In New Jersey, drivers need $15,000 in personal injury protection insurance (up to $250,000 for certain injuries) and $5,000 in property damage liability insurance. Insurers in New Jersey offer basic and standard insurance plans, which are two different options that both fulfill the state’s coverage requirements. The difference is that standard plans are more expensive and include $15,000 per person in bodily injury liability coverage ($30,000 per accident). Standard plans also allow drivers to purchase higher PIP and property damage liability limits.
New Jersey does not require uninsured/underinsured motorist coverage, which applies when the at-fault driver does not have any liability insurance or does not have high enough liability limits to pay for the damage. Instead, personal injury protection can pay for medical expenses for you and your passengers in New Jersey.
Here’s How Much Car Insurance Drivers Need in New Jersey:
Car Insurance for a Leased or Financed Car in New Jersey
If you lease or finance your car, you may be required to carry coverage types that are not mandatory under New Jersey law.
Lenders usually require comprehensive and collision insurance. Collision insurance covers repairs to your car when you hit another car or object. If the damage to your vehicle was caused by something other than a collision—like a natural disaster, vandalism, falling objects, or animals—it is most likely covered by comprehensive insurance.
You might also have to get gap insurance, which covers the difference between what you owe on your loan and what the vehicle is worth at the time of a total loss.
Even if you’re not required to carry these optional coverage types, you may still need them. You can learn more about when to drop optional coverage and the penalties for driving without insurance in New Jersey to make sure you’re paying for the coverage you need.
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