New Jersey auto insurance is compulsory for driving a vehicle in New
Jersey. Auto insurance law of New Jersey offers easy options for insuring
your vehicle. However, there is no single standard cost or type of coverage
under New Jersey auto insurance. You pay a particular percentage depending
on different determinants like your age, your marital status, make of your
vehicle, particular place, driving habits, etc. You decide on specific quote
after considering and reviewing options of different insurance companies.
Why do I need auto insurance?
If you drive without New Jersey auto insurance, you face severe penalties
like suspension of your driving license, hefty fines, suspension of vehicle
registration, jail terms, etc. You also pay for lost wages, pain, and other
sufferings of people in case of any accident.
Types of New Jersey auto insurance policies
New Jersey auto insurance offers two types of insurance policies:
Basic Policy - This low-cost policy is compulsory for all drivers.
Although benefits are few, you receive basic and minimum protection at
affordable rates. This policy is most suitable for new and young drivers.
Standard Policy - You receive widespread protection covering your
assets but at higher rates than basic policy.
Coverage available under auto insurance
New Jersey auto insurance offers different coverage according to your
policy.
Property Damage Liability - When you cause any accident and damage
other’s property, you receive $5,000 per accident coverage under basic
policy but receive higher coverage under standard policy.
Bodily Injury Liability - This covers injury claims of people
affected by your accident. Basic policy offers an optional overall coverage
of $10,000 per accident for all affected persons. Standard policy offers
coverage of $15,000 per person for each accident and overall $30,000 for all
persons in accident with higher limits.
Personal Injury Protection - This provides coverage for physical
injuries to you and others under your policy. Basic policy offers coverage
of $15,000 per accident per person with maximum limit of $250,000 for
permanent injuries or other specifically mentioned injuries. Standard policy
offers minimum coverage of $250,000 per accident per person and up to
$250,000 for any permanent injuries. You can select specific coverage limits
under standard policy.
Basic policy of New Jersey auto insurance does not offer any
comprehensive, collision, underinsured or uninsured motorist coverage.
Standard policy though provides optional comprehensive and collision
coverage and underinsured or uninsured motorist coverage.