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CarInsuranceCalculator.info's New Jersey Guide

All auto insurance quotes for New Jersey should provide you at least with the following insurance coverage or financial responsibility

15/30/5 – This is shorthand for the liability policy limits required which means you need a minimum coverage of:

  • $15,000 for death or injury to one person;
  • $30,000 for death or injury to two or more people; and
  • $5,000 for property damage to others

All drivers must also obtain Personal Injury Protection (PIP) coverage of a minimum of $15,000 for medical expenses for you and your passengers in an accident (see Overview section for more information on PIP).

In addition, you must also obtain uninsured/underinsured coverage in the same amounts as your liability coverage.

Nearly all car insurance policies have a provision that will adjust your coverage from the minimums required in your state to the minimum insurance or proof of financial responsibility in another U.S. state. So you do not need to get a new insurance policy for each state you are driving through. However, if you buy a policy in a low limits state (like New Jersey or Nebraska) but live in a high limits state (like Alaska), insurers will only write a policy where your car is principally garaged. So if your home is in Alaska, you should buy the minimum limits for Alaska.

As for all other states, including the higher limit states,  New Jersey’s required insurance limits are low, when compared the real cost in repairs and damages which are likely to occur in an accident. If you are in a serious collision and the damages you caused are greater than the coverage limits you purchased, you may be personally liable to pay for those damages that exceed your insurance coverage. Even double the amount of coverage is relatively cheap and provides much more financial security.

Car Insurance in New Jersey – Laws and Regulations

New Jersey is a “Choice No Fault” state. You may refuse the “no fault” opting to not purchase PIP insurance. You must opt out by declining the “no fault” option in writing. Otherwise, you are presumed to have chosen the “no fault” option and are limited to the coverages you obtained for your own policy, unless you sustained a serious permanent injury. If you decline the no fault option, you can maintain the right to sue for your damages under general liability/tort system for injuries or deaths as a result of an auto accident. If you opt out of the “no fault” system, New Jersey is a modified comparative fault state with a 51% rule. This is a legal defense that means that a plaintiff can recover for an injury, reducing the amount that the plaintiff can recover based on the percentage of which the plaintiff is at fault if it is determined that his or her fault in causing the injury is less than 51%. If the plaintiff’s fault level reaches 51% or more, he or she cannot recover any damages resulting from the accident.

Driving Under the Influence (DUI)

In New Jersey, a first time offense of Driving Under the Influence (DUI) is a misdemeanor (lesser) offense. If you are 21 years or older, if you have a Blood Alcohol Content (BAC) level of 0.8% or higher while driving, New Jersey law presumes you are driving while intoxicated. If you are under 21, a lower BAC may apply to you.

1st DUI

If convicted, you may be sentenced up to 30 days in jail. A court fine of $300-500 may be imposed, with other penalties of $75-$100 each and a surcharge of $1000 per year for three years. You will also be responsible for your cost of incarceration. Your license will be suspended or restricted for 6 months or up to 1 year. You will be required to install an ignition interlock device. You will also be required to take attend and pay for an Intoxicated Driver Program (IDP). SR-22 or FR-44 forms will be required for a 1st DUI.

2nd DUI

If convicted, you may be sentenced up to 90 days in jail, depending whether other enhancement factors are present. Fines may be imposed from $500 up to $1000, with other penalties of $75-$100 each and a surcharge of $1000 per year for three years. You will also be responsible for your cost of incarceration. Your license may be suspended for 1 year. If you are eligible for a restricted driver’s license, you may be required to install an ignition interlock device for up to 2 years after obtaining a restricted license. You will also be required to take attend and pay for an Intoxicated Driver Program (IDP). SR-22 or FR-44 forms will be required for a 2nd DUI.

New Jersey Vehicle Insurance Resources

Source:

NAIC 2009 Market Share InformationNote: List does not contain duplicates of associated or affiliated insurance companies

Further Information

Top Ten Car Insurance Companies in New Jersey

These are the top ten insurance companies or insurance groups by market share in the state:

  1. State Farm
  2. Allstate
  3. Geico
  4. Progressive
  5. Liberty Mutual
  6. Travelers
  7. Mercury Insurance Group
  8. American Automobile Association
  9. Met Life
  10. GMAC Insurance