Car insurance laws in New Jersey are designed to protect both drivers and those they may affect in the event of an accident. The state offers two options for coverage: a basic policy and a standard policy. While a basic policy may be more affordable, it comes with lower limits and restrictions on coverage types. Most experts recommend opting for a standard policy with higher limits and more coverage types if you can afford it.
In 2023, New Jersey passed laws to increase the minimum limits for standard policies. Currently, the minimums stand at 25/50/25 for bodily injury liability and property damage liability, with $15,000 in personal injury protection and 25/50 in uninsured/underinsured motorist coverage. In 2026, the limits will increase to 35/70/25 with 35/70 in uninsured motorist coverage.
Driving without insurance in New Jersey can result in severe penalties, including fines, license suspension, jail time, and community service. The penalties vary depending on the number of offenses and whether an accident occurred. Additionally, drivers may be required to obtain an SR-22 certificate, which can lead to higher premiums and limited options for coverage.
Getting into an accident without insurance in New Jersey can have serious financial consequences. Without insurance, drivers are responsible for paying out of pocket for damages caused in an accident. The state’s „No Pay, No Play“ law further limits the ability of uninsured drivers to collect compensation for noneconomic damages and property damage.
When it comes to finding the best car insurance in New Jersey, it’s essential to shop around and compare providers. The cost of car insurance in the state varies based on several factors, such as age, driving record, and the type of coverage needed. No-fault insurance, also known as personal injury protection (PIP), is required in New Jersey and covers medical bills, lost wages, and pain and suffering costs regardless of fault.
Overall, car insurance is required in New Jersey to ensure financial protection for drivers and those they may affect in an accident. It’s crucial to maintain the minimum required coverage and to drive safely to avoid penalties and financial setbacks. By understanding the state’s car insurance laws and requirements, drivers can make informed decisions to protect themselves and others on the road.