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Last updated: December 14, 2016 at 11:51 am

Car Insurance in New Jersey

New Jersey Car Insurance Requirements

Do you live and operate your vehicle in New Jersey? Welcome to Insurantly.com where we help drivers understand auto insurance coverage in New Jersey. If you are considering a new insurance plan its important to understand your coverage options.

Vehicle owners in New Jersey continue to pay some of the highest car insurance rates in the country regardless of the latest laws passed.

Therefore the better you know your options the better chance you can get the cheapest coverage that is right for you. Some coverage may not be appropriate depending on your specific situation. If you are looking to save money on NJ car insurance having a good understanding of these levels and what options you have is critical.

To compare New Jersey auto insurance rates Insurantly offers tools to get a rate quote.

Auto Insurance Coverage in New Jersey

Savings

Insurantly will connect you with an auto insurance agent after you entered your NJ zip code or explore your options and find a great rate and coverage that fits your needs by speaking to a live agent 


Coverage Rrequirements

Bodily Injury Liability: $15,000/$30,000 Limit
Liability: $5,000 Limit
Uninsured/Underinsured Motorist Bodily Injury: $15,000/$30,000 Limit
Uninsured Motorist Property Damage: $5,000 Limit
Personal Injury Protection: $15,000 Limit

Do you have assets? You may need more. Call now to get a quote on various coverage levels. It’s cheaper than you think.

Special note: See NJ’s Standard liability policy requirements here.

Average Car Insurance Rates in New Jersey

Current average car insurance premium in New Jersey: $1,300 to $1,900

Average premiums in Newark, NJ and Jersey City, NJ
Newark $1400 +
Jersey City $1300 +

(There are many factors that can affect your New Jersey rates)

Determining at fault in an auto accident

Choice No Fault

The state of New Jersey follows a Choice No-Fault system, meaning drivers may reject the No-Fault system options and retain the right to sue (Tort system) for any auto-related injury.

How much UM & UIM Coverage should you get?

$15,000/$30,000 Limit/Uninsured Property Damage $5,000. 8% uninsured drivers

In New Jersey it is estimated that vehicle owners will get into an accident once every 12 years. It is imperative that the options that you choose on your policy affect the kind of medical treatment you get including the right to recover for injuries for your entire family.

New Jersey's New Insurance Policy

“Limitation on Lawsuit” threshold. This requires a person have one of six injuries in order to recover non-economic losses.

The injuries are:

  • death,
  • dismemberment,
  • significant disfigurement or significant scarring,
  • a displaced fracture,
  • the loss of a fetus, or
  • a permanent injury other than those already listed.
More on Liability in New Jersey

Liability Car Insurance and UM/UIM

Current laws allow you to select the “basic policy,” which in New Jersey is also known as the “mini policy”. Here you are required only to carry $5,000 in liability coverage for property damage , and the option of carrying no more than $10,000 in liability coverage in the event you are sued for causing personal injuries.

The basic policy also includes PIP coverage up to $15,000 as most car accidents result in less than most medical bills.

The New Jersey basic policy however does not provide Uninsured (UM) or Underinsured (UIM) coverage. Your agent should educate you so that you understand that essentially you are buying minimal amount of medical and some coverage to pay for damages resulted to another persons’ automobile.

The standard policy still provides:

  • $15,000/$30,000/$50,000 in liability coverage,
  • provides the ability to still purchase optional liability (depending on your company of course), and $300,000, with the ability to buy umbrella coverage.
  • $250,000 in PIP medical coverage, with the option for lesser amounts,
  • and offers the option of at least $15,000 in UM/UIM coverage with the ability purchase more if it suits you.

If you talk an expert on New Jersey car insurance most will likely encourage you to buy as much liability coverage as you can afford. Your right to sue in the event of an accident is only limited by your threshold selections so choose wisely.

As for the limits of UM/UIM coverage  you are somewhat limited. Under New Jersey law you cannot purchase limits that exceed the liability coverage that you elected for. Essentially this means you cant protect yourself more than you are willing to protect people you may effect.

You also might find these pages useful

Full Coverage

Learn more about full coverage car insurance and if it is right for the type of vehicle you drive.

Liability Car Insurance

Learn more about liability insurance coverage. Every state requires some form of coverage. Do you have the right limits?

High risk car insurance

Are you paying high rates on your New Jersey car insurance? If you have a DUI, car accidents, filed claims, have bad credit, and or multiple speeding tickets are examples of what can put you into the high risk category.


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