New Jersey Car Insurance

new jersey

The state of New Jersey is a no-fault state requiring all drivers to provide proof of financial responsibility by purchasing car insurance. The only exception is for individuals who own fleets of 25 vehicles or more, in which case self-insurance is also a viable option. New Jersey car insurance laws are different than most states and has the information you need to understand the differences.

Minimum Car Insurance Rules in NJ

New Jersey offers drivers two options for satisfying financial responsibility. They can purchase a standard policy or a basic policy. The standard policy is the most common and has been a requirement for many years. The standard policy has a minimum limit of $15,000 per person and $30,000 per accident in bodily injury coverage as well as $5,000 in property damage liability. Drivers must have at least $5,000 in personal injury protection, for their own medical bills, and must carry at least $15,000 per person and $30,000 per accident in uninsured/underinsured motorist coverage.

These limits are incredibly low – much lower than those required by other states. Because of this, it is very difficult to understand why the state allowed legislation to create the basic policy. Drivers who have less income and fewer assets are allowed to purchase a basic policy, which only requires $15,000 in personal injury protection and $5,000 in property damage liability. Bodily injury liability in the amount of $10,000 can be added to the basic policy, but is considered optional.

While the state was probably trying to find a way to reduce the number of uninsured drivers on the road, the creation of the basic policy is something many still question. Responsible drivers will bypass the basic policy option and opt for standard coverage, hopefully increasing their liability limits during the purchasing process.

Additional coverage options, such as comprehensive and collision, can be added to either policy. Those options are designed to protect you against damage you cause to your own vehicle as well as to the losses you may experience due to theft or vandalism.

Your Right to Sue

New Jersey insurance law, while no-fault, does give drivers the option to choose whether they’d like to retain the right to sue another person in the event of a serious injury. The limited right to sue is the least expensive and by choosing this option drivers waive their right to sue another person for injuries related to a car accident. The only exceptions to this rule are accidents that involve permanent injury, death, or the loss of a fetus. You may also have the right to sue for loss of wages and other related expenses.

The second option is the unlimited right to sue, which allows you to retain your right to sue for any injury or damages related to an accident. This option usually comes with an incredibly high premium.

Let Help

The penalty for driving without insurance in New Jersey involves fines of at least $300, a year of license suspension, and community service obligations. Subsequent offenses will result in higher fines, longer suspensions, jail time, and longer community service times.

Don’t get caught without insurance in New Jersey. Simply enter your zip code into the field below so that we can put you in touch with reputable car insurance companies right away!

Copyright © 2011 | All Rights Reserved. | About Us| Privacy Policy | Terms and Conditions| Contact Us| Site Map