New Jersey Car Insurance Overview
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New Jersey drivers are seeing higher car insurance bills this year, with liability coverage costs increasing by an average of $145 annually. This change comes as the state now requires higher coverage limits for all drivers. While the goal is to provide better protection in case of accidents, it’s also putting more pressure on drivers’ wallets.
For years, auto insurance NJ had some of the lowest minimum car insurance requirements in the country. It was simple, affordable — but incomplete. When accidents happen, many drivers find themselves exposed, unprepared, and financially vulnerable.
With these new changes, the state aims to ensure drivers are better prepared financially. But what do these higher limits mean for you? Let’s break it down clearly, so you know how to adjust and stay protected without overspending.
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Car insurance laws in New Jersey
Understanding laws of the auto insurance NJ is essential for every driver. The state has specific requirements and systems in place to ensure that drivers are covered adequately while on the road.
Is New Jersey a no-fault state?
Yes, New Jersey has operated as a no-fault state since 1973. What does that mean?
In a no-fault system, your auto insurance NJ covers your own medical expenses and related costs after an accident, regardless of who caused it.
However, New Jersey’s no-fault system doesn’t eliminate the possibility of suing. If your injuries are severe or your medical expenses exceed a certain threshold, you can still take legal action against the at-fault driver.
Teen driving laws in New Jersey
New Jersey takes teen driver safety seriously with a Graduated Driver Licensing (GDL) program. This three-phase system is developed to help young drivers gain experience gradually, reducing the risk of accidents.
Here’s how it works:
- Learner’s Permit (age 16). Teens must complete supervised driving hours and pass a written test before moving to the next step.
- Probationary License (age 17). Drivers can now drive unsupervised but with restrictions, such as a curfew and passenger limits.
- Full Driver’s License (age 18). After meeting all requirements, teens can obtain an unrestricted license.
Parents should ensure their teens follow these laws to avoid penalties and promote safe driving habits.
New Jersey car insurance requirements
When it comes to auto insurance NJ, the state offers two minimum coverage options: the basic policy and the standard policy. While the basic policy meets the legal minimum, the standard policy is recommended for better financial protection.
Basic policy
This is the most affordable option and includes limited coverage:
- $5,000 for property damage liability;
- $15,000 per person for personal injury protection (PIP), with up to $250,000 for severe injuries.
Standard policy
This is the more comprehensive option, offering higher coverage limits:
- $15,000/$30,000 for bodily injury liability (per person/per accident);
- $5,000 for property damage liability;
- Personal Injury Protection (PIP) coverage starts at $15,000 and can be customized.
Selecting the right coverage depends on your needs, budget, and comfort level with risk.
What happens if you drive without auto insurance in NJ?
If you’re caught without car insurance in New Jersey, the consequences are serious. You could face up to 14 days in jail, lose your driver’s license for up to two years, and even have your car impounded. On top of that, you might be hit with fines ranging from $300 to $5,000, plus a $250 annual surcharge for three years — adding up to $750.
Why choose A&Y Royal Insurance
At A&Y Royal Insurance provides auto insurance NJ solutions that fit your needs. Our firm is available 24/7, ensuring you always have access to expert support.
Flexibility is at the core of what we offer. As your circumstances change, your coverage can change with you. Whether you’re looking to adjust your policy or explore new options, we make it simple to adapt.
When the unexpected happens, you can rely on our highly trained commercial loss adjusters. Their experience ensures that your claims are handled efficiently and with care.
Call us at any time at 718 375 9000 or fill out the feedback form on the website.
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