New Jersey Car Insurance
New Jersey Car Insurance Requirements
Auto insurance is mandatory in the State of New Jersey. The law requires that all drivers carry 3 types of insurance including:
- Liability insurance: when at fault, this coverage plan pays for the damages you’ve cost others, excluding medical expenses
- Personal Injury Protection (PIP): pays for your medical costs if you or others under your plan have been injured in a car accident. It also pays for your medical expenses if you were not at fault
- Uninsured Motorist Coverage: this coverage protects you if you are caught in an accident with someone who does not carry auto insurance
Although there are mandatory laws that drivers must abide in New Jersey, car insurance plans vary between companies. There are 2 types of policies that people typically purchase: the Basic Policy and the Standard Policy.
Basic Auto Insurance Policy
This plan is recommended to those who have few family responsibilities and do not own many assets such as younger drivers. It lends a smooth transition from school to work, providing minimum protection at an affordable price.
Standard Auto Insurance Policy
This plan provides the driver a number of different coverage options and offers a variety of additional protection.
Here is a chart displaying the differences between each auto insurance policy plan in New Jersey.
As you can see from the chart, when comparing the two auto insurance policies that New Jersey offers, the Standard Policy clearly provides more comprehensive coverage. Although you always have the option to buy additional coverage for either package, the reason why the basic plan is made available is to provide those who cannot afford it.
If you live in New Jersey and decide not to have auto insurance, you carry the risk of getting caught. Driving is a privilege, it is not a right. Breaking the state’s laws can get your license suspended or revoked, resulting in fines or even imprisonment.
How Do Demerit Points Affect You?
- If you get 6 or more points within 3 years on your current record, you will be assessed a surcharge
- If you get 12 or more points on your current driving record, your license will be immediately suspended. You will receive the notice in the mail
- Getting points on your current driving record will most likely increase your auto insurance rates. To get further information and details on it, contact your insurance provider
Note: There are possible methods to deduct points off your current record. Every New Jersey car insurance provider offers different ways to do so, like if you maintain a violation and suspension-free record for one year or take qualified courses approved by the State of New Jersey Motor Vehicle Commission (MVC).
After grasping a better understanding of what New Jersey expects out of their drivers, it is now your responsibility to choose to have auto insurance. There are various types of coverage options, including the Basic Plan if you want to start at a lower premium rate.
Auto insurance companies in New Jersey offer discounts and many different ways to save money on your monthly premiums. To see which plans and prices are best for you, acquire insurance quotes and compare. You can start by entering your zip code, then in a matter of minutes see how much more money you could save. Start today.
