Nj auto insurance

No matter where you live in New Jersey, Liberty Mutual rewards your responsible choices with Car Insurance Discounts that could help you save hundreds of dollars a year. As a proud member of the New Jersey community, we offer exclusive savings to members of various college alumni groups, employers and associations across the state, including Rutgers University, Fairleigh Dickinson, Seton Hall and the State of New Jersey employees.

New Jersey Car Insurance Information
As with most states, in order to register and drive your car in New Jersey, the state requires that you have a minimum level of certain types of auto insurance coverage. These include:

  • Personal Injury Protection: $15,000 per person, per accident (up to $250,000 for certain injuries)
  • Property Damage Liability: $5,000 per accident

Most people opt for higher amounts of auto insurance coverage than the state minimum in order to protect themselves in case of an accident. To learn more about New Jersey auto insurance minimums, download this brochure from the New Jersey Department of Banking and Insurance.

Auto insurance is mandatory in New Jersey, but the type and cost of that coverage can vary significantly. Every day, consumers are finding that there are options available to make it easier to comply with the law. The Automobile Insurance Cost Reduction Act mandated that a Basic Policy be available to all drivers.

It is important to realize that you are breaking the law if you drive uninsured. The penalties for driving uninsured are getting more severe — in addition to risking economic loss by not having insurance protection, you risk fines, suspension of driver’s license or registration and even time in jail. In the future, your car could be impounded if you are caught behind the wheel without coverage.

Considerations When Purchasing Car Insurance in New Jersey

There’s a lot to consider when you purchase car insurance in NJ.  Some coverages are required by law, while others are optional. Whether you call us, get an insurance quote online or work with an agent, you’ll have access to experts who will help you fully understand your options, so you can choose a policy that fits your needs and budget.

Selecting The Best Auto Insurance Coverage

There are coverages that help to protect your car and other ones that help to protect your assets. Navigating through your options, selecting the best coverage and setting your limits can be confusing, but our experts are here to help you think through important questions that could influence your decisions:

  • What is the value of the car or cars you are going to cover?
  • Are any or all of your vehicles financed or leased?
  • Where and how do you drive?
  • What other assets and income do you need to protect?
  • What deductibles should you choose?
  • What happens if you have a young driver in the house?

Your Plymouth Rock agent, or one of our licensed professionals, can help you build the right policy to comfortably protect you and your family.

Best Car Insurance Rates in New Jersey

We conducted a study of auto insurance quotes in New Jersey across 50 companies and four driver types to find the cheapest car insurers. Our research showed that rates in the state can differ widely: for example, the cheapest auto insurance quotes in New Jersey for a middle-aged married couple were about $4,630 or 79% lower than the most expensive company. One company’s premium could pay for almost four years of insurance for our married NJ drivers. That’s why you need to compare quotes to get the best rates. Read more, or type your zip code above for a list of cheap companies insuring in your area to start comparison shopping.

  • Cheapest Auto Insurance Companies in New Jersey
  • Best Car Insurance Rates: by City
  • Best Auto Insurance Companies in New Jersey
  • Average Cost in New Jersey: by City
  • New Jersey Auto Insurance Requirements

Cheapest Auto Insurance in New Jersey

We compared quotes from fifty companies in the Garden state to identify the cheapest auto insurance companies in New Jersey for four different kinds of drivers: single young and middle-aged men, and middle-aged and senior married couples.

Car Insurance Requirements in NJ

In order to comply with New Jersey’s car insurance laws, you must choose a car insurance policy. Basic and standard policies are available; you should choose whichever policy best suits your insurance and financial needs.

Basic Policy

The Basic policy option is the more affordable insurance package; however, it offers limited coverage, including:

  • $5,000 of property damage liability (PDL) per accident. This covers damage you may have caused to someone’s property in a car crash.
  • $15,000 of personal injury protection (PIP) per person, per accident. This coverage pays for injuries you suffer in a car crash.
  • Up to $250,000 for very severe injuries, such as permanent brain injuries.

NOTE: Bodily injury liability (BDL) coverage is not included in the Basic policy; however, policyholders are offered the option to purchase $10,000 of BDL coverage.

