Car Insurance in New Jersey

New Jersey Car Insurance
It is mandatory for every car owner in the state of New Jersey to have their car insured before it can be driven on the state roads and highways. In New Jersey, car insurance is of two types:

  • Standard Policy; and
  • Basic Policy.

These are divided into different categories, depending on what they cover and include:

Personal Injury Protection

Under this coverage, your insurance will pay for any injury suffered by you or any other person involved in an accident. It is also referred to as a ‘no-fault’ coverage at times because it does not matter who caused, or was responsible, for the accident. This coverage plan has two parts:

  1. Covering medical expenses and the entire cost of treatment; and
  2. Reimbursing other less tangible expenses, for example, to make up for the loss of a job or to pay an aide to help you recover.


Unlike the ‘no-fault’ coverage provided by Personal Injury Protection, liability covers expenses caused when you are at fault. It is paid to the other party which has been hurt by an accident caused by you. It also covers lawyer fees to defend you if you have been at fault in an accident. There are two types of liability coverage:

  1. Bodily Injury Liability Coverage

Under this coverage, expenses are paid for claims and lawsuits regarding people who are injured or die as a result of injury caused by you. It will also cover expenses caused by you to others such as for an injury or loss of a job.

  1. Property Damage Liability Coverage

This covers expenses for lawsuits and claims by people whose property (such as a car) has been damaged as a result of a motor accident caused by you.

Uninsured Motorist Coverage

This type of coverage takes care of injury to you or damage to your property as a result of an accident caused by an uninsured motorist.
Underinsured Motorist Coverage
This type will cover expenses caused by a motorist who has insurance but whose insurance is less than your underinsured motorist coverage.

Collision Coverage

As the name suggests, this covers expenses caused to you as a result of collision with another motor vehicle.

Comprehensive Coverage

This covers losses due to accidents other than collisions like vandalism or natural calamities. It will cover collision with an animal though.

What are the minimum New Jersey car insurance requirements?

In the state of New Jersey, cars must fulfill the following insurance requirements: $500 for property damage, $15,000 per person in one accident, $30,000 for total damage in one accident. These requirements have been set by the department of motor vehicles in this state. Insurance has been made mandatory for all kind of vehicles and motorcycles.

Are cheap car insurance quotes new jersey also the best ones?

Not necessarily. Cheap car insurance quotes for New Jersey may seem attractive, but you have to be mindful of the fact that whichever insurance you are going for has to be sufficient to cover the liabilities of the minimum insurance cover in this state. This is $15,000 for bodily injuries or death to one person, $30,000 for each accident and $10,000 for property damage.

Search DMV Locations