Yes, you do need rental car insurance in New Jersey if you do not already have a standard car insurance policy. Unlike in most states, rental car companies in New Jersey do not automatically provide the state-minimum liability insurance coverage as a part of their standard contract. As a result, you must purchase the coverage separately when you rent a car unless you already have a standard car insurance policy that meets the requirements.
New Jersey Rental Car Liability Insurance Requirements
- $5,000 in property damage liability insurance per accident
In addition, New Jersey generally requires drivers to carry personal injury protection (PIP), but you can legally drive a rental car without this coverage.
If you have an existing personal car insurance policy that includes more liability insurance than the state requires or other types of insurance, like collision or comprehensive, the extra protection will extend to your rental car. But even if you’re already covered by your own policy, you can still purchase additional liability coverage from the rental company. In that case, the supplemental coverage would just extend your existing liability limits.
You can also purchase additional coverage from the rental company to fill gaps left by your personal policy. For example, you can purchase a collision damage waiver, which provides coverage comparable to collision and comprehensive insurance. Just bear in mind that in some cases, this coverage may apply automatically if you pay for your rental with your credit card.
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