Car insurance costs in New Jersey can vary based on your coverage choices, your vehicle, your driving profile and location. The price of your auto insurance policy will mainly come down to which coverage you choose and their limits.
Is car insurance mandatory in New Jersey?
Yes, in New Jersey, car insurance is mandatory. For a standard policy, you must carry the following coverages at these limits:
| Required Coverage (Standard Policy) | Minimum Limit |
|---|---|
| Bodily Injury Liability | $35,000 per person / $70,000 per accident |
| Property Damage Liability | $25,000 per accident |
| Personal Injury Protection | $15,000 per accident |
| Uninsured/Underinsured Motorists | $35,000 per person / $70,000 per accident |
Bodily injury liability coverage — protects you if you’re responsible for injuring someone in a car accident. This coverage can help pay for the injured party’s medical expenses, lost wages, and pain and suffering. It may also help pay your expenses in a related lawsuit. You need at least $35,000 of coverage per person and $70,000 per accident in NJ.
Property damage liability coverage — protects you if you are responsible for damaging someone else’s property in a car accident. This coverage helps reimburse another person for their damaged property, such as a car or a fence. It also helps pay your expenses in the event of a related lawsuit. There’s a minimum limit of $25,000 per accident for NJ insurance policies.
Personal Injury Protection (PIP) — New Jersey is a no-fault state, which means your PIP coverage pays for your medical expenses resulting from an accident, regardless of who was at fault. In NJ, you need at least $15,000 of Personal Injury Protection.
This is different from liability coverage, which covers bodily injury and property damage you cause to another driver or their passengers when you’re at fault.
Uninsured and underinsured motorist coverage (UM/UIM) — helps pay medical costs and other related expenses when you or one of your passengers is injured in an accident caused by a driver who doesn’t have enough car insurance (is underinsured) or who doesn’t have any coverage (is uninsured). UM/UIM also pays for injuries caused by a hit-and-run accident.
This coverage may also pay for damages to your car; however, the driver of the hit-and-run vehicle must be identified before UM/UIM can cover repairs for your car. Otherwise, your optional collision coverage will help pay for damages from an unidentified driver, if you have it.
"Full coverage" car insurance in NJ
Collision coverage
Covers the cost to repair or replace your car after a collision with another vehicle or stationary object. Collision only covers damage to your car or someone else’s car that you are operating with permission of the owner.
Comprehensive coverage
Protects your car from damage NOT related to a collision with another vehicle. This includes things like natural disasters and storms, fires, theft, vandalism, damages caused by hitting an animal, and more.
Having “full coverage” in NJ means having these coverages, in addition to your required liability coverage.
Cost details of auto insurance in New Jersey
Coverage limits
The more coverages you have on your auto policy, the higher your premiums will be. Saving with lesser coverage may mean paying more in the long run if you have a claim that exceeds your limits. Make sure you understand what your insurance covers so you can protect yourself, your family, and your assets.
Type of car
The kind of car you drive is a big factor when it comes to your insurance rates. Factors like your car’s make, model, age and its repair cost will affect how much your insurance premium costs.
Driving record
How you drive also makes a huge difference in how much your insurance will cost. Accidents and moving violations on your record indicate to an insurance company that you are riskier to insure. The best way to keep your insurance costs down is to drive safely and maintain a clean driving record.
Car insurance discounts in New Jersey
If you’re looking to save money on car insurance, Plymouth Rock offers New Jersey drivers a variety of great discounts and benefits, including our telematics program, YUBI®.
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