No matter where you drive across the country, you must have car insurance. Each state has a different set of rules, regulations, and mandatory coverage that it requires. Here is information that you need to know about New Jersey car insurance.

While having car insurance in New Jersey is mandatory, there are options available that make it affordable for everyone to have the necessary coverage.  Because of the Automobile Insurance Cost Reduction Act, a Basic Policy is an option that any driver may purchase.

As a resident, if you do not have New Jersey car insurance you may face a suspension of your license, registration, or time in jail. If you are unable to provide proof of your car insurance and you are behind the wheel of your car you may find that your car will be impounded.

You have the choice of a standard policy or the basic policy. The differences between them are as follows: bodily injury – standard runs from $15,000 per person to $250,000 per person and from $30,000 for each accident to $500,000; this coverage is optional on the basic policy. Property damage on the standard policy goes from $5,000 for each accident up to $100,000 and higher; on the basic policy it is $5,000 for each accident.

Personal injury coverage on the standard policy runs from $15,000 for each person or for each accident up to $250,000; on the basic policy it runs $15,000 for each person for each accident. The standard policy has uninsured motorist coverage as well as underinsured coverage that matches the amounts of your liability insurance; the basic policy does not offer this coverage.

Collision insurance pays for any damages that your car incurs as a result of an accident. This coverage is optional for both policies. Comprehension is coverage that pays for damages to your car that are not a result of an accident, so if it were in a flood or a fire or it was broken into, it would be covered. This coverage for both New Jersey car insurance policies is optional.

With the basic policy you have the Limited Right to Sue option. You can purchase either the standard or basic policy through any auto insurance agent. If you want to increase the limits on the standard policy and add any optional coverage your auto insurance agent will guide you through.

Categories: Car Insurance

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