New Jersey's Basic Auto Insurance Policy (2024)

FAQs

What is the basic car insurance coverage in NJ? ›

Drivers must meet minimum coverage requirements: Every driver in New Jersey is required to carry a minimum amount of coverage. As of January 1, 2023, the mandatory insurance minimums are as follows: $25,000 bodily injury liability per person. $50,000 bodily injury liability per accident.

While different states mandate different types of insurance and there are several additional options (such as gap insurance) available, most basic auto policies consist of: bodily injury liability, personal injury protection, property damage liability, collision, comprehensive and uninsured/underinsured motorist.

In New Jersey, weather events like severe storms, tropical cyclones, and serious winter weather are becoming increasingly common. These weather events cause insurers to pay out a higher number of claims, which tend to be more expensive and less predictable. As a result, they have to raise rates to keep pace.

Liability insurance: In New Jersey, drivers must carry at least $25,000 in bodily injury liability coverage per person and at least $50,000 in bodily injury liability coverage per accident. For property damage liability coverage, the minimum policy limit is $25,000.

Basic coverage is a “Named Peril” policy, which means that for a loss to be covered, the peril must be listed by name on the declarations page. In addition, you carry the burden of proving that a loss was caused by an included peril. Basic Form is typically the cheapest of the three coverage options.

The most basic type of car insurance coverage, liability, covers another driver's injuries or property damage if you're found liable for an accident, up to the limits of your policy. Comprehensive and collision coverage, which are optional, can help cover costs to repair or replace your car, regardless of fault.

You can buy many different types of car insurance policies. However, most basic car insurance includes liability protection. In fact, most states require a certain limit for these policies. They may also want you to have uninsured/underinsured protection and comprehensive coverage.

While collision coverage pays for repairs to your vehicle after a car accident, comprehensive insurance generally protects your vehicle while it is parked. It also fills in some of the gaps in the typical collision insurance policy, such as if you hit an animal while driving.

It mitigates risk by transferring potential financial burdens to providers in exchange for regular (typically monthly) payments known as premiums. An insurance policy can help you cover expenses related to routine healthcare, property damage from a natural disaster, or veterinary costs when your pet gets sick.

Starting at low rates of $58 a month on average, Geico offers the cheapest car insurance in New Jersey, according to our research. You can also find affordable rates from NJM, State Farm, Travelers and Selective Insurance in the Garden State.

How much is the average car insurance in NJ? ›

The average car insurance cost in New Jersey is $2,412 annually for full coverage and $984 for minimum coverage, according to data from Quadrant Information Services. These figures place New Jersey car insurance rates 4 percent more than the national average for full coverage and 56 percent more for minimum coverage.

NEW JERSEY — Car insurance rates in New Jersey are expected to increase by nearly 10 percent by the end of 2024, according to a new analysis. The spike is in line with a projected 22 percent increase in full-coverage premiums nationwide.

Basic insurance

Mandated auto insurance coverage in New Jersey means that, at a minimum, your vehicle is covered by a basic policy. A basic policy provides property damage limits of $5,000 per accident, and personal injury protection (PIP) of $15,000 per person.

In New Jersey, the minimum coverage auto insurance includes $25,000 for bodily injury liability per person, $50,000 for bodily injury liability per accident and $25,000 for property damage liability per accident.

Full coverage insurance in New Jersey is usually defined as a policy that provides more than the state's minimum liability coverage, which is $15,000 in bodily injury coverage per person, up to $30,000 per accident, and $5,000 in property damage coverage.

In almost every state, drivers are only required to carry liability insurance. Basic car insurance is often known as liability insurance. Requirements vary by state, but basic auto insurance can be broken down into two main types of liability insurance: personal injury and property damage.

Key takeaways. The average monthly car insurance cost in New Jersey is approximately $201 for full coverage and $82 for minimum coverage. New Jersey drivers with a DUI conviction pay average rates that are 105 percent more compared to drivers with a clean driving record.

If you have only liability car insurance, your own vehicle damage isn't covered if you cause an accident or if it's damaged by weather or other incidents like fire. If you have full coverage car insurance, your car is covered for accidents regardless of fault and for non-collision damage.