Auto Insurance in New Jersey: Everything You Need to Know

by

If you’re a driver in New Jersey, you know that car insurance is a must-have. But with so many options and providers out there, it can be tough to know where to start. In this comprehensive guide, we’ll break down the basics of auto insurance in New Jersey, so you can make an informed decision about coverage and pricing.

Table Contents show

What Makes Auto Insurance in New Jersey Different?

New Jersey is one of twelve states that operates under a no-fault insurance system. This means that when you’re involved in a car accident, your own insurance company is responsible for covering your medical expenses and any lost wages. While this system can make it easier to file a claim, it also means that you’re limited in your ability to sue the other driver for damages.

In addition to this unique system, New Jersey also has some of the highest insurance rates in the country. This is due in part to the state’s high population and traffic density, as well as its proximity to major cities like New York and Philadelphia.

What Types of Coverage Are Available?

When you’re shopping for auto insurance in New Jersey, you’ll need to consider a few different types of coverage. These include:

Coverage Type
What It Covers
Bodily Injury Liability
Covers the cost of injuries to other drivers or passengers in an accident you caused
Property Damage Liability
Covers the cost of damage to another person’s property (such as their car) in an accident you caused
Personal Injury Protection (PIP)
Covers your own medical expenses and lost wages in case of an accident, regardless of who was at fault
Collision Coverage
Covers the cost of repairs or replacement if your car is damaged in an accident
Comprehensive Coverage
Covers the cost of repairs or replacement if your car is damaged by something other than an accident (such as theft or weather damage)
Uninsured/Underinsured Motorist Coverage
Covers you if you’re in an accident with a driver who doesn’t have enough insurance to cover the damages

In addition to these basic types of coverage, you may also be able to add on extras like roadside assistance or rental car reimbursement.

How Are Auto Insurance Rates Determined?

The cost of your auto insurance policy will depend on a variety of factors, including:

  • Your driving record
  • Your age and gender
  • The make and model of your car
  • Your location in New Jersey
  • The level of coverage you choose

Generally speaking, younger drivers and those with a history of accidents or traffic violations will pay more for insurance. If you have a newer or more expensive car, you may also pay higher premiums.

FAQ

Is Car Insurance Required in New Jersey?

Yes, all drivers in New Jersey are required to have auto insurance. The state minimums for coverage are $15,000 for bodily injury liability per person, $30,000 for bodily injury liability per accident, and $5,000 for property damage liability.

What Happens If I’m in an Accident with an Uninsured Driver?

If you’re in an accident with a driver who doesn’t have insurance, your own uninsured motorist coverage will kick in to cover your damages. However, keep in mind that this coverage is only available up to the limits you’ve set for yourself.

Can I Get a Discount on My Auto Insurance?

Yes! Many insurance providers offer discounts for things like safe driving, bundling multiple policies (like home and auto), and installing safety features like anti-lock brakes or a security system on your car.

What Should I Do If I’m In an Accident?

If you’re involved in a car accident in New Jersey, here are the steps you should take:

  1. Check to make sure everyone is OK and call 911 if there are any injuries
  2. Move your car to a safe location out of traffic if possible
  3. Exchange insurance and contact information with the other driver(s)
  4. Take photos of the damage and any injuries
  5. Call your insurance provider to report the accident

By following these steps and having the right insurance coverage in place, you can protect yourself and your finances in the event of a car accident in New Jersey.

Rekomendasi: