Car Insurance in Princeton, NJ

New Jersey law requires vehicle owners in Princeton to carry car insurance. Whether you get rear-ended on Nassau Street, cause a multi-vehicle collision on the US 1 Freeway, or have a minor fender-bender in a parking lot, a good auto insurance policy can shield you from significant financial losses.

Finding the right car insurance is easy when you work with a local independent agent. These agents can help you compare customized car insurance quotes from some of the area’s best insurance companies. Contact an independent insurance agent in Princeton to get started.

How Much Does Car Insurance Cost in Princeton, NJ?

The average cost of car insurance in New Jersey is higher than the national average. Shopping around for the best rate can save you a lot of money.

• National average annual car insurance cost: $1,311
• New Jersey’s average annual car insurance cost: $1,595

Of course, an average rate can only give you a ballpark idea of how much a policy will cost you. Rates can vary significantly among drivers because insurance companies assess risk and calculate costs according to several factors such as:

• Your vehicle’s make, model, year, and value
• Your age, gender, occupation, marital status, and driving record
• Information about the other licensed drivers in your household
• Your claims history and credit score
• The amount of liability coverage you wish to purchase
• Which, if any, coverage options you want to include in your policy
• The size of your deductible

You can often qualify for car insurance discounts if you have a long, safe driving record, are a student with good grades, or are bundling your car insurance with another policy like home insurance or renters insurance. Ask about these and other potential discounts when you contact insurers to obtain quotes.

Every insurance company has its method for calculating premiums, so they are all likely to quote you a different price for coverage. Comparison shopping lets you choose the policy offered at the most affordable price. Independent agents make comparison shopping easy.

Is Car Insurance Required in Princeton, New Jersey?

New Jersey state law mandates that all vehicle owners in Princeton must have a car insurance policy that meets or exceeds the state’s minimum coverage requirements.

Because of the NJ Automobile Insurance Cost Reduction Act of 1998, residents of this state have the option to meet the coverage requirements of a standard car insurance policy, or they can save money by purchasing a basic policy instead.

Basic policies cost much less than standard policies because they do not hold policyholders to the same coverage requirements as a standard policy. 

However, the coverage basic policies provide is minimal and is only ideal for people with minimal assets and who cannot afford a standard policy.

What Are the Requirements for a Standard Car Insurance Policy in Princeton, NJ?

Princeton residents purchasing a standard car insurance policy will need to meet or exceed the following coverage requirements:

• Personal injury protection insurance (PIP): This covers medical expenses and lost wages for you and your passengers if you are injured in a collision, regardless of fault. Your policy must include, at a minimum:
  • $15,000 in PIP coverage per person
  • Up to $250,000 in PIP coverage for specific serious injuries
• Liability insurance: This covers other people’s property damage and any medical bills that go beyond what their PIP coverage can pay for if you are at fault for a collision. Your policy must include, at a minimum:
  • $15,000 in bodily injury liability coverage per person
  • $30,000 in bodily injury liability coverage per accident
  • $5,000 in property damage coverage per accident
• Uninsured motorist insurance (UIM): This can pay for property damage and medical bills that exceed what your PIP insurance can cover if you are in a collision caused by an uninsured or underinsured driver. Your UIM coverage amounts must match your liability coverage amounts. At a minimum, your policy needs to include:
  • $15,000 in UIM bodily injury insurance per person
  • $30,000 in UIM bodily injury insurance per accident
  • $5,000 in UIM property damage coverage per accident

What Does a Basic Car Insurance Policy Cover in Princeton, NJ?

Princeton residents who need the cheapest policy possible to remain compliant with the law while driving can buy a basic car insurance policy. These policies provide the following:

• Personal injury protection insurance: This covers medical expenses if you or your passengers are injured in a collision, regardless of fault. A basic policy provides:
  • $15,000 in PIP coverage per person
  • Up to $250,000 per specific injury like irreversible brain damage
• Liability insurance: This covers other people’s property damage if you are at fault for a collision. A basic policy provides:
  • $5,000 in property damage coverage per accident
  • The option to purchase $10,000 in bodily injury liability coverage per accident

A basic policy provides no coverage for accidents caused by uninsured motorists.

What Else Does Car Insurance Cover in Princeton, NJ?

