New Jersey car insurance: When it comes to vehicle ownership in New Jersey, car insurance is an essential aspect. This is because it provides financial protection and meets the state regulations at the same time. Even though New Jersey is among the most highly populated states in the United States, it has certain car insurance requirements that car owners must follow.
Hence, when you understand the requirements and how you can compare quotes, you will have no trouble making the right decision for your needs.
Type of Car Insurance Every Motor Vehicle in New Jersey Should Have
There are multiple and different types of car insurance policies. However, here are the minimum types and levels of coverage you need to have legally to use a car or vehicle in New Jersey. They include:
In New Jersey, all drivers are required to carry a minimum level of car insurance to legally operate a vehicle. The state mandates that your insurance policy includes the following:
Liability Coverage
This form of coverage is responsible for damages caused by the policyholder to other parties in an accident. In New Jersey, you need a minimum of:
- Property Damage Liability: $25,000 per accident.
- Bodily Injury Liability Coverage: $25,000/person, $50,000/accident
Uninsured/Underinsured Motorist Coverage
Uninsured/underinsured motorist coverage offers protection to you if you are involved in an accident with a party who has no or insufficient insurance coverage. The minimum requirement in NJ is:
- Uninsured: $25,000 per person, $50,000 per accident
- Underinsured: $25,000 per person, $50,000 per accident
Personal Injury Protection (PIP)
This form of auto insurance coverage covers the medical expenses for you and your passenger, regardless of who is responsible or at fault. In New Jersey, you need a minimum of:
- PIP Coverage: $15,000 per person per accident.
How Much Is Car Insurance in New Jersey?
According to MoneyGeek, the average cost of auto insurance in New Jersey is around $124 per month. While the national average for full-coverage car insurance is around $85 monthly, New Jersey drivers face higher premiums. Personal factors such as vehicle, driving record, and location also greatly influence insurance costs.
Factors Affecting Car Insurance Rates in New Jersey
Here are several factors that can affect and influence your auto insurance rates in New Jersey:
- Vehicle type.
- Driving record.
- Coverage options.
- Location.
- Credit score.
The insurance company you choose to purchase a policy with also determines the cost of car insurance in NJ for you.
Do You Need a Policy in New Jersey?
Certainly, to operate and own a car or vehicle in New Jersey, you need to have a car insurance policy legally. However, if you do not meet these requirements, there are significant penalties associated, for instance, vehicle impoundment, fines, and license suspension. Besides, having a policy safeguards you in case of damage and accidents financially.
How to Get Car Insurance in New Jersey
Getting a car or auto insurance policy in New Jersey involves different steps. Although the procedure might differ depending on the insurance company, here is a general guide you can follow to proceed:
- Research Insurance Companies
First, start by researching different insurance providers and their services. It is important that you search for reputable insurers with strong customer service and positive reviews from existing customers.
- Prepare Information
Gather all the necessary information and documents, like your vehicle details, driver’s license number, driving history, and others.
- Gather Policies
Reach out to insurance providers to ask for policies based on your circumstances and needs specifically.
- Compare Quotes
Before choosing a policy or quote from an insurance company, you need to compare them by evaluating their deductibles, coverage options, and premiums.
- Buy the Policy
After comparing the necessary factors, select a quote that meets your budget and needs. Finish up the application process and pay your first premium to activate the insurance policy.
How to Compare Insurance Quotes in New Jersey
To make sure that you are getting the best deal on auto insurance in New Jersey, here are some helpful strategies you can use to compare quotes:
- Gather different policies.
- Make use of comparison websites.
- Compare coverage levels.
- Check the deductibles.
- Ask for available discounts.
Consider the claim handling and reputation of the insurance company.
By doing this, you do not only get to enjoy the best deals but also save on your purchase. In other words, you can spend less and still get sufficient or enough coverage for your current needs and budget.
What to Do After a Car Accident in New Jersey
If you are a car owner based in New Jersey and you are involved in an accident, here are the steps you need to follow:
- Ensure the safety of the involved parties and check for injuries.
- Move to a safer location.
- Call the police to report the accident.
- Get an official report.
- Exchange insurance and contact information with the involved party.
- Collect phone numbers, names, vehicle details, addresses, and driver’s vehicle numbers.
- Take videos and photos of the scene.
- Report to your insurance company immediately.
- Provide the documentation and information gathered.
Follow up after you file a claim and provide additional details if required by the insurance provider to finish up the process. Once it is approved, you will get reimbursed, and the damages and injuries sustained will be covered.
Frequently Asked Questions
What happens if I drive without insurance in New Jersey?
If you are a car owner in NJ and you are driving without auto insurance coverage, there are penalties involved. These include license suspension, fines, and vehicle impoundment. You will also be held financially responsible for any injuries or damages from an accident.
Can I use my car insurance policy from another state in New Jersey?
No, it is not possible for you to use your car insurance policy from another state in New Jersey. This is because you need to have a policy that meets the coverage requirements of NJ if you are driving or residing in the state.