New Jersey Auto Insurance

Auto insurance in New Jersey

Car insurance policies are mandatory and regulated through legal means, helping drivers stay protected in case of accidents. No matter if the vehicle is used for personal or professional purposes, having insurance is a must. Without adequate insurance, drivers are liable for fines of up to $1,000 and they might have their driver's license or vehicle registration suspended, for up to six months. If you are looking to discover more information on the topic of auto insurance in New Jersey, we invite you to keep on reading.

What type of car insurance do you legally need in New Jersey?

According to the Mandatory Liability Insurance Act, all New Jersey residents who want to operate a moving vehicle must have a liability insurance policy acquired. If the insurance policy is not valid or is missing, the respective vehicle registration will be suspended for several months or more. The local authorities also have access to an online verification system, where they can instantly verify whether a vehicle is insured or not.

For a resident to operate a vehicle in the state of New Jersey, the respective car insurance must meet several requirements. These include the following: bodily injury liability ($30,000 per accident and $15,000 per person), property damage liability ($5,000 per accident), uninsured/underinsured motorist bodily injury ($30,000 per accident and $15,000 per person), personal injury protection ($15,000), and uninsured/underinsured motorist property damage coverage ($5,000 per accident). The full coverage insurance is more beneficial than the minimum liability coverage, with drivers having the opportunity to add options such as comprehensive and collision insurance. It is recommended to choose an insurance policy with a high coverage limit, in contrast to the minimum one required by the law in New Jersey. Thus, you will benefit from the best possible protection should an accident occur.

The sums mentioned above refer to the amount insurance providers are able to pay, should you be involved in an at-fault accident. According to current laws in NJ, all drivers are required to carry a copy of their insurance policy while driving. Of course, driving without insurance is illegal in the state of New Jersey, with consequences such as legal fines and the suspension of one's driving documents (driver's license, vehicle registration). If the infraction is repeated, jail time might be enforced through legal means.

Average cost of auto insurance in New Jersey

The state minimum auto insurance policy in New Jersey has a value of $908. However, a full coverage insurance policy has an average value of $1,459 per year. Collision and comprehensive coverages are not always included in the general policy, which means you will have to calculate your budget accordingly. Among the factors that influence the overall insurance rates, there are: marital status, age, driving record, gender, type of vehicle, location, presence of prior insurance, number of miles driven, etc. The best thing you can do is opt for an insurance policy that offers a high coverage limit, staying away from those that are suspiciously affordable.

Vehicle owners are aware of the fact that the average cost of car insurance varies from one state to the other. They expect such differences for both the minimum coverage and the full version, including when it comes to additional coverages, suggest comprehensive and collision insurance. Among the factors influencing these values, there are: road conditions, accidents caused by weather elements or conditions, at-fault accidents, number of uninsured drivers in their respective location, number of drivers versus the general population, etc.

New Jersey has a lower rate for the average car insurance than the national median, which is around $1,770. Among the states with the most expensive auto insurance policies, there are: Pennsylvania, New York, Nevada, Michigan, Louisiana, Florida, Colorado, and California. As for the states with the most affordable policies of this kind, these include: Wisconsin, Washington, Tennessee, Oregon, North Dakota, New Mexico, Nebraska, and Maine. New York has some of the most expensive auto insurance policies, with $1,339 for the minimum coverage and $2,996 for the full coverage. Maine is the most affordable, with $227 for the minimum coverage and $876 for the full coverage.

Within the state of NJ, you might also notice differences between various cities. Toms River has among the most affordable auto insurance policies, while Newark is without doubt the most expensive. The average annual premiums are as follows: Toms River - $1,963; Jersey city - $2,693; Elizabeth - $2,937; Paterson - $2,978; Newark - $3,056.

That driver's age is one of the chief factors influencing the value of auto insurance. Typically, this type of insurance is more expensive for young drivers, as they are perceived by insurance providers as irresponsible and more likely to cause accidents. For example, a teenage driver will pay an annual premium of over $7,700, while a middle-aged driver will be accustomed with a premium that is around $2,000. Gender differences are also present, with men benefiting from more affordable rates. The same goes for married couples, who benefit from the most affordable coverages, in contrast to those who are widowed, divorced, or single.

In calculating the value of a potential coverage policy, auto insurance companies will analyze various factors, including the driver's credit history. A driver with an exceptional credit will save important sums on his/her annual premium, while someone with a poor credit history will struggle to cover the high rates. Prior driving offenses, including DUI/DWI, at-fault accidents, reckless driving, or speeding, will increase the overall insurance rates. Vehicle owners also know that the insurance policy rates vary in accordance with the chosen type of coverage. They can add both comprehensive and collision insurance to the state minimum policy.

Did not find your city or county on the list? Please use our auto insurance companies search box at the top to locate all the best auto insurance quotes in New Jersey. Find car insurance in New Jersey by city, zip code or county name.

Finding the right auto insurance in New Jersey

If you need help finding the right auto insurance policy, you can count on us. Backed by years of experience and knowledge accumulated in the field of auto insurance, we are able to match drivers with the best policies for their needs. In suggesting a particular policy, we will always consider your available budget. Just give us a call and we will gladly offer all the support you might need. Do not hesitate to take advantage of this free service!