Car Insurance in New Jersey

New Hersey is popularly called the garden state. It is located within the Mid-Atlantic and Northeastern regions of the United States. It is best known for its mountains, parks, and lakes, which are extremely beautiful to behold.

Living in New Jersey and shopping for car insurance is usually a walk in the pie, as there are several car insurance companies in New Jersey.

Car insurance is a legal requirement in most states, including New Jersey. This means drivers in New Jersey must have at least minimum car insurance coverage.

Car Insurance Law In New Jersey

All states have specific car insurance laws, as what works for A does not work for B. However, New Jersey insurance laws are designed to keep drivers safe.

Drivers in New Jersey must provide proof of insurance when operating any vehicle. Failure to do so can result in paying hefty fines and suspension.

Below are some of the laws:

Drivers must meet the minimum coverage requirement
Drivers must carry no-fault insurance
Drivers must carry proof of insurance at all times
Drivers have the right to car insurance policies and should not be denied

New Jersey as a No-Fault State

New Jersey is a no-fault state. This means that drivers in New Jersey will automatically pay for their medical expenses and lost wages after an accident, irrespective of who was at fault.

The drivers must contact their own car insurance companies to pay the bills when they have been injured or their car damaged by another driver.

A no-fault state does not mandate the at-fault driver to pay the bills for the damage or injuries he costs another person.

No-fault states mandate drivers to carry their personal injury protection insurance in the case of an accident.

Minimum Car Insurance Coverage Required in New Jersey

The minimum car insurance is a must-have for all drivers in New Jersey and must be presented to law officials upon request.

Below are the minimum requirements required of you in New Jersey:

Bodily Injury Liability: This coverage covers medical bills for persons injured due to an accident you caused.

It also covers lawsuits if the persons decide to sue, and its standard policy costs $25,000 per person and $50,000 per accident.

Property Damage Liability: This Coverage Covers repair and replacement bills for vehicles and buildings damaged due to the accident you caused.

It also covers lawsuits if the person decides to sue, and its standard policy goes for as low as $25,000 per accident and as high as $100,000 or more.

Personal Injury Protection: This coverage covers the bills for injuries sustained in a car accident you caused.

It goes further to cover the bills if you are also injured. Unlike the above, it only caters to third parties.

It goes for as low as $15,000 per person or accident and as high as $250,000 or more depending on the level of injuries sustained.

Optional Car Insurance Coverage You Can Get in New Jersey

Other insurance coverages are not required of you by the New Jersey law and have no penalty attached to not having them.

However, some of them are important because they protect you when something happens that the minimum requirement cannot cover.

Below are some of the optional car insurance coverage types:

Uninsured/Underinsured Motorist Coverage

This coverage pays for property and bodily injury from an accident caused by an uninsured/underinsured driver.

Here, your insurance company foots the bills for all damages and injuries caused.

Collision Car Insurance Coverage

This Coverage pays for the repair and replacement bills of buildings or vehicles damaged due to a collision.

It is not a mandatory coverage but it helps in the case of a collision.

Comprehensive Car Insurance Coverage

This Coverage pays for car repair and replacement bills due to theft and natural disasters such as floods, fire, hail, and even animals.

It is not mandatory coverage, but drivers are advised to purchase it in the case of such occurrences.

Penalties For Driving Without Insurance

Driving without car insurance in New Jersey is an illegal action, and if caught, it comes with a lot of consequences. Below are some of them:

Heavy Fines
Potential License Suspension
Jail time

FAQs

What is the best Car Insurance Company In New Jersey?

Car Insurance companies are different for every driver due to the factors that affect every driver precisely and the driver’s unique needs.

Drivers, however, choose the car insurance company that best suits their needs; hence, the best car insurance company is highly relative.

Some drivers want companies with excellent customer service, amazing discounts, and cheap rates. The best here depends solely on the driver.

What is the Cheapest Car Insurance In New Jersey?

Again, cheap is highly relative to drivers. This is because insurance companies do not charge two drivers the same amount; it all depends on certain factors.

Some factors, which include the driver’s ZIP code, credit score, driving history, vehicle type, and others, may influence the rates drivers are given.

However, from research, NJM, Amica, and Selective insurance companies in New Jersey tend to offer car insurance at a low price.

Is Minimum Coverage Policy Enough Protection?

The Minimum coverage is the cheapest you can legally purchase and which will be required of you by law officials, inability to submit them could mean heavy fines, jail terms and suspension of license.

However, it does not provide enough protection to drivers this is because it only covers medical bills and damages that stem from accidents.

Injuries and damages can also occur due to collision and natural disasters your minimum coverage will not be able to protect you.

Getting additional coverages to serve other purposes and protect you is advisable.

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