How to Get the Best Car Insurance Rates in New Jersey

June 05, 2017

compare new jersey insuranceYou can’t afford to be caught without insurance these days. Whether it’s health insurance, renters insurance, property insurance or car insurance, you’re always better off when you and your property have the right protection. We take a closer look at New Jersey car insurance comparison and rates in the state.

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:

  • $5,000 per accident to cover property damage to others
  • $15,000 personal injury protection per person
  • $250,000 per person, per accident, for personal injuries that are serious

You can also opt for a standard insurance policy, which adds the following:

  • $30,000 for bodily injury coverage in the case of multiple victims
  • $15,000 in bodily injury coverage per person, per 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.

And if your insurance doesn’t cover all of the claim, then you’ll be responsible for paying the remainder out of your pocket.

New Jersey Car Insurance Comparison Chart

New Jersey car insurance prices can vary greatly. The only way to know that you have the best price is to compare New Jersey car insurance rates. To illustrate the point, we have three examples of how big of a price difference may exist from carrier to carrier for the exact same coverage and protections. Which profile is most like you?

Elizabeth Allclear

New Jersey Car Insurance Comparison

  • Is a 44-year-old female
  • Owns a 2010 Chevrolet Malibu LS
  • Drives for pleasure
  • Owns a home and has a master’s degree
  • Is a low-risk driver with a clean driving record

Johnny Racer

Compare New Jersey Car Insurance Rates

  • Is a 21-year-old male
  • Finances a 2013 Honda Civic SI
  • Drives to work
  • Rents an apartment and graduated from high school
  • Has two speeding tickets on his record

Joe and Julie Average

New Jersey auto insurance rates

  • 41-year-old couple
  • Owns a 2012 Grand Caravan SE and finances a 2011 Mazda 6S
  • Drives to work
  • Owns a condo and both have bachelor’s degrees
  • Has minor tarnish on driving record

These are three real profiles that use Compare.com. You’ll notice that each person has more affordable options that are hundreds of dollars cheaper than the most expensive. Let’s dig into why there is such a big price difference.

Find your best New Jersey car insurance rate today

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 enter your zip code and compare auto insurance rates from 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 with regard to 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.

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

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 actually 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.

Liability, comprehensive, and collision … what’s the difference?

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, and is also known as liability insurance.

How your New Jersey car insurance rates are 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 best New Jersey car insurance rate is to compare. Let us do the hard work for you. We can perform a New Jersey car insurance comparison in just minutes. Enter your zip code to get started and see how much you could be saving.

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You could save up to 32% by using Compare.com!

Based on a survey of 100 California Residents. Average savings determined via a comparison of their selected policy against their self-reported annual premium.