New Jersey Car Insurance: A Guide to Purchasing Car Insurance for Residents

Purchasing car insurance can be difficult enough without having to wonder if your insurance policy is meeting state requirements. For this reason it is recommended that all residents unfamiliar with state policies touch base with the New Jersey Department of Banking and Insurance located in Trenton to find out the particulars of New Jersey auto insurance. This can be done by visiting their website at http://www.state.nj.us/dobi/index.shtml.

New Jersey drivers are some of the most thoroughly insured in the United States. New Jersey is a no fault state, which means that in the event of an accident each individual will be covered by their own insurance policy, regardless of which is responsible for the accident. This was done in an attempt to limit the number of lawsuits brought forth every year. There are exceptions to the no fault policy, however. Sometimes the injuries suffered by the victim are severe enough, and their medical bills excessive enough, that the state will deem that the driver responsible for the accident be held liable for their expenses. For this reason all New Jersey drivers should be covered by a liability policy. Minimum liability levels in NJ are fifteen thousand dollars for medical expenses incurred by a single driver, thirty thousand dollars for the combined medical expenses of the driver and all of their passengers and five thousand dollars in property damages, including those inflicted upon the victim’s vehicle. Since medical bills and repair costs can quickly soar over the amounts, and the insured will be held personally responsible for the excess, it is strongly recommended that more than the minimum liability insurance be purchased.

Because of its no fault status New Jersey also requires that its drivers be covered by PIP, or personal injury protection, insurance. This will pay not only for their medical expenses but will help with lost wages and funeral expenses (if necessary) and may be extended to the other occupants of the vehicle in the event of an accident. Those who are covered by a good health insurance policy may choose to purchase only the minimum level of PIP coverage.

Uninsured motorist coverage is an essential requirement for NJ residents because of its proximity to NYC; New York does not require that its drivers purchase liability insurance. Uninsured motorist insurance will help pay for medical expenses and repair costs of those drivers who are involved in an accident with a driver who does not possess insurance, drivers whose insurance is inadequate to pay for the damages inflicted or those insured who find themselves the victims of a hit and run.