue is that in order to sue (Limited) you need to meet NJ's VERBAL THRESHOLD.... what that essentially means is that you need to be somewhat seriously injured in order to sue.  If you buy the Unlimited (to sue) form you are NOT limited by the verbal threshold and can essentially sue for ANY type of injury.

Allstate is a direct writer which means you have an Allstate agent.. I would ask your question to that agent for his/her input... keep in mind that they get their commission based on what you buy in the way of insurance coverage (the higher the premium...the higher the commission).

The decision is yours to make and yours alone....

In the above I have simply tried to explain your options and the issues associated.  

Hope and trust that the above answers your question(s) and provides some direction.

Feel free to get back to me with any additional issues/questions relative to this matter.

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Thanks