Every state across the country has their own requirements for the type of auto insurance their residents must carry. New Jersey is no exception to this rule, with their basic requirements for coverage that all New Jersey drivers must adhere to. This article will offer the basics of different New Jersey auto insurance coverages including what is required by state law.
Like most states, New Jersey requires drivers to carry a minimum amount of liability insurance. This coverage protects other drivers from injury and damage caused by your vehicle. Bodily injury liability involves injury or death to another person and covers medical expenses, lost wages and possible legal compensation. New Jersey requires a minimum amount of $15,000 bodily injury liability with a $30,000 limit. Property damage liability primarily protects cars damaged by your vehicle, but might also include other types of property like a fence or other structures. In New Jersey, drivers must carry at least $5000 in property damage liability.
Uninsured and Underinsured Motorist
If you are in an accident with a motorist that does not have current insurance, you may be liable for the cost of medical bills and vehicle repairs. This amount can become rather large, which is why New Jersey requires all drivers to carry a minimum amount of uninsured motorist personal bodily injury coverage. The minimum for this coverage is $15,000 with a limit of $30,000. Drivers must also purchase at least $5000 in uninsured motorist property damage insurance. Some states do not require such coverage, but the state of New Jersey feels it is essential that drivers protect themselves thoroughly when they are on the road.
Personal Injury Protection
Personal injury protection, also known as PIP, covers reasonable medical costs for you and your passengers injured in an accident. The minimum amount of this coverage required in New Jersey is $15,000. Policies also include a $250,000 PIP limit that covers permanent or severe injury that might run up a much higher medical bill. Not all states require this insurance coverage, and some drivers think that their coverage through their health and disability insurance should be sufficient. However, PIP covers passengers in your car as well, and makes sure you have more than enough coverage in the event of major medical expenses.
By understanding the basic requirements for New Jersey auto insurance, you can formulate a policy that will meet state law as well as your personal needs. Begin with the minimum requirements as dictated by the state, and then add to your coverage according to your needs and budget. This will ensure you take to the road with sufficient protection in the event of an accident.