Car insurance is mandatory in New Jersey, but the type and cost of that coverage can vary significantly. Every day, consumers discover that there are. Mandatory auto insurance coverage in New Jersey means that, at a minimum, your vehicle is covered by a basic policy. MoneyGeek also ranked the best auto insurance companies in New Jersey for those who want solid service and affordable rates.
New Jersey is a no-fault state, meaning that your PIP (personal injury protection) insurance coverage pays for your own medical treatment after an accident, regardless of who is at fault for the accident. Drivers who don't meet these minimum state car insurance requirements can face fines, penalties, and even jail time. Fully understanding the details of the policy before you sign it can be difficult, especially when it comes to the insurance jargon described on the car insurance statements page. New Jersey's basic auto policy doesn't provide coverage for uninsured (UM) or underinsured (UIM) people.
These prices are just estimates based on the rates of an average New Jersey driver and should not be used to compare insurance prices. 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. Each insurance company that is insured and managed is an independent legal entity that is only financially responsible for its own insurance products. For this study, MoneyGeek analyzed and compared car insurance rates in New Jersey according to the mandatory minimum car insurance limits specified by state law.
This ambiguity is what insurance companies hope consumers don't understand, as it saves them quite a bit of money on the basic insurance benefits they offer. You must show proof of insurance when you sign up, as it's illegal to drive in New Jersey without valid car insurance. Before you blindly sign a contract with the insurance company, it's important to take the time to understand the insurance coverage beyond the premium paid. This amount should cover damage to cars and property that you or someone else driving your car may have damaged.
According to the laws of the state of New Jersey, there are several penalties for driving without insurance. The New Jersey Association for Justice is an organization dedicated to protecting New Jersey families by practicing and improving laws to ensure safer products and workplaces, a better environment and quality health care.