Everything You Need to Know About Car Insurance in NJ

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Car insurance is a must-have for all car owners in New Jersey. It not only protects you and your vehicle, but it’s also a legal requirement. Choosing the right car insurance policy can be overwhelming, but it’s important to understand the basics before making a decision. In this article, we’ll cover everything you need to know about car insurance in NJ.

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What is Car Insurance in NJ?

Car insurance is a contract between you and your insurance provider that protects you financially in the event of an accident, theft or damage to your car. In NJ, car insurance is mandatory and drivers are required to carry liability insurance that covers damages to other people’s cars and property in the event of an accident.

There are several types of car insurance coverage options available in NJ to meet your specific needs. Some of the most common types of coverage include:

Type of Coverage
Description
Liability Insurance
Covers damages caused to others in an accident
Collision Insurance
Covers damages to your car in an accident
Comprehensive Insurance
Covers damages to your car from non-accident related incidents such as theft, vandalism or natural disasters
Uninsured/Underinsured Motorist Insurance
Covers damages caused by another driver who doesn’t have enough insurance coverage
Personal Injury Protection (PIP)
Covers medical expenses for you and your passengers in the event of an accident

How Much Car Insurance Do You Need in NJ?

The minimum amount of liability coverage required in NJ is $15,000 per person and $30,000 per accident for bodily injury, and $5,000 for property damage. However, it’s important to note that this is just the minimum coverage required by law and you may want to consider purchasing additional coverage to protect your assets in the event of an accident.

When determining how much car insurance you need in NJ, consider factors such as the value of your car, how much you drive, where you live and your personal financial situation.

Factors to Consider When Choosing Car Insurance in NJ

When choosing car insurance in NJ, there are several factors to consider. These include:

Driving Habits

If you have a long commute or drive frequently, you may want to consider higher coverage limits to protect yourself and your car in the event of an accident.

Vehicle Value

If you have a high-value car, you may want to consider additional coverage such as collision and comprehensive to protect your investment.

Personal Finances

If you have significant assets such as a home, savings or investments, you may want to consider higher liability coverage limits to protect yourself in the event of a lawsuit.

How to Find Affordable Car Insurance in NJ

Getting affordable car insurance in NJ doesn’t mean you have to sacrifice coverage. Here are some tips to help you find affordable car insurance:

Shop Around

Compare quotes from multiple insurance providers to find the best rate. Make sure you’re comparing similar coverage options to get an accurate comparison.

Bundle Policies

Many insurance providers offer discounts for bundling multiple policies such as home and auto insurance.

Ask About Discounts

There are many discounts available to drivers such as good driver discounts, student discounts and multi-car discounts. Ask your insurance provider what discounts are available to you.

Consider Higher Deductibles

Choosing a higher deductible can lower your monthly premiums but it’s important to make sure you can afford the deductible in the event of an accident.

FAQs

What Happens if You Drive Without Car Insurance in NJ?

Driving without car insurance in NJ is illegal and can result in fines, license suspension, and even jail time. Additionally, if you’re involved in an accident without insurance, you could be held personally responsible for any damages or injuries caused.

What Does Personal Injury Protection (PIP) Cover in NJ?

PIP coverage in NJ covers medical expenses for you and your passengers in the event of an accident regardless of who was at fault. It can also cover lost wages and other related expenses.

Do You Need Collision and Comprehensive Coverage in NJ?

Collision and comprehensive coverage is not required by law in NJ, but it’s recommended if you have a high-value car or if you want to protect yourself from non-accident related incidents such as theft or vandalism.

What Should You Do if You’re Involved in an Accident in NJ?

If you’re involved in an accident in NJ, make sure everyone is safe and call the police to file a report. Exchange insurance information with the other driver and take photos of the damage. Notify your insurance provider as soon as possible to file a claim.

Car insurance in NJ is a must-have for all car owners. Make sure you have the right coverage to protect yourself and your vehicle. By understanding the types of coverage available and shopping around for the best rate, you can find affordable car insurance that meets your specific needs.

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