New Jersey Auto Insurance Guide

New Jersey Minimum Auto Insurance Requirements

Get New Jersey Auto Insurance State Guides, Laws and Regulations before You Buy Insurance

Auto insurance is mandatory in New Jersey. At the bare minimum, NJ drivers must carry liability insurance. This covers your financial responsibility for damage you may do to others, or their property. This is called a “basic policy,” and can be bought from any insurer licensed to do business in the state.

Full coverage is not required by any NJ law, but many drivers feel more comfortable protecting their investment with this type of policy. In addition to your monetary responsibility for damages you cause, these policies help pay for damage to your vehicle caused by things like weather, theft, and uninsured drivers.

Key Takeaways

New Jersey law requires that you cover liability coverage of $15,000 / $30,000 / $5000. That means:

• The insurance will pay $15,000 for injury to another person
• Up to $30,000 if more than one person is hurt
• And $5,000 of property damage

Introduction to New Jersey Auto Insurance Requirements

New Jersey auto insurance minimums exist to protect drivers financially in case of an accident. But many drivers feel they need more coverage than the state minimum. That’s because our modern vehicles are faster than ever, and more capable of causing damage to other people and their property.

NJ Auto Insurance Coverage Descriptions

New Jersey only requires that drivers carry a minimum of liability coverage. But other coverages are available. If you have a car payment or other lienholder, they may require that you carry “full coverage.”

• Collision coverage pays for damage to your vehicle if you collide with anything, whether it’s another vehicle, a tree or a wall.
• Comprehensive coverage pays for other types of damage to your vehicle, like hail, fire or theft.
• Glass coverage is generally available in NJ. This comes with a separate deductible, because windshields are expensive and delicate.

New Jersey Minimum Auto Insurance Requirements

$15,000 to $30,000 Personal Injury

This coverage helps to pay for medical care for one person who is injured. But it may not be enough coverage. With these limits, medical costs above $15,000 for one person, or $30,000 for two or more people become the responsibility of the at-fault driver.

$5,000 Property Damage Liability (PDL)

Most vehicle accidents cause some amount of property damage, whether it’s to other vehicles on the road, real estate, or another person’s belongings. This coverage pays for these damages. If these damages are more than $5,000, the at-fault driver will need to pay the difference.

Does New Jersey Require Uninsured / Underinsured Motorist Coverage?

No. As of 2022, NJ drivers aren’t required to have this coverage. However, it’s included in most full-coverage packages, and might be available as an add-on or endorsement.

New Driving Laws in New Jersey

The Safe Passing Law is new as of 2022. If you see a vehicle pulled over on the shoulder, New Jersey drivers are required to change lanes if possible, or slow down and create at least four feet of space for safe passing. If you cannot create four feet of space, NJ drivers must slow down to 25 mph or less to pass the vehicle safely.

Penalties for Failure to Carry New Jersey Auto Insurance

New Jersey takes auto insurance regulations very seriously, and the penalties can be severe. The first time you’re found driving without insurance, your fine will be anywhere from $300 to $1,000, PLUS community service and a license suspension.

After that, you’ll be required to pay $250 every year for the next three years, totaling $750, in additional fines.

NJ drivers won’t accrue points on their license for the first instance of driving without insurance. However, after that, you will get nine (9) points on your driver’s license. This will make auto insurance awfully expensive.

How to Get the Cheapest New Jersey Auto Insurance

Most auto insurance will slowly increase your premium (price) over time. This is a marketing tactic, not your imagination. Therefore, it makes sense to call around and shop for auto insurance ever few years. Insurers will try to gain your business by offering a more competitive price.

Other ways to decrease your costs for NJ auto insurance are:

• Increasing your deductibles if you have full coverage: The higher your deductible, the less your insurance will cost. However, this doesn’t apply to liability-only policies, and your lienholder may require you to carry a lower deductible.
• Shaving away extra bells and whistles on your policy: For instance, if you own several vehicles, you may not need rental car reimbursement coverage.
• Seeking a “bundle” if you have several insurance policies: Insurers may offer you a discount if you have several types of insurance with one provider.
• Buying a price-per-mile policy: These auto insurance policies are best for low-mileage drivers who don’t drive much. Be prepared to report your mileage several times a year to the insurer.

Read More: 8 Simple Ways to Save You 90% On Your Car Insurance

New Jersey State Auto Insurance Premiums

Insurance companies rate drivers and vehicles by their risk level. Electric vehicles (EVs), fast foreign cars, very heavy vehicles, and unsafe drivers tend to cost the most to insure. When creating your contract and deciding on your premium, insurers will consider:

• Age
• Gender
• Marital status
• Type of vehicle
• Value of vehicle
• Age of vehicle
• Years of driving experience
• Prior history of claims
• Points on your license
• Tickets, moving violations and DUI
• Your zip code and garage location

NJ Auto Insurance Rates by Carrier

We scoured the web to find the best New Jersey auto insurance rates. However, your final price will depend on the issues listed above.

For help finding New Jersey auto insurance quotes, contact us today or simply put your zip code below and hit “Get A Quote” !