Most people should also choose higher liability coverage limits than those required by New Jersey law. Mandatory auto insurance coverage in New Jersey means that, at a minimum, your vehicle is covered by a basic policy. This type of New Jersey car insurance coverage is used to repair your vehicle when physical damage occurs due to incidents not related to a collision (subject to the deductible). Some car insurance qualifying factors, such as your driving history, can significantly affect your insurance costs.
Learn more about when to cancel optional coverage and penalties for driving without insurance in New Jersey to make sure you're paying for the coverage you need. Collision insurance covers repair or replacement costs if you have an accident, hit an object, or roll over your car. If you lease or finance your car, you may be required to have types of coverage that are not required under New Jersey law. Some states require drivers to have PIP or MedPay, while collision insurance is often mandatory if you rent or finance your car.
Comprehensive insurance covers repair or replacement costs if your car is damaged by falling objects, natural disasters, floods, fires, theft, vandalism, or animals. The consequences of driving without insurance exceed the monthly insurance premium and may result in the following penalties. Car insurance is mandatory in New Jersey, but the type and cost of that coverage can vary significantly. If you have a car in New Jersey, you can't drive it unless you purchase auto liability insurance that meets the state's minimum coverage statutes.
Learn about your coverage options so you can choose the car insurance in New Jersey that best fits your needs, goals and budget. If you can't drive your car because of a covered loss, this coverage helps pay for a car rental or other transportation expenses so you can get back on the road. The terms, definitions and explanations of insurance are for informational purposes only and do not replace or modify in any way the definitions and information contained in the individual pages of contracts, policies or insurance statements, which are decisive. Lenders often require collision and comprehensive insurance, in addition to the insurance that you must have under New Jersey law when financing a car.