Car Insurance in New Jersey

What is Car Insurance?

Thousands of accidents happen every day, even though no one ever plans on being in one. Most New Jersey drivers will be in at least one collision during their lifetime. Since driving is such a frequent activity in most adult lives, it is very important to consider the potential financial losses that accidents can cause, along with several other potential risks.

Car insurance is a coverage intended to better protect drivers from many of the risks they assume by both owning and operating a motor vehicle. Depending on the coverages selected, a policy might cover everything from injuries sustained in an accident to CDs stolen out of a vehicle while it’s parked.

Who in New Jersey Needs Auto Insurance?

New Jersey requires all drivers who operate motor vehicles on public roads in the state to have auto insurance. Drivers must have a policy that at least meets the state’s minimum coverage requirements. Many drivers, however, choose to purchase more protection than the state’s minimum requirements provide.

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What Coverages Do Car Insurance Policies Provide?

Some of the coverages that can be purchased through auto policies include:

  • Personal Injury Protection, which may cover injuries that the policyholder and any passengers with them sustain during an accident
  • Bodily Injury Liability Coverage, which might cover injuries others sustain during an accident
  • Comprehensive and Collision Coverages, which usually cover the policyholder’s vehicle in an accident
  • Underinsured and Uninsured Motorist Coverage, which helps provide coverage if another driver is responsible for an accident but doesn’t have adequate insurance coverage.
  • Property Damage Liability Coverage, which covers damage that’s caused to others’ property during a covered accident

A few of these coverages usually come standard on auto policies, while others are available as optional coverages. Even those that come standard can often have their limits increased if a driver wants extra protection. 

Free Advice Lives HereIs Car Insurance Just for Insuring Cars?

While auto insurance is often referred to as car insurance, policies insure vehicles other than cars. Auto policies can often be used to insure cars, trucks, SUVs, and crossovers, as long as they’re used for personal use.

Do Auto Insurers Perform Credit Checks?

In New Jersey, auto insurers are allowed to use driver’s credit scores when calculating their premiums. Insurers often take advantage of this and check drivers’ credit scores when they request quotes. These checks are “soft pulls,” though, and they don’t usually impact a driver’s credit score like checks that lends conduct sometimes do.

Car Insurance New Jersey

Do Auto Policies Cover Rental Cars?

Many auto policies provide some coverage for rental cars, but the amount of coverage they offer varies. Additionally, a few policies don’t provide coverage. Drivers who will be renting a car should contact their agent to find out what coverage their policy will provide for the rental.

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How Can Drivers Save on an Auto Policy?

The car insurance industry is highly competitive, which works to drivers’ advantages. As insurers try to attract drivers with low rates, drivers can compare rates from several insurers to find the policy that provides the most affordable coverage. Drivers who want to quickly compare policies from several insurers can do so by contacting an independent insurance agent. There are independent agents throughout New Jersey who can get quotes from many different insurers that offers auto policies in the state. While comparing policies, an independent agent can also make sure coverages aren’t compromised so that the driver will be properly protected by the policy they get.

 

Meet Your Industry Specialist

Frank Costa

Frank Costa, CIC, CRM

Mr. Costa founded an independent insurance agency in 1989 and successfully grew the firm to merge with a Tri-State independent agency in 2001. He is a Certified Insurance Counselor (CIC) and a Certified Risk Manager (CRM) and frequent speaker on various risk management topics.

Along with a BA in Accounting, Frank has completed extensive post graduate work in organizational behavior and management.

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