New Jersey Auto Insurance

New Jersey auto insurance is required for all cars in New Jersey. It does not matter the age of your car, whether it is running or not, what state you purchased it in, or how safe a driver you are. If you drive a car and live in New Jersey, you are required to have auto insurance. Understanding the requirements of and your need for car insurance for your NJ vehicle is a necessity before choosing a policy.

New Jersey Auto Insurance Requirements

Every state has a minimum insurance requirement for all of their drivers and New Jersey is no exception. However, although the state has a minimum recommendation, this does not mean you are limited to that amount. In fact, most states recommend that you increase your protection to as much as you can afford. This ensures that if an accident occurs you will not have to worry about additional financial burden.

New Jersey policies come in two forms, basic and standard. The basic policy is a policy that only covers the required amount of coverage in New Jersey. The standard policy includes other coverage like uninsured motorist coverage and PIP.

The State of New Jersey minimum (basic) auto insurance requirements are:

1. Personal injury protection (PIP) coverage of $15,000 – this pays for injuries sustained to yourself or others in your vehicle no matter who caused the accident. (Maximum coverage is $250,000)
2. Property damage liability coverage of $5,000 per vehicle – this coverage pays for property that you damaged in an accident that you caused. (This would not apply if you are struck by another car and forced to hit someone else, at this point the person at fault would be responsible.) (Maximum coverage $5,000 per accident)

The State of New Jersey recommended (standard) auto insurance coverages are:

1. Bodily injury liability of $15,000 per person will pay for claims and lawsuits from an accident that you cause. (Maximum coverage is $250,000 per person)
2. Bodily injury liability of $30,000 per accident pays for coverage of everyone in an accident that you cause up to the amount you choose. (Maximum coverage is $500,000 per accident)
3. Property liability damage of $10,000 pays for damage that you cause to other property. (Maximum coverage is unlimited)
4. Uninsured motorist coverage of $30,000 will cover you if you are hit by an uninsured motorist. (Maximum coverage is the amount you select for your liability coverage)
5. Underinsured motorist coverage of $30,000 covers the difference between your injuries or damage and the amount the insurance the person who caused the accident has. (Maximum coverage is the amount you select for your liability coverage)
6. PIP coverage of $250,000 covers the injuries to yourself and anyone in your car no matter who is at fault in the accident. (Maximum coverage is unlimited)

Other options to consider for your New Jersey car insurance are:

1. Collision insurance covers damages to your car as a result of a collision with another car or an object.
2. Comprehensive insurance covers natural disasters, striking an animal, vandalism, etc. This is for areas not caused by an actual car accident. Often comprehensive insurance is required by a creditor if you are financing your vehicle.

Deciding what kind of coverage that you need requires that you consider your obligations. If you are a single person with no children or spouse to consider, then perhaps the basic plan is right for you. In addition, this plan is ideal for teenagers as it is the least expensive coverage and insuring a teenage in New Jersey is very expensive.

If you are married or you have children, to determine coverage you need to consider what the family would need in order to survive financially if someone were too injured to work, and whether or not you have regular health insurance that would cover injuries if the auto insurance was maxed out.

How New Jersey Auto Insurance Rates Are Determined

New Jersey is a notoriously difficult state to get insured in. Over the past two years, insurance companies like State Farm and All State were not writing any new policies. However, recently GEICO announced their intention to insure New Jersey drivers and many other companies have followed suit.

There are factors that every insurance company considers when giving a potential client a quote.

1. Driving Record – the cleaner your record the better, if you share a policy the bad driving of your family members will increase your rate.
2. Vehicle Type – the more expensive the vehicle the more expensive it is to insure it, this is because it costs more to repair or pay for a newer vehicle.
3. Geographic Area – if you live in an area that has a lot of claims then your insurance cost is going to be influenced by other drivers.
4. Gender – females typically have a lower cost policy than males as statistics show that women have better reaction time and are more cautious drivers.
5. Age – the younger you are the more your policy will cost, however, when you get to a certain age, around 65 your rates will go up again, but not excessively.
6. Marital Status – married couples are statistically more cautious drivers and as such have lower premiums.
7. Vehicle Use – the more you drive your vehicle the more your insurance will cost, this is because you increase your risk of an accident every time you drive. Some companies will consider your route to work as well when making their calculations.
8. Coverage – if you have ever allowed your insurance to lapse your premiums will likely be higher than if you carried continual insurance coverage. This does not apply if you were without a vehicle during the lapsed period.
9. Multiple Car/Other Policies – if you have more than one car on your policy your premiums will be lower, also if you purchase other types of insurance through the same company more discounts will apply.
10. Vehicle Safety – if you car has certain safety features like auto shut off, anti theft devices, air bags, etc. your premiums will be lower.
11. GPA – for students attending school away from home a GPA of 3.0 or higher lowers your premiums with some insurers.
12. Defensive Driving – in New Jersey, if you have attended a defensive driving course the law requires insurers to offer a discount.

Finding Cheap New Jersey Auto Insurance Quotes

New Jersey is one of the most expensive states to hold auto insurance in with a state average of $1400 a year. That is about $600 more than the national average. As such, it will behoove you to continually check on insurance rates and go with the least expensive insurance company. You are not obligated to wait until your policy expires before starting a new one, you may cancel at any time. So, make sure that you are getting the lowest premium rates in New Jersey and use our free NJ car insurance quote tool at the top of the page to see the latest quotes available at this time.