Here is a common question that often leaves drivers puzzled: Does car insurance follow the car or the driver? Navigating the complexities of car insurance regulations in New Jersey requires a nuanced understanding. As Trusted Choice independent insurance agents specializing in the insurance laws of the Garden State, we're here to shed light on this and other insurance-related questions.
Do You Need Car Insurance?
Click to Get a QuoteUnderstanding New Jersey Car Insurance
The average cost of car insurance in New Jersey was $1,754 for full coverage in 2023. For those opting for minimum coverage, the average cost was $782 annually [1]. These figures underscore the cost of car insurance and the importance of understanding how your insurance coverage works.
New Jersey Car Insurance Basics
Does Insurance Follow the Car or the Driver? - In most states, including New Jersey, car insurance typically follows the car rather than the driver. This means that the primary coverage is linked to the specific vehicle, highlighting the need for comprehensive protection tailored to your car's unique circumstances.
New Jersey's No-Fault System - Adding a layer of complexity, New Jersey operates under a no-fault insurance system. This system ensures that, in the aftermath of a car accident, each driver's insurance covers their own medical expenses, irrespective of fault. Under this arrangement, the Personal Injury Protection (PIP) coverage of the policyholder serves as the initial source of coverage, extending to both the driver and passengers.
Permissive Use - While the primary focus is on the vehicle, the concept of "permissive use" is important to consider. If you lend your car to someone with your permission, your insurance generally extends to cover them as well. Always review the specific terms of your policy with your Trusted Choice independent insurance agent to ensure adequate coverage for permissive use situations.
Non-Owner Insurance - For those who don't own a car but frequently borrow or rent vehicles, non-owner car insurance may be useful. This policy type provides liability coverage when driving a borrowed or rented vehicle, bridging potential gaps in coverage when the driver's insurance doesn't apply.
Working with a New Jersey Independent Insurance Agent
Understanding how car insurance functions in New Jersey requires comprehensive knowledge of intricacies such as the no-fault system, permissive use, and the financial landscape, underscoring the need for tailored protection.
Your Trusted Choice independent insurance agent is here to guide you through these intricacies. Their goal is to customize a policy that aligns with your specific needs and provides the confidence and peace of mind you deserve on the roads of the Garden State. Whether you're a car owner or a frequent borrower, ensuring the right coverage is in place is pivotal for a secure and well-protected journey.
Your local Trusted Choice independent insurance agent can help you compare car insurance quotes, explore your options, including auto insurance discounts, and find a policy that suits your needs. New Jersey independent insurance agents take the time to discuss exactly how much coverage is necessary and help you assess your coverage requirements, factoring in your budget to find a policy that fits your specific circumstances.
Trusted Choice independent agents act as your own personal insurance shoppers, offering you more options than one-policy companies. With just one call, they’ll start gathering multiple quotes for you to review to ensure you get the right coverage at the right price.
And, because they’re your dedicated agent, they’re not just there at the beginning. They're also there to help walk you through the claims process and make sure you’re getting the benefits you're entitled to should an event occur.
[1] Quadrant Information Services as reported by bankrate.com (https://www.bankrate.com/insurance/car/new-jersey/#find)
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