In addition to the coverage mentioned above, you can expect your car insurance provider to offer several coverage options. Some of the options you may want to consider include:

• Physical damage coverage: This can pay to repair or replace your vehicle. Though not required by law, this coverage is typically required by lenders if you are still paying for your car and by dealerships if you are leasing it. Physical damage coverage has two parts:
  • Collision coverage: This covers the cost to repair or replace your vehicle if it is damaged or totaled in a collision, regardless of fault.
  • Comprehensive coverage: This covers the cost to repair or replace your vehicle if it is damaged or totaled by a non-collision event such as a hailstorm or theft.
• Towing and roadside assistance: This covers the cost of a service call if your car breaks down and you need professional help or a tow.
• Gap insurance: This can pay off your car loan or buy out your lease if your vehicle is totaled in a covered event, but you still owe more than it is worth.
• Rental car reimbursement: This covers the cost of renting a vehicle while you have yours repaired following a covered event.
• Windshield and glass replacement coverage: This can cover the cost of replacing the safety glass in your car’s windshield, windows, or sunroof if it is cracked, shattered, or damaged.
• Umbrella insurance: This is a separate policy that your car insurance provider may offer. It offers an affordable way to significantly boost all of your personal liability coverage well beyond the coverage limits of your primary policies.

An independent agent can help you decide which, if any, available options are a good fit for you.

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What Is the Penalty for Driving without Insurance in Princeton, NJ?

Driving without insurance is illegal in New Jersey, and this state isn’t playing games. If caught, you can face:

• For a first offense:
  • Fines ranging from $300 to $1,000
  • An annual surcharge of $250 for three years (for a total of $750)
  • The revocation of your driver’s license for one full year
  • The completion of community service for a length determined by the court
  • Possible vehicle impoundment with a $100 fee to retrieve it from the pound
• For a second or subsequent offense:
  • Fines ranging from $500 to $5,000
  • An annual surcharge of $250 for three years (for a total of $750)
  • The revocation of your driver’s license for two full years
  • The requirement to complete up to 180 hours of community service
  • Up to 14 days in jail
  • Possible vehicle impoundment with a $100 fee to retrieve it from the pound

An uninsured driving conviction on your record can also result in higher car insurance rates. Despite all the consequences, New Jersey has a high rate of uninsured drivers.

• Percentage of US drivers who are uninsured: 12.6%
• Percentage of New Jersey drivers who are uninsured: 14.9%

Fortunately, if you have a standard New Jersey car insurance policy, it includes uninsured motorist insurance. This means that if you are in a collision caused by an uninsured driver, you will be able to quickly receive the compensation you are due without the need to go through lengthy legal channels.

Does Princeton, NJ Have a High Auto Theft Rate?

The average auto theft rate in New Jersey is lower than the national rate, and in Princeton, the rate is even lower. Residents of this city report an average of 5 stolen cars a year. 

• National auto theft rate per 1,000 people: 2.29
• New Jersey’s auto theft rate per 1,000 people: 1.24
• Princeton’s auto theft rate per 1,000 people: 0.10

If your car is stolen, you can only receive compensation from your insurance provider if your policy includes comprehensive (or “other than collision”) coverage. This insurance covers against a wide range of non-collision hazards like floods, garage fires, and windstorms.

If you are financing or leasing your car, you likely have this optional coverage already. If not, you may want to ask how much it would cost to add comprehensive coverage to your car insurance.

What Are the Best Car Insurance Companies in Princeton, NJ?

The best car insurance companies in New Jersey are the ones that have a reputation for consistently providing their policyholders with excellent coverage, responsive customer service, and competitive rates.

Independent agents in Princeton have teamed up with many of the area’s most highly rated insurance providers so they can offer you a selection of policies and quotes from companies you can rely on if you need to file a claim.

How Can Independent Insurance Agents in Princeton, NJ Help Me Find the Best Car Insurance?

When you looking for the best car insurance policy to meet your coverage and budgetary needs, a local independent agent can help. Because they are independent, these agents are free to shop rates from competing providers to find the coverage you want at the most affordable price.

It doesn’t cost anything to work with one of these experienced insurance professionals. Contact an independent insurance agent in Princeton when you are ready to get answers to your coverage-related questions and to start comparing customized car insurance quotes.