A car is considered a classic in New Jersey if it's at least 25 years old. When a vehicle in New Jersey meets these requirements, the owner can register it as a historic vehicle, which will limit the car’s use. Specifically, classic cars in New Jersey can only be used for exhibition and educational purposes.
Classic Car Qualifications in New Jersey
At least 25 years old
Only used for exhibition and educational purposes
Keep in mind that even if your vehicle is registered as a classic car in New Jersey, it might not qualify for classic car insurance from certain companies. Each classic car insurer has its own eligibility requirements, so your car will need to meet those standards in order to qualify.
Classic car insurance costs less than regular car insurance because a classic spends less time on the road than a vehicle used for commuting or errands. The average classic car insurance policy costs between $400 and $1,000 per year.
Like with any auto insurance policy, each driver’s classic car insurance premium will vary based on individual risk factors such as location, driving history, the driver’s age, and the vehicle’s value. Classic car insurance usually applies to antique vehicles as well as to old, high-performance cars. Requirements and prices vary by company, though.… read full answer
Why Classic Car Insurance Costs Less Than Normal Car Insurance
Almost every classic car insurance provider forbids regular use of the vehicle, which reduces the risk for the insurer and keeps costs low. Classic cars are generally limited to parades, car shows, and pleasure driving up to a mileage limit stated in the policy. As a result, you may need to provide proof that you own a regular car for daily use when purchasing classic car insurance.
Another key difference is that most classic car insurers pay the vehicle’s “agreed value” if it is totaled. This amount is decided when the policy is purchased and reflects the fact that classic cars maintain their worth over time. On the other hand, standard car insurance policies usually pay a vehicle’s actual cash value in the event of a total loss, accounting for depreciation.
How to Lower the Cost of Classic Car Insurance
You can lower the cost of a classic car insurance policy by comparison-shopping for quotes and taking advantage of discounts. Many discounts will be the same as those for regular car insurance, such as discounts for having an anti-theft device or taking a defensive driving course. Some companies also offer discounts for membership in certain car clubs or for switching from a different insurer.
Car insurance in New Jersey costs $107 monthly ($1,287 per year) for minimum coverage, on average, and around $250 per month ($3,006 annually) for a full-coverage policy. The cheapest insurance companies in New Jersey are Geico, State Farm, and NJM Insurance, but insurers calculate premiums differently, so it’s a good idea to get quotes from more companies to find the best deal.… read full answer
Average Cost of Car Insurance in New Jersey by Category
Clean driving record: $107 per month
After an at-fault accident: $170 per month
Driver with poor credit: $180 per month
Teen driver: $356 per month
After a DUI: $208 per month
The average cost of car insurance in New Jersey is 79% 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
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.