Auto-insurance is a mandatory requirement in order to drive in the state of New Jersey. Not only does it offer you protection in the event of an accident, it also helps create a safer driving environment for other motorists. Understanding New Jersey auto insurance requirements is therefore very important.
New Jersey auto insurance requirements cover three mandatory types of protection. The first of these is liability insurance. This pays for damages caused by your vehicle to another, but does not offer any compensation for injuries suffered by any of the passengers in either vehicle. The state of New Jersey requires you to carry at least $5000 per accident in liability insurance to cover the cost of damages, but this value can go as high as $10,000 as well. This policy only kicks into action if you are determined to be at fault in the accident.
Personal injury protection is next on the list, and takes care of medical expenses for you and other persons under your policy. Unlike liability insurance, this policy pays for expenses whether or not you are at fault in the accident, causing it to be termed ‘No Fault Coverage’. This is also the most expensive of the three insurance policies you must have. Typically costs vary between$15000 per person per accident to as high as $250,000, though this latter amount is used to pay for very costly procedures and only given in certain cases.
Lastly, New Jersey auto insurance requirements mandate that you carry uninsured motorist coverage as well. Some people choose to drive without insurance, which is a risky move. If you are involved in an accident with such an individual, they may not have enough money to cover the cost of the damages, even if it is their fault. As an added means of protection for you, it becomes important to carry this kind of insurance.
While the state of New Jersey has defined certain basic amounts of insurance that you should carry with you, it is generally advised that you carry a little more than the recommended amount. The extra insurance only guarantees greater protection, something everyone can benefit from.