New Jersey Car Insurance

The Garden State automobile insurance rates for state mandated minimum coverage is comparatively expensive as it is higher than the country average. However, it is relatively cheaper to buy a full coverage policy, which is below the US average. It may be good news if you want to buy a full coverage policy anyway but high liability only car insurance costs affects mainly low income drivers, who have tight budgets. Nevertheless, the state impresses with only 3.1% (only 1/4 of the US average) uninsured drivers ratio, despite higher minimum coverage costs.

New Jersey Requirements

Images from New Jersey

Here are the minimum liability car insurance requirements;

  • $15,000 for bodily injury or death per person.
  • $30,000 total for bodily injury or death per accident.
  • $5,000 for property damage.

NJ also requires Personal Injury Protection (PIP), Uninsured/Underinsured Motorist Bodily Injury (UM/UIM BI), and Uninsured/Underinsured Motorist Property Damage (U/UIM PD) for a standard policy with the following minimum limits:

  • PIP: $15,000 minimum
  • U/UIM BI: $15,000 per person, $30,000 per accident
  • U/UIM PD: $5,000 with a $500 deductible

PIP covers your medical costs, lost wages and death benefits, even if you’re at fault. U/UIM BI pays for medical expenses for you and your passengers if a driver with little or no insurance causes the injury. UM/UIM PD covers damage caused to your vehicle by an uninsured driver.

New Jersey allows up to $250,000 Personal Injury Protection coverage, which is the second highest after Michigan.

The Garden State is one of the top 10 safest states in the country for teenage drivers. Official website is the best place to check for the latest changes in the laws and enforcement.

You can get hefty fines, driver license and vehicle registration suspensions for not having the mandatory car insurance here. Also, jail sentences may be on the cards if you cause accidents without a liability policy or for repeat offences.

Automobile Insurance Costs in NJ

The Garden State is the most densely populated in the US with nearly 9 million residents. This naturally results in road congestion and vehicular crimes that in turn increase average vehicle insurance costs. Some zip codes in New Jersey would have higher premiums, especially densely populated and crime-ridden areas. This is generally the case everywhere as well. Larger cities and cosmopolitan residents usually get charged more. In some cases they may have to pay twice more than the suburban drivers. Being a good driver with no traffic violation conviction or claim will certainly help you find affordable quotes.

The average cost for a state required minimum coverage policy is $782 in NJ and it is about 26% higher than the US average. But the average full coverage car insurance is relatively cheaper at $1,754, which is $260 lower than the country average.

Drivers need to pay twice for full coverage but it is still comparatively cheap because the premium gap between full coverage and liability only is 3 or 4 times in other states. When the costs are this close, you should make an effort to upgrade your policy to full coverage if you don’t already have it. Full coverage vehicle insurance comes with liability, other state required covers, as well as collision and comprehensive covers to protect your own automobile.

Affordable Auto Insurance Companies in New Jersey

There is not much an individual policyholder can do about the external factors like higher rates in your zip code. However, premium burdens can be reduced by finding the most competitive underwriters. That is why you should start with below the most competitive vehicle insurers in NJ to get multiple quotes and compare rates. Shopping around often rewards you with lower prices.

  1. AAA
  2. NJ Skylands
  3. Farmers

The prices across the cities are widely spread on both sides of the state average. Generally, the larger and more densely populated a city, such as Newark, the higher motorists need to spend on premiums. The difference in the costs of insuring automobiles between the cheapest city (Hillsborough) and the most expensive city (Newark) can be as much as $1,200 on average. So, where you live influences rates much more than most people realize and this is heightened in places like NJ.