WalletHub, Financial Company
@WalletHub
No, uninsured motorist coverage is not required in New Jersey – it is optional. Drivers can choose to buy at least $15,000 in uninsured motorist bodily injury coverage per person (at least $30,000 per accident) as well as at least $5,000 in uninsured motorist property damage insurance per accident.
Additionally, drivers have the option to purchase at least $15,000 in underinsured motorist bodily injury coverage per person (at least $30,000 per accident), along with at least $5,000 in underinsured motorist property damage insurance per accident.
Uninsured/underinsured motorist coverage helps pay for a car accident if the at-fault driver doesn’t have enough insurance. Normally, the at-fault driver’s liability insurance pays for any property damage or injuries they caused. But if the other driver doesn’t have enough coverage, it can be time-consuming and difficult to sue them for funds to cover any bills. That’s where uninsured/underinsured motorist insurance can help save drivers time and money.
Even though New Jersey does not require uninsured/underinsured motorist coverage, it’s still a wise investment if you can afford it. In New Jersey, it’s estimated that 15% of drivers don’t have car insurance. This gives you a 1 in 7 chance that the other driver won’t have insurance if you get into an accident. Car accidents in New Jersey can be extremely expensive, too. For example, fatal accidents in New Jersey have a total cost of $798 million each year.
Key Facts About Uninsured Motorist Coverage in New Jersey:
- Minimum Uninsured Motorist Bodily Injury: at least $15,000 per person and at least $30,000 per accident
- Minimum Uninsured Motorist Property Damage: at least $5,000 per accident
- Minimum Underinsured Motorist Bodily Injury: at least $15,000 per person and at least $30,000 per accident
- Minimum Underinsured Motorist Property Damage: at least $5,000 per accident
- Uninsured Drivers on the Road: 15%
People also ask
Do I need uninsured motorist coverage if I have collision and comprehensive?
Yes, you need uninsured motorist coverage even if you have collision and comprehensive coverage. Collision insurance will pay to repair your vehicle if you’re hit by an uninsured driver, but it won’t pay for any of your medical expenses, and comprehensive insurance won’t cover your costs at all after a collision. Comprehensive insurance only pays for repairs if your car is damaged by something other than a collision, such as vandalism or a natural disaster. And you...
read full answerWhat is the cost of uninsured motorist coverage?
Uninsured motorist coverage costs around $50-$75 annually for bodily injury and property damage coverage. Uninsured motorist coverage (UM) protects the policyholder by paying for injuries or damage resulting from a car accident caused by a driver who doesn’t have enough insurance.
Like any type of car insurance, uninsured motorist premiums vary based on the policyholder’s risk factors. How much coverage you purchase will also affect the cost of UM. Similarly, uninsured motorist premiums are...
read full answerShould I reject uninsured motorist coverage?
No, you should not reject uninsured motorist coverage unless you have collision insurance and enough medical coverage to pay for your expenses after an accident caused by an uninsured driver. Drivers can reject uninsured motorist coverage in states where it is optional but still has to be offered by insurance companies. For instance, drivers in California, Florida, and Texas can legally reject uninsured motorist coverage. In 21 other states, including New York and Illinois, uninsured motorist...
read full answerDid we answer your question?