If you own a car in NJ, you cannot drive it unless you purchase automobile liability insurance that complies with the state’s minimum coverage statutes.
Mandated auto insurance coverage in New Jersey means that, at a minimum, your vehicle is covered by a basic policy. A basic policy provides property damage limits of $5,000 per accident, and personal injury protection (PIP) of $15,000 per person.
Bodily injury coverage is not part of the basic package, but may be added as an option by some companies.
With a basic policy, drivers automatically have a limited right to sue. It provides minimal coverage and drivers need to evaluate their circumstances to ensure this coverage provides the appropriate amount of protection necessary.
Full Coverage and Standard Car Insurance
Full coverage car insurance includes a minimum of $25,000/$50,000 liability limits (most consumers purchase $100,000/$300,000), $25,000 in property damage liability and the ability to buy PIP coverage limits from $15,000 to $250,000. Other features available would include rental and towing insurance, collision insurance, comprehensive insurance, and more.
Property damage liability should also be increased so that if you total another person’s luxury car your limits will cover the cost. Most carriers recommend that full coverage include $100,000 in property liability.