Auto Insurance NJ: Everything You Need to Know

Auto insurance in NJ is a legal requirement for all drivers. It can be confusing to understand all the different coverage options and requirements. This article will provide you with a complete guide to auto insurance in NJ, including what coverage you need, how to save money, and frequently asked questions.

What is Auto Insurance?

Auto insurance is a contract between you and an insurance company that provides financial protection in case of an accident or theft. In exchange for your monthly premiums, your insurance company will cover the cost of damages to your car or any other vehicles involved, medical expenses, and liability claims.

It’s important to note that NJ requires drivers to have liability insurance coverage at minimum. Liability coverage pays for damages or injuries you cause to others in a car accident. It does not cover damages to your own vehicle or injuries you sustain in an accident.

Here are some common types of auto insurance coverage:

How Much Auto Insurance Do You Need in NJ?

As mentioned before, NJ requires drivers to have liability coverage at minimum. The state minimums for NJ auto insurance are:

• $15,000 for bodily injury per person
• $30,000 for bodily injury per accident
• $5,000 for property damage per accident

However, it’s recommended that you have more than the minimum liability coverage to protect yourself financially in case of an accident. The higher your coverage limits, the more protected you are in case of a serious accident.

How to Save Money on Auto Insurance in NJ?

Auto insurance can be expensive, but there are several ways to save money on your premiums. Here are some tips:

• Shop around for quotes from different insurance companies to find the best rate
• Bundle your auto insurance with other types of insurance like homeowners or renters insurance to save money
• Take advantage of discounts like good driver, good student, or low mileage discounts
• Increase your deductible to lower your monthly premiums, but make sure it’s a deductible you can afford in case of an accident

FAQs

What happens if you drive without auto insurance in NJ?

Driving without auto insurance in NJ is illegal and can result in penalties like fines, license suspension, and even jail time. In addition, if you cause an accident without insurance, you will be responsible for paying for damages and injuries out of pocket.

Does NJ have no-fault insurance?

No, NJ is not a no-fault state. This means that in case of an accident, each driver’s insurance company pays for their own damages and medical expenses, regardless of who is at fault.

What is the average cost of auto insurance in NJ?

The average cost of auto insurance in NJ is around $1,500 per year. However, your individual cost will depend on factors like your age, gender, driving record, and the type of car you drive.

Can you get auto insurance if you have a bad driving record?

Yes, you can still get auto insurance if you have a bad driving record, but your premiums will likely be higher. Some insurance companies specialize in high-risk drivers and may offer specialized coverage options.

What should you do if you get into a car accident in NJ?

If you get into a car accident in NJ, here are some steps to follow:

1. Check for injuries and call for medical help if needed
2. Call the police to file an accident report
3. Exchange contact and insurance information with the other driver(s)
4. Take photos of the accident scene and damages
5. Call your insurance company to report the accident and file a claim

Auto insurance in NJ can be confusing, but it’s important to have the right coverage to protect yourself financially in case of an accident. Use this guide to make informed decisions about your auto insurance coverage.