New Jersey auto insurance
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The importance of getting the right New Jersey auto insurance
Give careful consideration to your choice of New Jersey auto insurance coverage. New Jersey ranks as one of the most densely populated states in the nation, and it’s also home to a 78-mile stretch of Interstate 95. Noted by WorldAtlas.com as “The Most Dangerous Road in America,” I-95 runs almost the entire north-to-south length of The Garden State. Heading south, Interstate 95 runs through seven New Jersey counties after it crosses the Hudson River at the George Washington Bridge.
Bergen, Essex and Middlesex were the three top-ranking counties in which vehicle accidents occurred. These three New Jersey counties accounted for almost one-third of the total 190,783 vehicle crashes reported to the NJ Department of Transportation in 2020. New Jersey’s weather also adds to the accident risk; in addition to freezing-temperature winters, drivers can expect some form of precipitation about 120 days out of the year.
New Jersey is a no-fault state and drivers must carry a minimum required amount of Liability and Injury Coverage. Two of the requirements are Bodily Injury liability and Personal Injury Protection.
Drivers in New Jersey are also required to carry Uninsured or Underinsured Motorist coverage at the same limits as your Liability limits. If you’re hit by an uninsured driver or someone whose liability amount is less than the damage cost, these coverages will cover you. These plans also cover the damage resulting from a hit-and-run.
Minimum required amounts for New Jersey auto insurance coverage
The Liability insurance and Personal Injury Protection coverage required in New Jersey may appear similar, but there’s an important difference. If and when a vehicle accident occurs, your liability insurance covers the medical costs related to the harm caused to others. Liability insurance does not cover harm caused to you or your passengers. Your Personal Injury Protection insurance covers the recovery costs of injuries that you or your passengers suffer in an accident.
The coverage required in New Jersey is also defined by its dollar amounts. New Jersey required Liability Coverage is often referred to as following a 25/50/25 rule.
The required injury liability amounts are:
• At least $25,000 of Liability Coverage for each person injured.
• At least $50,000 total Liability Coverage for each accident.
• At least $25,000 of Liability Coverage for property damage.
New Jersey drivers must also have a minimum of $15,000 of their own medical costs covered by their auto insurance’s Personal Injury Protection plan. This plan also covers the medical costs related to your passengers’ injuries.
Consider more than just the minimum coverage
It’s important to remember that New Jersey’s insurance requirements reflect minimum amounts of coverage. If the medical costs associated with accident injuries exceed the amount of coverage your insurance provides, you could end up covering the difference out of pocket.
The average yearly cost of New Jersey auto insurance is more than $1,500. Considering that the state’s auto insurance rates rank among the highest in the nation, cost may be a factor when reviewing New Jersey auto insurance quotes. It could, however, prove to be a wise decision to include some or all of the optional coverages that are available.
The right coverage may not be as costly as you think. The auto insurance comparison tools that VIU by HUB provides can make it easier for you to choose the carrier that best meets both your needs and your budget.
Additional New Jersey auto insurance coverage you may need
You’re not limited to the minimum required coverage amounts.
Rather than purchasing no more than the minimum required 25/50/25 liability coverage, it’s worth considering purchasing a policy with higher Liability Coverage rates.
Collision and Comprehensive Coverage
Incurring liability for bodily harm caused to others is not the only concern that insurance policies can remedy. Collision Insurance, which is optional in New Jersey, will cover the damage done to your vehicle whether you are at fault or not. Although not required by law in the Garden State, it can come in handy if you hit a tree, signpost or any other stationary object.
Comprehensive Coverage is another insurance add-on that can save you from paying out-of-pocket for an unexpected vehicle replacement or repairs. As its name implies, Comprehensive Coverage functions as a non-collision, or “everything else,” insurance.
Comprehensive auto insurance can cover non-collision losses caused by:
• Theft.
• Vandalism.
• Falling objects.
• Floods, fires and earthquakes.
• Animals.
It’s well worth considering Comprehensive Coverage when you’re comparing New Jersey auto insurance quotes. If you’re leasing your vehicle or paying off an auto loan, however, the leasing company or bank will require you to have both Collision and Comprehensive Coverage.
This information is intended for general informational purposes only and is not intended to constitute legal advice.