We’ve done the research and analysis to provide you with the information you need to know as driver in New Jersey. If you’re looking for state laws, coverage options, discounts available, or more, you’ve come to the right place. You can even call an agent at 855-462-2213 for help.
State Car Insurance Requirements
Drive in New Jersey and you’ll need the following to stay in the law’s good graces:
- Liability insurance
- Personal injury protection (PIP)
- Uninsured motorist coverage
There are two types of policies you can get: a basic policy or standard policy.
Is cost more important to you than coverage? The basic insurance policy is cheaper than the standard, but it provides less coverage. If you find yourself in a bind that the basic plan doesn’t cover, the additional costs will come out of your own pocket. Here are the minimums you’ll need to buy with this kind of plan:
- $5,000 of property damage liability (PDL) per accident
- $15,000 of personal injury protection (PIP) per person, per accident
- Up to $250,000 for very severe injuries, like permanent brain injuries
Bodily injury liability (BIL) isn’t part of this. You’ll have to get that on your own and can buy up to $10,000 worth.
If you are willing to pay a higher premium, the standard policy provides added coverage that the basic plan does not. The standard plan includes:
- $15,000 of bodily injury liability (BIL) insurance per person, per accident
- $30,000 of BIL for multiple injured people per accident
- $5,00 of PDL per accident
- $15,000 of PIP per person in an accident
- Up to $250,000 of PIP for severe or permanent injuries
Right to Sue
Standard policyholders must decide about the rights they want to choose in case they are involved in an accident. This is called your “right to sue” and it comes with two choices. Both have different premiums and don’t allow suing for medical costs or loss of income (covered by PIP.) You can only sue for pain and suffering. Here are the types:
- Unlimited Right to Sue comes with higher premiums and means you can sue a person who causes an accident that injures you.
- Limited Right to Sue means you can only sue a person who causes a car accident if you are suffering from any of the following:
- Loss of body part
- Significant scarring
- Significant disfigurement
- Displaced fractures
- Permanent injury
- Loss of fetus
Limited right to sue is the cheaper option and only option for drivers who buy a basic policy.
Add-On Coverage You Can Buy
Going with the bare minimum will cover you by legal standards, but maybe not from having to dip into your own wallet. Consider the following options for additional coverage and added peace of mind:
Collision Coverage- Bumps, dents, fender benders, and more damage from getting into an accident is covered by this insurance.
Comprehensive Coverage– If a vandal, weather, an animal, or something else damages your car, you’ll be covered.
Towing and labor coverage- If your car needs a tow from an accident, your insurance company will pay for it if you have this coverage.
Rental car coverage- Get a rental car to drive around in while yours is being fixed after an accident with this insurance add-on.
What New Jersey Drivers Pay For Car Insurance
When you break down how much your annual premium covers, it seems much less expensive. You shouldn’t be paying more than you have too though! Based on our research, here are the cheapest insurance companies in New Jersey:
|Average Annual Rates|
|Norfolk & Dedham||$1,230.41|
Your insurance rate is unique to you. See our full list of car insurance companies in New Jersey and how much they charge on average.
If you have Federal Medicaid, you can get a Special Automobile Insurance Policy (SAIP). It will cover you if you’re in an accident and have to be hospitalized for only $360 annually (if paid in full) or $365 if paid in two installments.
Proof of Insurance in New Jersey
If you can’t prove it, you lose it in New Jersey. You’ll need to carry your insurance card with you (they don’t accept electronic copies!) that says or you could get into some serious trouble:
- Insurance company name
- Insured driver’s name and address
- Insurance policy number
- Effective data and expiration date
- Vehicle description (make, model, VIN, etc.)
Violations and Penalties
Don’t get yourself into trouble. Keep your insurance card on you because New Jersey doesn’t accept electronic versions. If you are caught driving without it, you may have to:
- Pay fines
- Lose your license
- Do community service
- Pay insurance surcharges
Car Insurance Fraud in New Jersey
Fraud is no joke. Thousands of people do it every year and ultimately cause rates to go up for everyone. Not sure what car insurance fraud is? Here’s a sampling:
- Faking injury after car accident
- Medical professionals overcharging for treatment of injury
- Staging car accidents
- Making or possessing falsified car insurance ID cards
Violations and Penalties
Try to pull the wool over your insurance company’s eyes and you could get:
- Jail time
- Up to $15,000 fine
- Suspension of your driver’s license
Car Insurance Fraud Reporting Rewards Program
The New Jersey Office of the Insurance Fraud Prosecutor doesn’t mess around with car insurance fraud. They even reward people who report it (if it’s a tip that leads to the arrest and criminal conviction of someone in a new case). To get your reward or file a claim, contact the OIFP office:
- Online- OIFP Fraud Reporting Form
- By phone- OIFP hotline (877) 553-7283
- By mail-
NJ Department of Law and Public Safety
Division of Criminal Justice
Office of the Insurance Fraud Prosecutor
P.O. Box 094
Trenton, NJ 08625-0094
Most stolen cars in New Jersey*
Driving a car that’s stolen won’t only give you gray hairs when you park it for the night, but it could make your insurance premium go up too. Here are the cars thieves love stealing in New Jersey:
- Honda Accord
- Honda Civic
- Dodge Caravan
- Jeep Cherokee/Grand Cherokee
- Ford Pickup (Full size)
- Toyota Camry
- Nissan Altima
- Ford Econoline E250
- Nissan Maxima
- Toyota Corolla
*According to www.nicb.org
Get Expert Advice
Licensed insurance are available to answer any questions you may have. If you are ready to begin shopping for a new policy, they can also provide you multiple quotes from top companies to help you find the best rate. Call 855-462-2213 to speak to an agent today.
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