NJ Car Insurance

New Jersey car insurance is required by the state. If you drive without auto insurance, you are breaking the law in New Jersey, which can lead to high fines, jail time, and an impounded car.

The type and cost of NJ car insurance coverage varies greatly. New Jersey has passed a state statute that requires car insurance companies to give you a mandatory discount up to 10% for 3 years if you complete an approved defensive driving course.

Register for NJ Defensive Driving

New Jersey Car Insurance Requirements

The New Jersey Automobile Insurance Cost Reduction Act states a basic policy must be available to all drivers. If you want additional car insurance coverage over the Basic Policy you have options like the NJ Standard Policy.

  1. The NJ Basic Policy car insurance coverage includes: Personal Injury Protection (PIP) and Property Damage Liability (PDL.)
  2. The NJ Standard Policy car insurance coverage includes: Personal Injury Protection (PIP), Property Damage Liability (PDL), Bodily Injury Liability (BIL), Uninsured/ Underinsured Motorist Coverage, and optional plans for Collision and Comprehensive coverage.

NJ Auto Insurance Rates

When you get quotes for New Jersey car insurance premiums, it’s important to know which options you want so you compare auto insurance rates equally.

The NJ Basic Policy includes Personal Injury Protection (PIP) and Personal Injury Protection (PIP) as explained below:

Personal Injury Protection (PIP) car insurance in New Jersey is your medical coverage for injuries of you and others that are suffered in a car accident. Sometimes referred to as no fault coverage because it pays your own medical expenses no matter who caused the car accident.

PIP has 2 components: 1) Coverage for the cost of treatment you receive from hospitals and medical providers including medical equipment used to treat injuries; and, 2) Reimbursement for expenses you may have incurred because you are hurt including lost wages, hiring someone to care of your home or family. The medical treatment coverage is required, the second coverage for reimbursement of expenses is optional.

  • New Jersey Basic PIP policy coverage is $15,000 per person per accident and up to $250,000 for permanent or significant injury as defined in the policy.
  • New Jersey Standard PIP policy offers you higher financial coverage with $250,000 per person per accident or a lower amount can be selected.

Bodily Injury Liability (BIL) auto insurance is coverage for claims and lawsuits by people injured or die as a result of an accident you have caused. It pays for pain, suffering, and economic damages such as lost wages.

The BIL coverage is typically given as two separate amounts: 1) An amount paid per individual; and, 2) An amount paid for total injuries to all people injured in any one accident that you have caused.

  • BIL Basic Policy coverage is not included but $10,000 coverage for all persons per accident is available as an option.
  • BIL Standard Policy covers $15,000 per person per accident and $30,000 for all persons per accident is provided. NJ auto insurance companies offer higher limits.

NJ Car Insurance Options

You can always increase your financial coverage with Personal Injury Protection, Property Damage Liability, and Bodily Injury Liability. In addition to these policies, there are 3 more car insurance plans to consider:

  1. Uninsured and Underinsured motorist coverage pays for property damage or bodily injury if you are in an accident caused by an uninsured motorist or a driver who is insured, but who has less coverage than your underinsured motorist.
  2. Collision car insurance offers coverage for damage to your vehicle as the result of a collision with another car or other object.
  3. Comprehensive auto insurance is for damage to your vehicle that is not a result of a collision like car theft, vandalism, flooding, fire, or a broken windshield. Comprehensive coverage also pays if you collide with an animal.

NJ Defensive Driving

The New Jersey MVC approved a defensive driving course to educate and improve NJ drivers errors. The course has proven to reduce the number of car accidents a New Jersey driver has through defensive driving techniques that helps one avoid an accident.


The New Jersey MVC (Motor Vehicle Commission) is responsible for vehicle registration and inspections, drivers license, vehicle and driving violations, traffic tickets, and safety programs for drivers and vehicles.

NJ Traffic Ticket

If you break a traffic law in New Jersey your driving record can be affected in several ways. The 2 most common traffic tickets are moving violations and non-moving violations.

New Jersey License Suspension

If you drive with a suspended NJ drivers license you could serve up to 5 years in jail. A drivers license can be suspended in New Jersey for several reasons.