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.
What is basic auto insurance in NJ?
Mandated auto insurance coverage in New Jersey means that your vehicle is covered by a basic policy at a minimum. 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. Basic policies provide minimal coverage, and drivers need to evaluate their individual circumstances to determine whether this coverage provides the appropriate amount of protection necessary, or if they would also like to obtain additional coverage.
What is liability-only (i.e. state-mandated) car insurance coverage in NJ?
Liability-only car insurance coverage includes a minimum of $35,000/$70,000 in bodily injury coverage per person/per accident, $25,000 in property damage liability, and the ability to buy PIP coverage from $15,000 to $250,000 in policy limits. Some consumers purchase additional coverage beyond these minimum limits.
For example, policies that provide $100,000/$300,000 in bodily injury coverage tend to be popular with consumers. You can also increase your property damage coverage beyond the $25,000 minimum, so that if you total another person’s luxury car, your policy limits will cover the cost.
Other available coverages include rental and towing insurance, collision insurance, comprehensive insurance, and more.
What is full coverage car insurance in NJ?
A policy is considered to provide full coverage if it includes state-mandated liability coverage, as well as collision and comprehensive insurance coverage. Other features available under a full coverage policy include rental and towing coverage, and other optional coverages.
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