New Jersey Car Insurance FAQ - Quick Answers

On average, New Jersey drivers pay more than most other drivers around the nation, coming in at $1,595 annually for car insurance. This rate is higher than the national average of $1,311 per year. To obtain the lowest costs on auto premiums, get multiple quotes through a trusted adviser. 

All New Jersey auto policies will be different. However, the commonly used limits are listed below.

  • Bodily injury liability: Pays for medical expenses of others.
  • Property damage liability: Pays for property damage of others.
  • Personal injury protection: Pays for your medical expenses.
  • Uninsured/underinsured motorist: Pays for an accident involving an uninsured/underinsured motorist.
  • Comprehensive coverage: Pays for a collision with an unavoidable object such as an animal.
  • Collision coverage: Pays for a collision with another vehicle, animal, or property.

In New Jersey, you are required to carry the following minimum limits in order to drive on the roadways.

  • $15,000 in bodily injury liability per person
  • $30,000 in bodily injury liability per accident
  • $5,000 in property damage liability
  • Uninsured motorist liability 
  • Personal injury protection

In New Jersey, the driver who causes the accident is the one responsible for the expense. If you are at fault, however, for your own car accident and sustain injuries, the personal injury protection on your own policy will apply and help pay for your medical bills.

If you're looking for the best car insurance carrier to do business with, then you'll have some options. In New Jersey, Travelers, Stillwater, and Progressive insurance companies come highly rated. These carriers are used often by insureds because of their superior claims service and coverage selection.

The short answer is no. You will need to provide proof of insurance when registering your New Jersey vehicle, and at the state minimum limits required. 

In New Jersey, you are required to carry insurance on your vehicle from the state in which it's registered. While most states may have a temporary period during a transition when they allow this to slide (usually 30 days), it's best to go ahead and get coverage in the state where you live and where the vehicle is registered. 

Do You Know What Your New Jersey Car Insurance Covers?

Find the Best Car Insurance in Your City

How does your city measure up to the national average?

National average time spent commuting 26.9 Min

National average car thefts per 1,000 2.3 Year

National average car insurance cost $1,311 Year

CityCommute time (min)Auto thefts / 1,000Annual insurance cost
Egg Harbor242.2$1,230
Fair Lawn33.30.51$1,305
Jersey City37.22.51$1,635
New Brunswick27.11.16$1,517
Toms River310.44$1,321

Bodily Injury Requirements in New Jersey

There are several coverages that you can obtain under your auto policy. Bodily injury liability coverage is necessary and helps pay for the medical expenses of another driver when you're at fault for a collision.

In New Jersey, bodily injury liability is required and needs to be at least $15,000 per person and $30,000 per accident. Many insureds opt for higher limits of protection due to the rising costs of auto claims. 

Property Damage Requirements in New Jersey

You are required to carry property damage liability in New Jersey when using the roadways. This coverage helps pay for damage to another party due to your negligence or causing a car accident. 

The minimum amount you're responsible for having is $5,000 in property damage liability in New Jersey. If you're found without proper protection, you could face serious fines or worse.

Personal Injury Protection Coverage Requirements in New Jersey

Each state has its own requirements, and some of those mandates include personal injury protection, or PIP, under your auto policy. PIP helps pay for your medical expenses due to a car accident you're responsible for causing.

In New Jersey, you are required to carry PIP on your car insurance policy to comply with local law. Without this coverage, you could be responsible for medical bills out of pocket. 

Uninsured Motorist Coverage in New Jersey

Uninsured motorist coverage will protect you from paying for hospital bills and property damage when you're involved in an auto accident with an at-fault, uninsured driver. Fortunately, in New Jersey you are required to carry this limit under your auto insurance.

Even though coverage is mandatory in New Jersey,  not all drivers abide by this law. Currently, 14.9% of New Jersey drivers are uninsured. 


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Optional Car Coverage in New Jersey

Every auto policy will have optional coverages that you can add for an additional premium. Collision insurance and comprehensive insurance are commonly chosen limits and help pay for damage to your vehicles. 

There are many other limits of protection you can obtain, and that help cover you and your property. Without these additional coverages you will only have insurance for the other party when you're at fault, requiring you to pay for everything else.

Car Insurance Discounts to Consider in New Jersey

In New Jersey, there are several discounts on car insurance that you could qualify for. One of the most used is the multiple policy discount when you have more than one policy with a single carrier. 

An association discount also may be applied when you belong to a teachers union, attorney group, or government agency. Another way to cut costs is by staying with the same company for a period of time which will give you a loyalty discount.

How to File a Car Insurance Claim in New Jersey

When you're involved in a car accident, reporting everything that has occurred can be a nightmare. To help, follow these four easy steps for filing a car insurance claim in New Jersey.

First, get to a safe place and tend to any injuries immediately. Second, call your independent insurance agent and report the claim as soon as you can. Third, obtain the claims number as well as a rental vehicle if your policy allows and it's necessary. Last, contact your adjuster about the damage and injuries so you can start collecting payment for the loss.