New Jersey Car Insurance

New Jersey drivers are required by law to carry bodily injury liability, property damage liability, and Personal Injury Protection ("PIP") coverage. The minimum bodily injury liability coverage is $15,000 for one person, $30,000 for all parties in an accident. For property damage liability, the state requires $5,000 of minimum coverage. These required coverage amounts are rather low amounts in light of the damage that can be caused in a car accident. New Jersey drivers would be well advised to purchase optional higher coverage amounts.

PIP Coverage is Required

Minimum PIP coverage limits in New Jersey are $15,000 but can be as high as $250,000 or more for permanent or significant spinal cord injuries, brain injuries, disfigurement, or for medically necessary treatment at a trauma center or hospital until the patient is medically stable. PIP pays for medical bills, lost wages, household services, and funeral expenses for a driver and their passengers following an accident regardless of fault per the terms of the policy.

UIM Coverage

Uninsured/Underinsured Motorist ("UIM") coverage is optional in New Jersey but an important type of coverage. UIM coverage pays damages in the event the driver at fault for an accident is uninsured or does not have enough insurance to pay for the damages sustained by the other driver(s) or passengers. The minimum allowable UIM bodily injury liability coverage in New Jersey is $15,000 for one person, $30,000 for bodily injury damages stemming from the accident.

For example, if a driver in an accident in New Jersey had 15/30 UIM coverage, they would be able make a UIM claim with their auto insurance company and be able to receive up to $15,000 for their own bodily injury damages. With these policy limits, their insurance company would only pay up to $30,000 for all UIM bodily injury claims in the accident. New Jersey drivers can also UIM property damage coverage.

Collision and Comprehensive Coverage

Other important available insurance coverage types in New Jersey include Collision and Comprehensive coverage. These coverage types are not required by law but can be very important in the event of an accident. Also, many financial institutions require vehicle owners to purchase collision and comprehensive coverage as a condition of their loans.

Collision pays for vehicle repairs or vehicle replacement value following a collision regardless of fault. Comprehensive coverage pays for all vehicle repair damage or replacement value for incidents other than a collision such as the tree falling on a car or the car being stolen. There are minimum deductible limits for these collision and comprehensive such as $500, but drivers can also raise their deductible amounts to lower their premiums.

Keep Your Car Insurance Current

New Jersey drivers should never allow their auto insurance policies to lapse. Each day, thousands of New Jersey drivers are involved in car accidents. Uninsured drivers in New Jersey pay fines and may be forced to comply with state financial responsibility laws, which require them to purchase expensive SR–22 Insurance. They can also be held personally responsible for all damages caused in an accident. A car accident can cause hundreds of thousands of dollars in damages. Driving without car insurance in New Jersey is fiscally irresponsible and can lead to financial ruin.

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