Get New Jersey Auto Insurance State Guides, Laws and Regulations before You Buy Insurance
Auto insurance is mandatory in New Jersey. At the bare minimum, NJ drivers must carry liability insurance. This covers your financial responsibility for damage you may do to others, or their property. This is called a “basic policy,” and can be bought from any insurer licensed to do business in the state.
Full coverage is not required by any NJ law, but many drivers feel more comfortable protecting their investment with this type of policy. In addition to your monetary responsibility for damages you cause, these policies help pay for damage to your vehicle caused by things like weather, theft, and uninsured drivers.
Key Takeaways
New Jersey law requires that you cover liability coverage of $15,000 / $30,000 / $5000. That means:
New Jersey auto insurance minimums exist to protect drivers financially in case of an accident. But many drivers feel they need more coverage than the state minimum. That’s because our modern vehicles are faster than ever, and more capable of causing damage to other people and their property.
New Jersey only requires that drivers carry a minimum of liability coverage. But other coverages are available. If you have a car payment or other lienholder, they may require that you carry “full coverage.”
$15,000 to $30,000 Personal Injury
This coverage helps to pay for medical care for one person who is injured. But it may not be enough coverage. With these limits, medical costs above $15,000 for one person, or $30,000 for two or more people become the responsibility of the at-fault driver.
$5,000 Property Damage Liability (PDL)
Most vehicle accidents cause some amount of property damage, whether it’s to other vehicles on the road, real estate, or another person’s belongings. This coverage pays for these damages. If these damages are more than $5,000, the at-fault driver will need to pay the difference.
No. As of 2022, NJ drivers aren’t required to have this coverage. However, it’s included in most full-coverage packages, and might be available as an add-on or endorsement.
The Safe Passing Law is new as of 2022. If you see a vehicle pulled over on the shoulder, New Jersey drivers are required to change lanes if possible, or slow down and create at least four feet of space for safe passing. If you cannot create four feet of space, NJ drivers must slow down to 25 mph or less to pass the vehicle safely.
New Jersey takes auto insurance regulations very seriously, and the penalties can be severe. The first time you’re found driving without insurance, your fine will be anywhere from $300 to $1,000, PLUS community service and a license suspension.
After that, you’ll be required to pay $250 every year for the next three years, totaling $750, in additional fines.
NJ drivers won’t accrue points on their license for the first instance of driving without insurance. However, after that, you will get nine (9) points on your driver’s license. This will make auto insurance awfully expensive.
Most auto insurance will slowly increase your premium (price) over time. This is a marketing tactic, not your imagination. Therefore, it makes sense to call around and shop for auto insurance ever few years. Insurers will try to gain your business by offering a more competitive price.
Other ways to decrease your costs for NJ auto insurance are:
Read More: 8 Simple Ways to Save You 90% On Your Car Insurance
Insurance companies rate drivers and vehicles by their risk level. Electric vehicles (EVs), fast foreign cars, very heavy vehicles, and unsafe drivers tend to cost the most to insure. When creating your contract and deciding on your premium, insurers will consider:
NJ Auto Insurance Rates by Carrier
We scoured the web to find the best New Jersey auto insurance rates. However, your final price will depend on the issues listed above.
| Carrier | Yearly Average Premium in New Jersey |
| GEICO | $1,372 |
| NJM | $1,242 |
| Selective | $1,159 |
| Travelers | $1,453 |
For help finding New Jersey auto insurance quotes, contact us today or simply put your zip code below and hit “Get A Quote” !
Here are the most frequent questions we hear about NJ auto insurance.
Is auto insurance mandatory in NJ?
Yes. New Jersey requires all drivers to keep at least a minimum amount of liability coverage. Failure to do so can lead to expensive fines, ongoing surcharges, points on your license and community service.
Do I need full coverage auto insurance?
No. New Jersey law states drivers must have full coverage auto insurance. However, your bank or lienholder may require it if you are still paying for the vehicle.
What is the cheapest auto insurance in New Jersey?
Our research suggests that Selective and GEICO offer the most affordable auto insurance policies. However, this can vary based on your driving history, type of vehicle, zip code and more.
How often should I shop for auto insurance?
You will save money by shopping around for auto insurance every few years. Spend some time getting quotes from other insurers. You might save a lot.
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