Under New Jersey insurance law, a range of deductibles for Physical Damage coverage must be offered for which type of vehicles?

• A. Motorcycles
• B. Private-passenger cars
• C. Commercial trucks
• D. Buses

Answer: (B)

The concept being tested is consumer choice in the amount of the deductible for Physical Damage coverage. New Jersey law requires insurers to offer a range of deductible options so a policyholder can trade off higher out-of-pocket costs against lower premiums. This requirement specifically targets private passenger cars, which are the common type insured under standard auto policies; the other vehicle categories (motorcycles, commercial trucks, buses) are governed by different rules and aren’t subject to the same mandated range of deductible options. So the deductible range for Physical Damage coverage must be offered for private-passenger cars.