CAR INSURANCE BY STATE
George Washington Bridge in New Jersey
Insurance Panda guide to New Jersey car insurance

New Jersey gets a bad rap. Judging from what you see on television, it’s full of nothing but mobsters and ultra-tan, greasy party kids. But then again, you can’t believe everything see on television right? New Jersey is actually a state full of diverse, beautiful regions. Northeastern New Jersey, also known as the Gateway Region, lies closest to New York and is the prime spot for those who like to escape the hustle and bustle of New York City. Northwest New Jersey, the Skylands, is mountainous and has a lot of rural area. The Shore dominates the east coast of the state and you can find the Delaware Valley in Southwest New Jersey. Within the central part of the state, woods begin to take over but that doesn’t mean that New Jersey is lacking in population. It’s the most densely populated state in the entire country, which means a lot of motorist on the road no matter what part of the state you live. As a driver, it’s your responsibility to follow the laws to ensure the safety of yourself and others. One of these laws is that you must have insurance.

Average Auto Insurance Prices in New Jersey

New Jersey is often known as the Garden State but that doesn’t mean auto insurance rates are a walk in the park. New Jersey drivers typically pay more than the average American. You would think that going through the turnpike on a daily basis would at least earn you a discount!

  • Current average annual auto insurance premiums in the United States: $1613.49
  • Current average annual auto insurance premiums in Vermont: $1977.32

Average Insurance Rates for the Top Five Most Populated Cities

  1. Newark: $3127
  2. Jersey City: $2580
  3. Paterson: $2873
  4. Elizabeth: $3003
  5. Edison: $2169

New Jersey Minimum Auto Insurance Requirements

 Legal requirements for auto insurance in New Jersey are set up in a different manner than other states. Normally, states request that drivers purchases a minimum amount of insurance but New Jersey likes to offer their residents options. You have the choice of a basic or standard policy.

A basic policy is less expensive and meets the state’s minimum coverage requirements. Limits are as follows:

  • $5,000 Property Damage Liability Coverage per accident
  • $15,000 Personal Injury Protection per person
  • $10,000 Bodily Injury Liability per person (optional)

With a standard policy, you receive a better level of coverage while still meeting state minimums. This plan is typically more expensive. Policy and coverage amount are as follows:

  • $5,000 Property Damage Liability Coverage per accident
  • $15,000 Personal Injury Protection per person
  • $15,000 Bodily Injury Liability per person
  • $30,000 Bodily Injury Liability per accident
  • $15,000 Uninsured/Underinsured Coverage

New Jersey Personal Injury Protection Options

In both coverage options offered by New Jersey, PIP is one of the included policies. This is because New Jersey is a no-fault state, similar to Massachusetts and New York. No matter who causes an accident, your personal insurance company will cover your accident related medical expenses before your health insurance kicks in but you have to first choose what kind of coverage you would like.

  • Full PIP Primary Coverage: This is the main form of benefits to assist you after an accident. It includes lost wages, funeral expenses, service expenses and death benefits.
  • Full PIP Health Primary Coverage: This includes all of the above but will only be tapped after your health insurance has been exhausted.
  • Medical Only PIP Primary: This will act as the first route of coverage but will only cover certain medical expenses. Nothing listed above is included.
  • Medical Only Health Primary: This coverage is only used if your health insurance runs out first.

Penalties for Driving Without Insurance in New Jersey

In New Jersey, you must always carry proof of insurance with you. Either a certificate of self-insurance or an insurance identification card will suffice. If you are caught without either one of these and have insurance, you will likely be issued a citation that you might be able to get waived.

If you really don’t have insurance, you can face a $300 fine, a one year suspension and be forced to complete community service. If you’re still not convinced that insurance is that important and get caught driving uninsured for a second time, the fine goes up to$500, your license could be suspended for two years, you could get 30 days of community service and even spend up to 14 days in jail. In reality, it’d be much easier just to purchase insurance.

How to Get Auto Insurance in New Jersey

When you see evidence of just how serious New Jersey takes uninsured drivers, that may be the nudge you need to start looking for a new policy but when confronted with an ocean of insurance rates, it’s hard to know which policy is the best one for you. Comparing quotes is the best way to get affordable insurance and our comparison tool makes it easy. All you need to do is enter your zip code, fill out a brief form and you’ve got quotes from reputable insurance companies sitting in front. Nice and simple.

Insurance Agents By City/Town In NJ

Additional New Jersey Auto Insurance Resources

The information above is for reference material only and Insurance Panda cannot legally be held responsible for anything written above. For official information, visit these websites: