New Jersey may be small but it is not insignificant when it comes to auto insurance. This little state is bordering New York City where many motorists from New Jersey travel back and forth for work or social activities. New Jersey has compelling attractions for tourists such as the beautiful seaside town of Cap May, and the famous Atlantic City casino and boardwalk. Vacationers may also enjoy traveling the coastal plains, and the panoramic view of pine forests and salty marshes. Either way New Jersey auto insurance is a must for its residents as the congestion piles up.
New Jersey Auto Insurance Requirements
Due to the congestion and the fact that New Jersey is a no fault state, New Jersey motorists are among the most insured motorists within the USA. The state brought in No Fault insurance to clear the courts of its many car accident lawsuits and to keep the auto insurance rates low. With no fault protection, New Jersey auto insurance companies would pick up the amount that that their insured caused for the damage they had caused. Therefore, because of no fault insurance, each motorist must carry Personal Injury Protection. PIP insurance also covers not only the driver’s medical expenses, but those of the passengers in the vehicle as well, and, it will cover loss of salary due to time off and death benefits.
No fault New Jersey auto insurance will pay up to a certain amount for medical and damage expenses incurred by the driver who was at fault, after that the driver is responsible to pay the rest. Therefore, New Jersey drivers must carry Bodily Injury Protection and Property Damage Liability for the damage they have caused to the other car. The State minimum requirements are 15/30/5.
- Bodily Injury Liability – Bodily Injury Liability coverage will cover up to $15,000 for any medical expenses sustained to one person in the other car should the insured be at fault.
- Bodily Injury Liability will pay up to $30,000 in case more than one person sustained medical injuries.
- Property Damage Liability – The at fault driver’s New Jersey auto insurance company will pay up to $5,000 for damage to the car sustained by the other driver and this amount includes private property such as homes or fences, and public property such as road and traffic signs.
It is highly likely that these State minimums will not cover major medical expenses and property damage; therefore New Jersey recommends that their insured carry higher amounts.
They also recommend that their motorists carry Comprehensive and Collision coverage to protect the at fault driver against damage caused by natural forces, or from wildlife. It also provides funds for the at fault driver who sustained damages to his or her own car.
Since many motorists on the road including tourists from other states do not carry any auto insurance, New Jersey requires its insured to carry Uninsured/Underinsured Motorist protection. Um insurance will provide funds in case the driver deemed at fault does not cover sufficient insurance or any insurance at all and it will also insure against a hit and run.
