Drivers in Passaic, New Jersey are required by law to have auto insurance. This coverage is particularly important because even the most cautious drivers can sometimes find themselves involved in accidents. From fender benders on Main Avenue to multi-vehicle collisions on Route 21, a solid car insurance policy can protect your finances by covering the associated costs. Finding the best auto coverage is easy when you work with an independent insurance agent. Contact an insurance agent in Passaic to start comparing customized car insurance quotes.
How Much Does Car Insurance Cost in Passaic, NJ?
Average car insurance rates in New Jersey are higher than the national average, but in Passaic, the rates tend to be more in line with the national average. To get a general idea of what you might be expected to pay for your coverage, let’s look at a few statistics:
- National average annual car insurance cost: $1,311
- New Jersey average annual car insurance cost: $1,595
- Passaic average annual car insurance cost: $1,375
Of course, rates tend to vary significantly from one policyholder to the next. This is because they are assigned according to the risk each policyholder presents. An 18-year-old man with a muscle car is likely to pay more for coverage than a mother of two in a minivan. The only way to know how much a policy will cost you is to request quotes from a few insurers. Insurance companies base their rates on several factors, including:
- The make, model, year, and safety features of your car
- Your driving record and claims history
- Whether you own or rent your home
- The coverage options you wish to include in your policy
- The amount of liability coverage you want to purchase
- The size of your deductible
Because each insurance company is likely to quote you a different cost for your premiums, comparison shopping is a great way to save money on your car insurance. Independent agents in Passaic can obtain customized quotes on your behalf.
Car Insurance Requirements in New Jersey
In New Jersey, drivers can opt to purchase a standard car insurance policy, or they can buy a less expensive, but more limited, basic car insurance policy. A standard coverage car insurance policy must include, at a minimum, the following:
- Liability insurance: This covers damage and injuries you may cause to others if you are responsible for an accident. The minimum coverage requirements are:
- Bodily injury liability coverage of at least $15,000 per person / $30,000 per accident
- Property damage liability coverage of at least $5,000 per accident
- Personal injury protection (PIP) coverage: This covers injuries to you and your passengers if they are sustained in a vehicle collision, regardless of fault. Your policy must include:
- Personal injury coverage of at least $15,000 per person / $30,000 per accident
- $250,000 in coverage for severe or permanent injuries such as brain injuries
New Jersey also permits you to carry just a basic coverage policy, which is much less expensive but provides very little in the way of protection. A basic policy provides only $5,000 in property damage liability coverage and $15,000 in personal injury protection. It does not include bodily injury liability coverage but will provide up to $250,000 for very severe or permanent injuries.
Be aware that serious collisions — particularly those that result in significant injuries— are likely to exceed what a basic or standard coverage policy will cover. If that happens, you will be expected to make up the difference out-of-pocket. That is why many drivers in Passaic choose to purchase more liability coverage than the state requires. Some also invest in an umbrella insurance policy to boost their coverage even further. An independent insurance agent can help you compare costs for different levels of coverage so that you can make an informed decision when purchasing a policy.
What Else Can Passaic Car Insurance Cover?
In addition to what is required by the state, the following optional coverage is also available for you to include in your policy:
- Collision coverage: This pays to repair or replace your car if it is damaged or totaled in an accident, regardless of fault. This optional coverage is typically required by lenders if you are still paying for your vehicle and by dealerships if you are leasing it.
- Comprehensive coverage: This pays to repair or replace your car if it is damaged in a non-collision event such as a flood. This optional coverage is typically required by lenders if you are still paying for your vehicle and by dealerships if you are leasing it.
- Uninsured motorist coverage: This pays for your damage and medical treatment if you are in a collision that is the fault of an uninsured, underinsured, or hit-and-run driver. It is estimated that more than 10% of drivers in New Jersey are uninsured, so this coverage can prove quite valuable.
- Roadside assistance and towing: This provides covered assistance if your vehicle becomes disabled while you are out on the road.
- Rental reimbursement coverage: This can pay for the cost of renting a comparable vehicle while yours is being repaired due to damage sustained in a covered event.
Talk to your insurance agent to learn more about each of these coverage options and for help deciding whether they are a good fit for you.
Do You Have Coverage against Auto Theft in Passaic?
Imagine walking out of your home or the grocery store only to find that your car is missing. While not terribly common, car theft can set you back a lot of money if you are not insured. The good news is that the auto theft rate in New Jersey, and Passaic specifically, is lower than the national average. There are about 150 reported car thefts in Passaic every year.
- National number of auto thefts per 1,000 vehicles: 2.94
- New Jersey number of auto thefts per 1,000 vehicles: 1.74
- Passaic number of auto thefts per 1,000 vehicles: 2.17
In order to be compensated for a stolen vehicle, you must have comprehensive insurance included in your policy. This optional insurance can also cover other types of non-collision-related damage such as that caused by falling objects, fires floods, and vandalism.
Why Work with an Independent Insurance Agent in Passaic?
Vehicle owners in Passaic can save money on their car insurance by shopping for coverage through an independent insurance agent. These agents are free to work with a variety of reputable insurance providers in order to help you find the best policy to meet your coverage and budgetary needs.
Find an insurance agent near you to start comparing quotes.
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