How Much Car Insurance Do I Need

Like most states in the U.S., New Jersey makes it necessary for drivers to have car insurance. If you get into a car accident and someone ends up hurt, or if your vehicle is damaged, liability insurance will help out with some of the costs. There are minimum requirements for car insurance in NJ, as well as additional options if you want more coverage.

 

Minimum Requirements for Car Insurance in NJ

There are two types of necessary insurance coverage packages to choose from in the state of NJ: Basic and Standard. While many states have one choice for the most basic car insurance package, New Jersey has two options. The requirements vary based on the type of policy you choose.

 

Basic Policy Requirements

Here’s a summary of the car insurance coverage requirements with a Basic policy:

 

  • Bodily Injury: This is not required, but it is available.
  • Property Damage: $5,000 / accident
  • Personal Injury Protection: $15,000 per person per accident
  • Uninsured or Underinsured Motorists: This is not available.
  • Collision and Comprehensive: This is not required, but it is available based on your insurance provider.

 

Standard Policy Requirements

The following is a summary of the car insurance coverage requirements with a Standard policy:

 

  • Bodily Injury: $15,000 per person and $30,000 per accident
  • Property Damage: $5,000 / accident
  • Personal Injury Protection: $15,000 per person per accident
  • Uninsured or Underinsured Motorists: This is not required, but it is available.
  • Collision and Comprehensive: This is not required, but it is available.

 

The Standard package also comes with options regarding the right to sue, which is the main difference between this and the Basic coverage package.

 

Optional Car Insurance Coverage

If you want to have additional car insurance coverage that goes beyond what you’re offered with a Basic or Standard policy, these are your primary options:

 

  • Collision: Collision coverage pays in part or in full for damages to your vehicle that are the result of getting into an accident with another vehicle that was moving.
  • Comprehensive: Comprehensive coverage protects your vehicle from non-vehicle accidents, like bad weather or vandalism.
  • Coverage for towing and labor needs.
  • Coverage for rental cars, which is a good option if you travel a lot.

 

Note that while New Jersey does not require you to have collision coverage or comprehensive coverage, it may be required by a financing company if you have a car lease or a car loan.

 

Low-Cost Car Insurance

In New Jersey, there’s something called a Special Automobile Insurance Policy. In order to qualify, you have to have Federal Medicaid with hospitalization. This program helps people to purchase car insurance who can’t afford Basic or Standard coverage. If you get into a car accident, you will only be covered when it comes to medical costs. A Special Automobile Insurance Policy costs $360 per year, and slightly more if you need to pay in two installments.

Once you know how much car insurance is required in New Jersey and whether or not you want to add on additional types of coverage, you can start looking for an insurer. Compare prices from a variety of insurers to find the best price possible. If you want to go with one insurer over another, but they don’t offer the best price, don’t hesitate to ask for them to price match. Some companies will offer an introductory rate in order to secure you as a customer.