New Jersey Car Insurance

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Key takeaways...
  • New Jersey has two different policy requirements
  • The state requirements are very minimal so you should consider increased limits
  • Many car insurance companies are authorized to sell insurance in New Jersey

Minimum state requirements are a little different in New Jersey than most states as there are actually two types of different minimum policy requirements.

When the Automobile Insurance Cost Reduction Act was passed it provided an option for those drivers with fewer family obligations and/or real assets to obtain lower minimum car insurance coverage than previously required.

Enter your zip code into our free car insurance rate comparison tool above to find the best price for the coverage you need.

New Jersey Requirements

Although minimum requirements certainly do help lower the cost of car insurance for some people, any wise driver will always get more coverage.

In New Jersey, the law requires every driver to have one of two options.

Option A – Standard Policy (most drivers)

  • $15,000 in bodily injury liability per person / $30,000 per accident
  • $5,000 in property damage liability
  • $15,000 in personal injury protection per person
  • $15,000 in uninsured/underinsured motorist coverage per person / $30,000 per accident

Option B – Basic Policy

The basic policy is hardly any coverage at all with the only requirements being:

  • $5,000 in property damage liability
  • $15,000 in personal injury protection per person

Under the basic policy, you can also opt for $10,000 in bodily injury liability and add a small amount of collision and comprehensive coverage but uninsured/underinsured motorist coverage is not available.

Can I sue another driver who caused an accident in New Jersey?

New Jersey has a no-fault car insurance system in place, however, a driver has to choose whether or not to give up the future right to sue.

You must indicate your choice when obtaining your auto insurance. There are two options:

  • Unlimited Right to Sue This choice allows you to retain the right of suing a driver for any injuries received from the accident.
  • Limited Right to Sue Divers who choose this option waive all rights to sue another driver for any injuries except for a handful of situations including death, fetus loss, and permanent injuries.

The theory behind these options is to help reduce the potential liability for car insurance companies which in turn would assist in lowering auto insurance rates.

How much coverage do you need?

Every driver should have coverage limits that reflect real costs. When a single hospital visit can be $50,000 or more and damage to a city sign can cost $10,000 or more having state minimum insurance of $5,000 or $15,000 is barely enough to provide comfort.

Most New Jersey car insurance companies provide coverage up to $250,000 for a relatively small increase in your premiums and although every driver may not require this much you should at least consider $100,000 or more in liability coverage per person.

New Jersey is one of the nations larger car insurance markets so you will find a vast number of companies who offer policies.

Most of the major brands such as Geico, State Farm, Allstate, and Progressive have a presence and then there are numerous local companies who specialize purely in New Jersey auto insurance.

Finding a New Jersey car insurance company will be easy so you need to shop, compare coverage, and choose a provider only after speaking with at least a handful of auto insurance companies.

It will be up to you to find the best rates and get all the car insurance discounts available.

Compare car insurance quotes right here using our free rate tool below. Enter your zip code to get started.

FREE Car Insurance Comparison

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