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New Jersey Car Insurance

If you are in New Jersey, there are several important things you should be aware of in the car insurance industry. New Jersey car insurance is broken into two categories: standard and basic. There are marked differences between these car insurance New Jersey options. Standard car insurance New Jersey is a comprehensive policy. It offers full coverage and is an ideal choice for your car. Basic coverage is known for its limited coverage. You cannot count on basic during your tough times. According to experts, you should always go for a standard car insurance New Jersey policy.

In this short article, you will read about cheap car insurance New Jersey and everything you need to about auto coverage in the state. Remember, car insurance in the United States of America differs from one state to another. Policies in New Jersey may not be found elsewhere. So, you should understand your state for better deals and top notch discounts.

New Jersey Car Insurance Rates by ZIP Code & City
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Car Premiums New Jersey

In general, car premiums cost around 1346 USD per year. Car insurance service providers take many factors into consideration before making a quote. Just like many other states, they will evaluate risk and come up with an ideal quote. The quote differs from one driver to another. In New Jersey, the following factors are taken into consideration:

  • Your age
  • Your driving history. People with good driving records are more likely to receive better deals and discounts.
  • Frequency of claims in your city. With more claims, yours premiums are likely to become bigger.
  • The kind of vehicle you own
  • The variables used by the car insurance service provider

In New Jersey, the car insurance rates differ from one city to another. The cost of car insurance in your city should be identified using its ZIP code. By shopping around for cheap car insurance New Jersey, you can save as much as 1600 USD. After all, the most expensive city in New Jersey has car insurance for 2400 USD. And, the cheapest car insurance is 1090 USD. By understanding the highest and lowest rates in your city, you will be able to strike a good bargain. There are plenty of service providers in New Jersey with affordable and reliable deals. Using their services becomes easier, when you understand the auto insurance market, its deals and discounts.

In New Jersey, you can choose coverage from six different age groups and three coverage categories.

Most & Least Expensive ZIP Codes in New Jersey
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Requirements in New Jersey

If you are planning to buy auto insurance in New Jersey, you should have a minimum property injury liability of 5000 USD. And, your personal injury protection should be 15,000 USD. With basic coverage, you will be able to drive around the Garden state only. The basic policy is the cheapest in New Jersey. As mentioned previously, it will not cover you fully. Basic car insurance in New Jersey is difficult to find. That is because most auto insurance companies sell standard policies.

Basic car insurance in New Jersey has the following features:

  • You will receive a property damage coverage of 5,000 USD.
  • You will receive a personal injury coverage of 15,000 USD. Regardless of who caused the accident, you will be provided with PIP. This makes basic auto insurance in New Jersey a no-fault coverage. The insurance kicks into the picture at all times. It doesn’t depend on who caused the accident. Even if you are driving your friend’s vehicle, PIP will cover you!

Basic car insurance New Jersey takes care of small damages and injuries. If you have a very low income, this policy can help you. Luckily, you can add 10,000 USD to your basic insurance policy. Even with extra money, the basic auto insurance coverage handles only minor issues. When bigger accidents happen, you are more likely to be sued.

Minimum requirements for standard auto coverage in New Jersey are as follows:

  • Minimum bodily injury liability costs between 15,000 and 30,000 USD.
  • Minimum property damage liability costs around 5,000 USD.
  • Minimum coverage for uninsured and underinsured bodily/property damage can be 15,000 or 30,000 or 5,000 USD.
  • Minimum personal injury projection of 15,000 USD.

New Jersey gives drivers the freedom to sue. You have a minimum and a maximum limit to sue. If you have a standard car insurance policy, you will be able to sue anyone! Regardless of the accident, you will be able to sue.

Both the policies offer medical coverage. If your medical coverage is insufficient, PIP would come into the picture. When your PIP is the unable cover, the bodily injury liability will help you. Irrespective of the limits, the PIP can take care of bills that are as high as 250,000 USD. This means severe injuries like brain damage can be covered. Once again, the terms and conditions are determined by the auto insurance provider. You must talk to your agent for more details!

Collision and Comprehensive Coverage

By definition, collision coverage takes care of all damages caused by an accident. If your car is severely damaged, collision coverage can lend you a hand of help. In New Jersey, collision coverage costs around 356 USD. This figure is quoted by the Insurance Information Institute.

Comprehensive insurance helps in recovering your car after a flood, theft, vandalism or flood. In New Jersey, Comprehensive Coverage costs around 118 USD.

Here are two important situations, where collision and comprehensive coverage can help you:

  • If your car is less than 10 years old. And, if your car needs hundreds of dollars for fixing small repairs.
  • If your car is more than 10 years old but worth more than 3,000 USD.

Uninsured or underinsured motorist

New Jersey has many unique rules. For example, the uninsured and underinsured coverage is required in the State of New Jersey. This insurance policy is required when your car is hit by an underinsured or an uninsured driver. Accidents can be expensive affairs. And, things become worse when your car is hit by a poorly insured person. To play safe, you need this insurance coverage.

Gap Insurance

This is an important insurance in the State of New Jersey. This car insurance New Jersey policy will bridge the gap between your repair bills and the outstanding amount. The insurance helps people who finance or lease vehicles. People with heavy loans find gap insurance handy. It helps them handle their finances safely. Though gap insurance policies are useful, you can choose to decline! Here are three different cases to consider:

  • Have you financed your car completely? If yes, you don’t need gap insurance.
  • Have you paid less than 20% as down payment for your new car? If yes, you must buy gap coverage.
  • Have you leased your vehicles? If yes, you must buy a gap insurance policy.

Laws in the New Jersey

Speeding?

New Jersey car insurance service providers determine insurance rates based on the driver’s previous records. People with good driving records will receive good discounts. Meanwhile, drivers with speeding tickets must pay 27% (at least) more. With every speeding ticket, your driving record would receive a point. If you have fewer points, you are lucky! To reduce your premiums, you must be a good driver.

Speed Limits in New Jersey


Rural Interstates


Cars (MPH) Trucks (MPH)
65 65

Urban Interstates


Cars (MPH) Trucks (MPH)
55 55

Other Limited Access Roads


Cars (MPH) Trucks (MPH)
65 65

Points and surcharges

In New Jersey, every driver receives points with a mishap. If you have six points in three short years, you will be asked to pay a surcharge. You will be fined 150 USD. If you have more than 12 points, your license will be suspended. With more violations, your insurance premiums will increase. Points have a direct impact on your insurance rates. People with poor driving skills should exert lots of effort in improving their record. This process can take several years; if not several decades!

Special auto insurance policy

New Jersey has a special auto insurance policy (SAIP) for low-income drivers. If you have a Medicaid policy and is hospitalized, you will qualify for SAIP immediately. This policy costs 356 USD every year. The following situations are covered by SAIP:

  • Emergency accidents
  • Brain or other severe health issues. The insurance policy covers up to 250,000 USD.
  • A death benefit of 10,000 USD.

Points

New Jersey follows a point based insurance system. With every point, your chances of bagging a food discount vanishes! In fact, minor traffic violations can add points to your record. And, it takes several years to remove points from your history.

Conclusion

On the whole, people with good driving records will gain amazing deals and discounts from auto insurance providers New Jersey. Drivers are carefully monitored by insurance providers in the State. It takes lots of time to build a strong driving record. But, it is not impossible. If you are a young driver, you have plenty of time for promising insurance policies. Young drivers are given 3 inexperience points. These points are reduced on a yearly basis. To play safe and get good insurance plans, you must have less than 7 points on your record.

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