If you live in New Jersey you know it is home to a lot of great things like the best diners, boardwalks and tomatoes, but for all of the highlights of the Garden State, there are also some drawbacks, particularly the high premiums and strict penalties drivers face when it comes to car insurance. NJ drivers are required to carry various forms of insurance coverage and can face hefty fines and consequences if they fail to adhere to the New Jersey car insurance laws.
Penalties for Driving Without New Jersey Car Insurance
A first time offender can face fines of $300 to $1,000 as well as community service requirements, DMV surcharges and even up to a one-year license suspension.
A second-time offender may face up to $5,000 in fines as well as a 14-day jail sentence, a two-year license suspension and 30 days of community service.
Before you get on the road without the right coverage, be sure to know the NJ car insurance requirements that are mandatory throughout the state and avoid these harsh penalties.
Options for New Jersey Car Insurance
New Jersey drivers have the ability to choose from a variety of options when it comes to car insurance. Some options include:
Standard Policies vs. Basic Policies.
Standard policies are the most popular among New Jersey drivers. They offer a variety of coverage options and the ability to add-on additional coverage. On the contrary, basic policies meet the state-required minimums and can be cheaper; however, they provide limited benefits.
Full Tort vs. Limited Tort.
When it comes to car insurance, tort refers to your rights to sue another driver who caused an accident in which you sustained injuries. If you carry full tort you are able to sue an at-fault driver for a number of things ranging from medical bills to pain and suffering. Limited tort can be more affordable; however, it limits your ability to sue.
New Jersey is a No-Fault Insurance State
Throughout the country, states are divided into at-fault and no-fault insurance states. New Jersey is a no-fault state, which means your insurance provider is required to pay for your medical injuries resulting from an accident regardless of who caused the accident.
Therefore New Jersey drivers are required to carry no-fault insurance, which is also known as personal injury protection or PIP. Drivers must have the minimum PIP coverage limits of $15,000.
Mandatory Standard NJ Auto Insurance Requirements
In addition to PIP, New Jersey drivers and car-owners with a standard policy are also required to have the following coverages:
Bodily injury liability coverage. This coverage will help to pay for the injuries inflicted on another driver and their passengers from an accident you cause. The minimum coverage you must carry is $15,000 per person and $30,000 per accident.
Property damage liability coverage. This coverage will pay for damage you cause to another person’s vehicle or property. You must carry at least $5,000 in the state of New Jersey.
Uninsured/underinsured motorist coverage. This coverage will protect you if you are involved in an accident with an uninsured or underinsured driver. You are required to maintain the minimum limits of $5,000.