What does this mean? Re: Car insurance

I recently got a letter in the mail from my car insurance company.

The attached Coverage Selection Form must be signed and returned to avoid an increase in your premium.
New Jersey state law provides you with a Personal Injury Protection Limit of $250,000 unless you choose a lower limit in writing on a Coverage Selection Form. Our records indicate you have a lower limit than $250,000 and we don’t have a coverage selection form on file. Please sign and return a coverage selection form prior to policy renewal.

I don’t understand this. Basically, they need written consent that I want to stay with my current much lower than $250,000 cover plan. Is the $250,000 provided by the state? If it were I don’t see why my insurance should go up. Am I just an idiot or is this confusing?

No, it’s not provided by the state. The state says “By default, you must have $250,000 in PIP coverage. To have less, you must have a signed form on file with your insurance provider”.

You have less than $250,000 almost certainly because you opted for less coverage for a lower premium when you got the policy (and before the law went into effect, I’d guess) but you have not signed the form.

So, unless you want your PIP coverage to go up to $250,000, you have to sign and return the form. If you don’t, your premium would go up to reflect the increased coverage.

It’s kind of poorly worded (New Jersey state law provides…), but hey.

Ah ok, that explains it. I was confused by the wording “provides you”. Thanks!