New Jersey Laws
All states have certain requirements and regulations about auto insurance for drivers who live within their borders. New Jersey auto insurance regulations are such that drivers have a choice between two types of insurance policies- the basic policy and the standard policy. Drivers with few assets and family responsibilities may want a basic policy, which has lower coverage amounts. A standard policy, in contrast, has a minimum liability coverage requirement of $15,000 per person injured, up to $30,000 total and $5,000 in property damage. Personal injury protection also requires as part of a standard policy.
A basic auto insurance policy in New Jersey can include optional bodily injury liability coverage of up to $10,000 with $5,000 of property damage liability. A basic policy also includes at least $15,000 of personal injury protection. With a standard policy, a policyholder can also choose to purchase protection for uninsured and underinsured motorists, collision protection, and comprehensive coverage.
Insurance Rates
New Jersey auto insurance rates are generally determined by a number of factors. One of the largest factors, however, is the behavior of the state’s drivers as a whole. Auto insurance companies in New Jersey take the cost of insuring all of the state’s drivers, including settlements and legal fees, and divide it up among the drivers.
This does not mean, however, that a driver with a clean driving history will be paying the same amount as one who has had a number of accidents or that a younger driver who just got his or her license will cost as much to insure as a more experienced one. Instead, the percentage of the total state auto insurance costs that you pay as individual is determined by things like your personal driving record, your age, where you live, what kind of car you drive, and several other personal factors. Of course, not all insurance companies determine rates with the same methods, so any given driver could be charged a variety of rates by different insurance providers.
What this means for consumers purchasing New Jersey auto insurance is that as with any other important expense, it is best to shop around and compare rates and policies to make sure you get the best deal.
Getting Quotes
New Jersey only very recently made it easy for consumers to research auto insurance and get quotes online the way that residents of many other states do. Recent law changes that are meant to help guard against insurance fraud have enticed many insurance providers back into New Jersey, and many have begun to sell insurance directly via the Internet in the state. If you are looking for a quote, you can start by visiting the Web sites of multiple insurance providers and using the online forms. You may also want to visit a site like NetQuote.com, which will ask for some information from you about your personal needs and will then connect you with quotes from several different insurers so that you can compare them.
If you are looking for more information about New Jersey auto insurance, the best resource for you would be the New Jersey Department of Banking and Insurance, which can be contact in person, by phone, or via the Internet as well.
By Kristin Cleveland