If you live in New Jersey and have a vehicle, then you already know that you need to have some type of auto insurance coverage. This guide will help you understand auto insurance in New Jersey so that you’ll have a better idea of what type of policy you want to buy.
Ask for several quotes. As with any purchase, when you’re shopping for auto insurance in New Jersey, you should search for the best price before you settle on any one policy. This is because every car insurance company will offer you slightly different premiums and coverage. Talk to at least 3 or 4 different companies so that you can get the best price and terms for your auto insurance policy. The phonebook or the yellow pages will help you find auto insurance companies in your area. And you can also check out these sites online:
An auto insurance policy in New Jersey will run you about $1150 for a year.
Understand what type of coverage is required. Unlike most other states, New Jersey doesn’t set out specific liability coverage minimums. Drivers are, however, required to carry three types of auto insurance coverage: liability coverage, personal injury protection (PIP) and uninsured motorists’ coverage. The state of New Jersey recommends that you have basic coverage in the following amounts: $15,000 for personal injury protection, $10,000 for all bodily injury, and $5000 for property damage. As well, New Jersey recommends that you carry up to $250,000 for significant or permanent injury (as defined in your policy).
If you opt for the more comprehensive standard policy, the state of New Jersey suggests that you carry $15,000 for single bodily injury, $30,000 for all bodily injury, $5,000 for property damage along with up to $250,000 for significant or permanent injury. Again all of these amounts are suggested rates. You have the option of choosing any level of coverage you like. Just keep in mind that any accident fees that exceed your policy limits will have to be paid for out of your pocket. More coverage is obviously a good idea.
You have the option of excluding drivers from your policy. In New Jersey, you can opt to exclude certain drivers in your household from your insurance policy. However, this removes any possibility that your insurance company will cover a claim submitted by any of those drivers in the event of an accident. So it’s a good idea to insure anyone driving your car.
Know your rights and responsibilities as a driver in New Jersey. New Jersey is one of the few ‘choice’ states in the United States. This means that drivers can choose to reject the ‘no fault’ system and use the ‘tort’ system. If drivers choose to operate under the tort system, they can sue an at-fault driver for any and all fees related to an accident. Make sure you understand what you will be responsible for paying before you agree to an auto insurance policy in New Jersey.