Driving in New Jersey comes with its own set of legal requirements and risks. Here are the main reasons why New Jersey drivers need comprehensive, reliable coverage in place: 

• High Traffic Volume: With dense populations and busy highways like the New Jersey Turnpike and the Garden State Parkway, congestion increases the likelihood of accidents. 
• Urban Driving Risks: Cities like Newark and Jersey City often see higher rates of car theft, vandalism, and fender benders. 
• Seasonal Weather Conditions: From icy roads in the winter to heavy rainstorms in the spring and summer, New Jersey's weather can create hazardous driving conditions. 
• Uninsured Drivers: Drivers without insurance or with insufficient coverage are a concern everywhere, including New Jersey, and coverage is required for policies. 

New Jersey is a “no-fault” state, meaning that your own insurance covers your medical expenses after an accident, regardless of who caused it. When it comes to auto insurance, the minimum required coverage will vary from state to state. For New Jersey, that minimum coverage includes: 

• Bodily Injury Liability: Coverage for others’ medical costs when you’re at fault. Minimum limits are $25,000 per person and $50,000 per accident. 
• Property Damage Liability: Coverage for others’ vehicles or property when you’re at fault. Minimum requirement of $25,000. 
• Uninsured/Underinsured Motorist (UM/UIM) Coverage: Covers vehicle damage or bodily injury if you’re involved in an accident with someone who doesn’t have insurance or not enough. Coverage limits for bodily injury reflect standard bodily injury liability limits. However, property damage has a minimum limit of $5,000 per accident. 
• Personal Injury Protection (PIP): Covers medical expenses and lost wages for you and your passengers. New Jersey drivers have a selection range of $15,000 to $250,000 for their PIP coverage. Split into two parts: 
  • Medical Expense: Coverage for the cost of treatment or medical equipment needed to treat your injuries. 
  • Non-Medical Expense: Coverage for income continuation, essential services, death benefits and funeral expenses. New Jersey drivers have the option to buy both or just medical expenses depending on needs. 
  • Additionally, New Jersey drivers have the option to make their health insurance the primary payor for medical expenses as the result of an accident, with your auto insurance providing secondary coverage. 
• Lawsuit Option: New Jersey drivers have two lawsuit options that they need to choose from in Standard Policies:  
  • No Limitations on Lawsuits Option: You retain the right to sue the person who caused an auto accident for pain and suffering from any injury in addition to economic damages. 
  • Limitations on Lawsuits Option: You can sue for economic damages, however, you agree not to sue the person who caused an accident for your pain and suffering unless you sustain a permanent injury, such as: 
    • Loss of body parts 
    • Disfigurement or scarring 
    • Loss of a fetus 
    • Death 

Additionally, New Jersey drivers need to select between a Basic Policy and a Standard Policy, which differ in coverage limits and optional add-ons. The options above cover the Standard Policy. 

While a no-fault state, accidents still need to determine an at-fault driver for vehicle damage. If you’re the at-fault driver, this policy covers damage to the other party. To protect your vehicle, additional coverage is necessary.  

Given the challenges of driving in New Jersey, adding optional coverages can ensure you are protected. At Goosehead Insurance, we can help you explore these additional options: 

• Collision Coverage: Helps pay for damages to your vehicle caused by a covered accident based on your deductible. 
• Comprehensive Coverage: Helps pay for non-collision damages to your vehicle caused by a covered accident based on your deductible. 
• Roadside Assistance: Helps pay for the cost of towing your vehicle if it cannot be driven due to an accident or breakdown. 
• Rental Car Reimbursement: Helps pay for the cost of a rental car while your vehicle is being repaired after a covered accident. 
• Increase Liability Limits: Some drivers see the benefit of increasing their liability limits to avoid costly out-of-pocket expenses if they’re found to be at fault. 

Every driver has unique needs, so whether you don’t drive very often or own a luxury vehicle in the city, Goosehead Insurance specializes in crafting the right coverage for your specific situation.  

In addition to coverage selections, auto insurance costs in New Jersey vary based on several factors, including: 

• Driving Record: A clean driving record will often lead to lower premiums, while a history of accidents or violations can increase rates. 
• Location: Urban areas such as Newark or Paterson tend to have higher premiums due to traffic density and crime rates. 
• Commute to New York: Carriers in New Jersey need to know if you frequently visit and drive in New York. This is because if you live in New Jersey, you must have a policy for New Jersey. 
• Type of Vehicle: Insuring high-value or specialty vehicles can carry higher premiums due to repair or replacement costs. 
• Age: Younger drivers, especially those under 25, often face higher insurance rates. 

On average, New Jersey drivers might pay an average of $1,300 annually for minimum coverage; policies with more coverage can cost an average of $3,000 a year.  

Looking to lower your insurance premiums? Here are some practical tips for New Jersey drivers to save on car insurance: 

• Bundle Policies: Combine your auto insurance with homeowners or renters insurance for multi-policy discounts. 
• Maintain a Clean Driving Record: Avoid accidents and moving violations to enjoy lower premiums over time. 
• Install Safety Features: Equipping your car with advanced safety technology can qualify you for discounts. 
• Take a Defensive Driving Course: Many insurers in New Jersey offer discounted rates for drivers who complete approved defensive driving classes. 

Goosehead Insurance is your trusted partner for securing the best auto insurance New Jersey has to offer. Here’s why New Jersey drivers rely on us: 

• Unbiased Comparisons: We work with multiple carriers to find the ideal policy for you. 
• Expert Agents: Our team simplifies the insurance process, ensuring all your questions are answered. 
• Custom Solutions: We prioritize matching customers with a tailored policy that fits their exact needs and preferences. 
• Convenience and Support: From initial quotes to ongoing policy management, Goosehead Insurance is here to make your experience smooth and hassle-free.