April 18, 2024

Auto Insurance New Jersey – What You Need to Know

Auto insurance New Jersey is a must-have for all drivers. Those without coverage could face fines and lose their driving privileges.

Most car insurers provide a user-friendly online quote tool with fairly accurate prices. Depending on your individual circumstances, you may wish to add additional coverages in order to boost your protection.

Basic Policy

In New Jersey, car insurance is a state requirement. This policy shields your vehicle from accidents, theft and weather damage that could otherwise wreak havoc.

To save money, it’s essential to compare your options before purchasing any policy. To do this, utilize a site that offers personalized rates.

Auto insurance New Jersey offers a basic policy with lower limits than its standard counterpart, but may not provide enough protection for some drivers. Depending on your individual situation, you may need to purchase additional coverage beyond what the state’s minimum requirements require.

Basic policies typically provide property damage liability of $5,000 per accident and personal injury protection (PIP) of $15,000 per person. Bodily injury liability isn’t included in these limits but can be added on as an optional feature. PIP pays your medical expenses, funeral costs and lost income if you’re injured in an accident.

Optional Coverages

Auto insurance New Jersey provides a selection of optional coverages that can be added onto your policy as an add-on. These coverages offer financial protection in case you and your family suffer financial harm in the event of a car accident.

Property Damage Liability: This policy protects your assets in the event you are found at fault for an accident that damages another driver’s vehicle or property. The minimum limits are $15,000 per person and $30,000 overall.

PIP (Personal Injury Protection): Personal Injury Protection pays medical expenses and reimburses other expenses caused by an accident. New Jersey drivers must purchase PIP with a minimum limit of $15,000, though they have the option to increase it up to $250 million for additional financial security.

Funeral expense and death benefits are available as optional coverages to ease some of the financial strains associated with a car accident. Often at lower costs than full coverage policies, these options should be taken into account when shopping for cheap NJ auto insurance plans.

Uninsured Motorist Coverage

Uninsured/Underinsured Motorist Coverage, also referred to as uninsured/Underinsured Motorist Insurance (UMC), helps you prevent getting hit by a driver who lacks insurance. In such cases, you can file a claim under your own policy to cover medical expenses and other damages not covered by the at-fault driver’s policy.

New Jersey requires most drivers to have car insurance, which pays for repairs and medical bills for their car. It may also cover passengers and their injuries from an accident with another driver, as well as any property damage resulting from said collision.

Many people are unaware that they may also have Uninsured/Underinsured Motorist (UM/UIM) protection included in their auto insurance. This optional coverage can help mitigate financial damages from accidents. It’s a wise decision to add this coverage onto your policy.

Bodily Injury Liability Coverage

Bodily injury liability coverage provides financial security if you cause a car accident that injures or kills someone. It pays up to your policy limit for pain and suffering compensation, excess medical benefits and lost wages that you owe the injured party.

Liability coverage is included as part of your auto insurance package and required in most states. It can also help cover legal expenses like attorney fees and court awards.

The cost of bodily injury liability coverage varies based on several factors, such as your state and driving history. For instance, if you’ve had an accident or traffic violation within the last few years, additional costs may apply more heavily than for drivers with no accidents.

New Jersey requires drivers to carry at least $25,000 in property damage limits and personal injury protection (PIP) of $15,000 per person for minimum coverage. Unfortunately, these amounts only scratch the surface of what drivers really need to cover costs associated with a car accident.

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