New Jersey Auto Insurance Laws

 In 2019, the New Jersey Department of Transportation reported 278,413 accidents. So far in 2020, there have been 531 fatal accidents, a nearly 5% increase over the previous year.

 

Car insurance is required by law in New Jersey. To protect themselves and other drivers on the road, drivers must meet certain coverage requirements. Continue reading to learn about the car insurance laws in New Jersey.

Auto Insurance Laws in New Jersey

New Jersey insurance law is straightforward and simple to grasp. These laws are intended to keep drivers safe and to provide adequate coverage for all drivers. The following are the New Jersey car insurance laws that all drivers should be aware of:

Drivers must carry minimum coverage: Every driver in New Jersey is required to carry a minimum amount of liability and uninsured motorist coverage.

 

Drivers are required to have no-fault insurance: New Jersey is a no-fault state, which means that drivers must have no-fault car insurance.

 

Drivers must carry proof of insurance in their vehicle at all times and provide proof of coverage when requested by law enforcement. Electronic ID cards and physical documentation are both accepted forms of proof of insurance in New Jersey.

Every driver in New Jersey is entitled to auto insurance: Every driver in New Jersey is entitled to a car insurance policy. Under the Automobile Insurance Cost Reduction Act, drivers who are denied coverage or cannot afford standard coverage can purchase a Basic Policy. Furthermore, New Jersey drivers on federal Medicaid who receive hospitalisation benefits are eligible for The Special Automobile Insurance Policy (SAIP), which costs $365 per year.

Liability Insurance in New Jersey

 

For the standard insurance policy, the New Jersey minimum car insurance requirements are 15/30/5. Liability coverage and uninsured/underinsured motorist coverage are included in the minimum coverage insurance. In New Jersey, the following coverage is required: 

Per person, bodily injury liability coverage of $15,000 is provided.

 

Per accident, bodily injury liability coverage of $30,000 is provided.

 

Property damage liability coverage of $5,000 per accident

 

Most drivers in New Jersey opt for more coverage than is legally required. Car accidents can be costly, and there is no guarantee that liability-only coverage will cover the costs of an at-fault accident.

Is New Jersey a fault-free state?

 

Yes, New Jersey is a fault-free state. In a no-fault state, a driver's insurance company will automatically pay for their medical expenses and lost wages following an accident, regardless of who was at fault. In a fault state, the at-fault driver's insurance company is responsible for paying the medical bills of the other driver.

 

Drivers in New Jersey are required to carry Personal Injury Protection (PIP) insurance because the state is no-fault. In New Jersey, the minimum amount of PIP insurance required is $15,000 per person or per accident, but drivers can choose to increase their coverage limits to $250,000 or higher.

What is the most affordable car insurance in New Jersey?

 

NJM, Amica, Selective Insurance, Plymouth Rock, and Geico are the cheapest car insurance companies in New Jersey. Selective Insurance offers the most affordable full coverage policy, which costs an average of $1,019 per year. NJM has the most affordable minimum coverage policy, which costs an average of $363. Each company will provide you with a personalised quote so you can determine which one will provide you with the best deal.