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New Jersey Car Insurance Guide

You can’t afford to be caught driving without insurance. Join us as we compare New Jersey car insurance policies and see just how much rates may differ from company to company in this state. We can help you find the best car insurance quotes at the right price.

Basic Policy Coverage Requirements in New Jersey

In New Jersey, if you drive a motor vehicle, you are required to carry the following amounts of coverage:

  • $15,000 of bodily injury liability per person
  • $30,000 of bodily injury liability per accident
  • $5,000 of property damage liability per accident
  • $15,000 of personal injury protection (PIP) per person or accident

Though it may appear cheaper to opt for the bare minimum of required coverage, it might be a better idea to get a little more than that. That’s because even one accident can easily cause more damage than the basic coverage you carry.

If your insurance doesn’t cover the entire claim, you’ll be responsible for paying the remainder out of your pocket. It’s your responsibility to compare multiple car insurance quotes to find the right coverage with the best rates.

Find the Best Car Insurance Companies in New Jersey

New Jersey is known for their high car insurance rates. From a report released by the National Association of Insurance Commissioners (NAIC) in 2017, the most recent data shows that New Jersey holds the highest combined average premiums. In 2014 their average was $1,379.20. This is 40% above the national average across the states.

If you’re looking for the right car insurance company that can provide you with the best coverage, then you’ll want to take a few minutes to compare auto insurance rates from our multiple providers. The best way to save money is to know what options, and who offers the best rates to meet your needs.

New Jersey Car Insurance Laws

Living in New Jersey features its own unique challenges regarding car insurance. If you’ve just moved to the state, or you’re getting car insurance for the first time, you need to understand that insurance works here in a little different way from many other states in the United States. Find out more about its laws below.

New Jersey is a No-Fault State

Years ago, some states adopted a car insurance system that designated the state as either “fault” or “no fault.” The purpose is to determine whose insurance policy would be used first after an accident.

Traditionally, we presume that whoever is at fault for the collision would offer his or her insurance to cover any damages. That’s true for states that use the “fault” system, but it doesn’t work that way in a no-fault state.

States like New Jersey that have adopted the “no-fault” system require drivers involved in an accident to seek compensation for injuries and lost income from their own insurance policies regardless of who is deemed at-fault.

Limited Right to Sue as a Driver

Because New Jersey is a no-fault state, a driver can only pursue an injury claim directly against the driver at fault if the injury is serious, according to the state’s definitions of serious injury. The state classifies serious injuries as:

  • Dismemberment
  • Disfigurement or significant scarring
  • Displaced fractures
  • The loss of a fetus
  • Permanent injury

If the accident qualifies for a direct injury claim, then the injured party can recover damages for pain and suffering as well as other non-economic losses that are otherwise prohibited in a personal injury claim.

Although it’s a no-fault state, New Jersey gives consumers a choice when it comes to what type of policy they wish to purchase. For example, you can select the option of a limited right to sue, or unlimited right to sue.

When you choose a limited right to sue, your premiums will be considerably cheaper, but in exchange, you are forfeiting your right to sue another party for pain and suffering.

What’s the Difference Between Liability, Comprehensive, and Collision Coverage?

Car insurance companies aren’t trying to cause confusion. Rather, they’re giving you the ability to meet your state’s minimum coverage requirements. They can also provide options to get full coverage if you want it.

It’s not hard to become confused when insurance companies talk about liability, comprehensive and collision. But they’re fairly simple once you understand what these different types of coverage are for.

Optional coverage is designed to protect your own property, and it includes comprehensive, collision and underinsured/uninsured motorist coverage. Mandatory coverage exists to protect other people, also known as liability insurance.

How are Car Insurance Rates Calculated?

Depending on your age, gender, marital status, and your credit history, the premium for your auto insurance coverage is going to vary compared to your neighbor’s … even if the two of you drive the same vehicle. Your driving record also counts when determining your policy cost.

The following factors matter too:

  • The age of your vehicle
  • How long you’ve held your driver’s license
  • How many vehicles you have on your policy
  • Whether your neighborhood is a high- or low-crime area
  • Where you park your car (garage, street, gated community, etc.)

The only way you’ll know if you’re getting the cheapest car insurance rate in New Jersey is to compare. Let us do the hard work for you. We can perform an insurance quote comparison in just minutes, so start today.

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