If you’re looking for a car insurance quote in New Jersey, expect to pay a pretty penny.
New Jersey is one of the most expensive states for car insurance premiums in the entire country. Data from the National Association of Insurance Commissioners shows that the average car insurance premium rate in New Jersey was $1,254. That is much higher than the national average of $841.
New Jersey State requirements
Like many other states, New Jersey requires that all motorists maintain minimum requirements for insurance. However, New Jersey is unique in that it provides options for basic and standard insurance policies.
Basic policy requirements
This is a more affordable option for motorists who are looking to save money and fulfill the minimum requirements for car insurance in New Jersey. This option offers limited coverage, which includes:
- Property damage liability (PDL) of $5,000 for each accident. This only covers damage to the other party’s property that you are responsible for causing.
- Very severe/ permanent injuries cover of up to $250,000, which covers costs related to severe or permanent injuries suffered by other people involved in an accident you are responsible for.
- Personal injury protection (PIP) of at least $15,000 for each person in each accident. This covers costs related to injuries suffered by you or other people who are covered by your policy.
It is important to note that the basic policy doesn’t include bodily injury liability coverage. This means that without additional coverage, you will not be covered for lawsuits or claims that other people injured in an accident you are liable for file against you. Many insurance providers offer an option to purchase additional coverage for bodily injury liability of $10,000 and more.
Standard policies
These offer more coverage and therefore come with a higher premium. The minimum standard policy should include:
- Bodily injury liability coverage of at least $15,000 for each person per accident. This will cover the cost of injuries to anyone involved in an accident that you are responsible for
- Property damage liability of $5,000 for each accident
- Bodily injury liability of at least $30,000 for injuries to multiple people per accident
- Personal injury protection of $15,000 for each person injured in a car accident you are responsible for
- Personal Injury protection of $250,000 for permanent or severe injuries caused in an accident that you are responsible for.
According to the Insurance Research Council, the estimated percentage of uninsured motorists in New Jersey was 10.3 percent. This is below the national average of 12.6 percent. For this reason, New Jersey state laws also require you to include Uninsured/underinsured bodily injury coverage with a $15,000 or $30,000 limit as well as uninsured motorist property damage coverage with a $5,000 limit.
Penalties and fines
If you are not able to show proof of insurance or are found driving with inadequate insurance or no insurance altogether, you may face one of the following penalties:
- At least a $300 fine
- Jail time
- Suspension of your driver’s license
- An insurance surcharge
- Community service.
Car insurance fraud in New Jersey is taken seriously. Penalties and fines are awarded to people found to be:
- Faking injuries
- Staging accidents
- Overcharging for medical treatments of injuries
- Falsifying insurance documents.
Penalties for these actions may include:
- Fines of up to $15,000
- Jail time
- Suspension of your driver’s license
So where do you start? Start comparing different car insurance quotes in New Jersey to learn what kind of premiums are available based on the coverage you need. Just be sure to match up coverage details line by line for an accurate premium comparison.