Standard Policy

The Standard policy option has a higher premium but offers more extensive coverage.

With the Standard policy, you get a minimum of:

  • $15,000 of bodily injury liability (BDL) insurance per person, per accident. This coverage will pay for injuries to anyone not in your car if you cause a car crash.
  • $30,000 of BDL for multiple injured people per accident.
  • $5,000 of PDLper accident.
  • $15,000 of PIP per person in a car accident.
  • Up to $250,000 of PIP for severe or permanent injuries.

Right to Sue

If you choose to purchase the Standard policy, you will have to make a decision on your right to sue if you are injured in a car accident.

Regardless of which right to sue option you choose, you will not be eligible to sue for medical expenses or loss of income, as both of those will be covered by your PIP; you can only sue for pain and suffering.

Unlimited Right to Sue

If you choose the unlimited right to sue option, you can sue a person who caused an accident you were injured in.

Because this is option offers broader rights to sue, it comes with a higher premium.

If you’re looking for cheap auto insurance in New Jersey, having patience can pay off. Rates vary significantly from one company to the next, so it’s wise to compare several quotes rather than settle for the first price you see.

To help you save time and hassle, NerdWallet’s staff analyzed rates from the largest car insurance insurance companies in New Jersey. For each driver profile below we identified the cheapest insurers in the state:

Good drivers

Young drivers

Drivers with one at-fault crash

Drivers with poor credit

Retired drivers

Low-mileage drivers

In comparing your choices, note that New Jersey Manufacturers Insurance serves only people (and their families) employed by the state of New Jersey or one of its counties, municipalities or townships, the federal government, a New Jersey public school, or an organization in the New Jersey Business & Industry Association, or who have some other eligibility factor.

I got quotes for New Jersey’s minimum coverage with five different companies and found that prices varied as much as $466. GEICO was the best option for cheap car insurance option for me (and my driving record), but it might be a different story for you. Quotes are highly personalized, so it’s impossible to say one company is the absolute best for everyone.

Insurance rates are based on algorithms that calculate your individual risk as a driver. That risk profile includes driving specific data like the make and model of your car and your driving record, but it also includes personal factors that are less directly related to your driving record, including your age, your credit score, and your zip code. Even if you know the risk factors that you’re triggering, it’s not easy to predict which company will be the cheapest; every insurance company uses its own formula that weights those factors differently. The only way to find the best company for your particular scenario is to get at least five quotes and compare them.

Really, getting a quote isn’t as big of a fuss as it’s often made out to be. Most of the national companies let you get an online quote in less than five minutes, but if you have to call for a quote, know it’ll add 10 to 15 minutes to the process. If you don’t know your annual mileage or the details of any accidents you’ve had in the last five years, look that up before getting started. Otherwise, it’s as simple as clicking a few buttons and checking some boxes. Personally, I put on a podcast and by the time it was over, I’d already finished getting my quotes.

New Jersey Minimum Liability

Unlike most states, New Jersey offers drivers two minimum insurance coverage options: a basic policy and a standard policy. The basic policy is less expensive than the standard policy, but you also get less coverage (which means that if you are in an accident, you could end up paying more out-of-pocket).

Here are the minimum insurance requirements for each policy:

Basic Policy

  • $5,000 property damage coverage per accident
  • $15,000 personal injury coverage per person/accident

Standard Policy

  • $15,000 bodily injury coverage per person
  • $30,000 bodily injury coverage per accident
  • $5,000 property damage coverage per accident
  • $15,000 personal injury coverage per person/accident

The State of New Jersey only recommends the Basic Policy for people with no family or assets (including income) to protect. The vast majority of residents should opt for a Standard Policy — and you’ll probably want more than the minimum coverage. Adding comprehensive coverage, for example, will help protect your car from hurricane damage.

When you start shopping for your insurance policy, make sure to compare quotes from multiple providers. Each insurer calculates premiums differently, and you want to make sure that you’re getting the right coverage package for the lowest possible rate. Use our guide to the best insurance providers in New Jersey to help you get started.