Here’s How Much Car Insurance Drivers Need in New Jersey:
Minimum Coverage Limit
Property Damage Liability
Personal Injury Protection
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. Lenders may also require gap insurance, which covers the difference between what you owe on your loan or lease and what the vehicle was worth if it gets stolen or totaled.
Car insurance in New Jersey is $107 per month for minimum coverage and $245 per month for full coverage, on average. The cheapest insurance companies in New Jersey are Geico, NJM Insurance and Amica, and getting quotes from several companies can help you find the best deal.
The average cost of car insurance in New Jersey is 77% higher than the national average auto insurance premium, and New Jersey ranks 48 out of 50 for the most affordable car insurance rates in the U.S.. There are several factors that affect how much you’ll pay for car insurance in New Jersey, including your driving record, age, location, the amount of coverage that you purchase, and the insurance company you buy it from.
Finally, it’s worth noting that car insurance premiums in New Jersey are average, compared to the cost of coverage in neighboring states like New York and Delaware. You can find more details in the table below.
Cost of Car Insurance in New Jersey vs. Neighboring States
New Jersey car insurance laws require bodily injury liability coverage of $15,000 per person and $30,000 per accident, as well as $5,000 of property damage liabilitycoverage. State law also requires $15,000 of personal injury protection coverage.
The first two categories - bodily injury liability and property damage liability - cover injuries or damages that you accidentally cause with your car. Your car insurance pays up to a specified limit for each category. If you want additional coverage, you can choose higher limits than the ones required by New Jersey law. The last category, personal injury protection (PIP), handles your medical bills even if you cause a car accident. PIP pays for medical bills and any lost wages or assistance with home tasks that you can’t manage due to an accident-related injury. … read full answer
As insurance is required by New Jersey law, you can face multiple penalties if you’re caught driving without it, including fines, suspension of license and registration, and high-risk insurance requirements.
NJ’s “Choice” No-Fault Laws:
New Jersey uses the no-fault system by default, but is one of three "choice” no-fault states. This means the state allows residents to choose whether they want to take part in the traditional no-fault system or opt for a tort system, like you’d find in most other states. The traditional no-fault system limits accident-related lawsuits, which means that each driver is initially responsible for their own medical bills – regardless of who caused the accident.
In New Jersey, however, residents can choose to sue or be sued after a car accident by opting out of the no-fault system. This means that drivers can file a lawsuit after an accident in order to recover damages solely from the person who caused the crash. But those who select this option typically pay higher insurance premiums, and they open themselves up to be sued if they cause a crash.
Another important New Jersey car insurance law to note is the grace period for new residents: You have 60 days to register your car when you move to New Jersey. You’ll need to bring proof of New Jersey car insurance when you go to register, with at least the following coverage types and amounts.
Minimum Coverage Required by New Jersey Car Insurance Laws
Yes, personal injury protection (PIP) is required in New Jersey. Drivers in New Jersey are required to have at least at least $15,000 of PIP coverage for medical expenses, plus additional categories of coverage for especially serious accidents.
Personal injury protection helps ensure that everyone on the road in New Jersey has some financial assistance for medical payments in the event of a collision. Drivers in all no-fault states are required to have it because they are restricted in terms of when they can sue another driver for compensation after an accident. That means PIP coverage is their first line of defense if they face hospital bills or a long recovery from an injury.… read full answer
WalletHub Answers is a free service that helps consumers access financial information. Information on WalletHub Answers is provided “as is” and should not be considered financial, legal or investment advice. WalletHub is not a financial advisor, law firm, “lawyer referral service,” or a substitute for a financial advisor, attorney, or law firm. You may want to hire a professional before making any decision. WalletHub does not endorse any particular contributors and cannot guarantee the quality or reliability of any information posted. The helpfulness of a financial advisor's answer is not indicative of future advisor performance.
WalletHub members have a wealth of knowledge to share, and we encourage everyone to do so while respecting our content guidelines. This question was posted by WalletHub. Please keep in mind that editorial and user-generated content on this page is not reviewed or otherwise endorsed by any financial institution. In addition, it is not a financial institution’s responsibility to ensure all posts and questions are answered.
Ad Disclosure: Certain offers that appear on this site originate from paying advertisers, and this will be noted on an offer’s details page using the designation "Sponsored", where applicable. Advertising may impact how and where products appear on this site (including, for example, the order in which they appear). At WalletHub we try to present a wide array of offers, but our offers do not represent all financial services companies or products.