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Facts about Car Insurance in New Jersey

The state of New Jersey requires all vehicle owners to carry car insurance. Your policy must include, at a minimum, $5,000 in property damage liability coverage, to cover third-party damage if you cause an accident; $15,000 in personal injury protection (PIP), to cover injuries sustained by you and your passengers, regardless of fault; and $250,000 in serious injury coverage.

More New Jersey car insurance facts

Every year, there are about 270,000 collisions in NJ.
Of these, approximately 62,000 involve injuries.
Accidents in NJ average $18,000 in damage and injuries.
NJ drivers collect about $4.86 billion in claims per year.

What Does Your Car Insurance Policy Cover?

Failure to carry insurance carries very harsh penalties in New Jersey. These include fines up to $5,000, required community service, a one- to two-year suspension of your license, and court costs and fees. A second offense comes with a minimum sentence of 14 days in jail. When purchasing car insurance, NJ drivers can choose a basic policy or a standard policy. Basic policies are less expensive, but provide more limited coverage than standard policies. A typical car insurance policy includes:

Property damage liability (required): This covers the cost of third-party property damage if you cause an accident. Your policy must have a minimum of $25,000 worth of property liability coverage.
Personal injury protection (PIP) (required): This covers medical treatment for you and your passengers if you are injured in an accident. You must have at least $15,000 in PIP coverage as well as $250,000 in serious injury coverage.
Bodily injury liability (optional): This covers injuries sustained by people not in your car if you cause an accident. A standard policy includes at least $15,000 per person, and $30,000 per accident worth of coverage; but a basic policy does not include this coverage.
Collision coverage (optional): This can cover the cost to repair or replace your vehicle if it is damaged in a collision, regardless of who was at fault. It is typically required by your lender if you are still paying for your vehicle.
Comprehensive coverage (optional): This can cover the cost to repair or replace your vehicle if it is damaged by a non-collision event such as a falling object, hurricane, flood, or property crime. This is usually required by lenders.

If you currently owe more for your vehicle than it is worth, you may want to talk to your insurance agent about how gap insurance can provide an added layer of protection in the event that your vehicle is totaled.

Top Insurance Companies That Support Independent Agents in New Jersey

There are currently 485 independent insurance agents in New Jersey who are ready to help. Independent agents are free to work with several different insurance providers, so they can acquire a variety of customized car insurance quotes that you can review and compare together. Let a local independent agent help you find the most affordable policy to meet your auto coverage needs.