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
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 855-613-0108
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.
$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.
“Limitation on Lawsuit” threshold. This requires a person have one of six injuries in order to recover non-economic losses.
The injuries are:
- significant disfigurement or significant scarring,
- a displaced fracture,
- the loss of a fetus, or
- a permanent injury other than those already listed.
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 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.
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