New Jersey Car Insurance Requirements (2024)

Are you a New Jersey resident looking to navigate the complex world of car insurance? In this comprehensive and in-depth guide, we will explore the New Jersey Car Insurance Requirements and delve into various related topics to equip you with the knowledge and tools necessary to navigate the complex world of car insurance.

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Read more: What states require car insurance?

Required Coverage

All personal vehicles in New Jersey require the following liability coverage requirements:

• Property Damage

Additionally, New Jersey requires the following coverage:

• Personal Injury Protection

While the bare minimum requirements in the state are covered by a basic policy, it was created specifically with those that do not have many family responsibilities or many real assets. It’s often noted as a good policy for younger drivers who are just getting started driving and need insurance coverage.

It should be noted that under the basic policy, you automatically only have a limited right to sue for additional pain and suffering damages, but if you select at least a standard policy, you will have the option to select either an unlimited right or limited right to sue. The limited right to sue lowers your insurance premiums but also limits you from suing the at fault party for pain and suffering except if you have had one of the below injuries.

• loss of body part
• significant disfigurement or significant scarring
• a displaced fracture
• loss of a fetus
• permanent injury (Any injury shall be considered permanent when the body part or organ, or both, has not healed to function normally and will not heal to function normally with further medical
  treatment based on objective medical proof.)
• death

Additional insurance coverage can include:

• Comprehensive and Collision Coverage

Comprehensive and collision coverage is a good optional insurance coverage to add to your policy to help cover the costs of damages to or replacement of your vehicle if it’s been involved in an accident. Comprehensive coverage is helpful in covering losses from such incidents as a fire or the theft of your vehicle. Check the list of most stolen vehicles in New Jersey. Having this coverage is even more important if your vehicle is listed.

Proof of Insurance and Financial Responsibility

Establishing proof of insurance and financial responsibility

• Get a basic liability car insurance policy
• Get a standard liability car insurance policy
• Self insurance is an available option to those individuals or companies owning more that 25 vehicles

Required Documentation

In order to provide proof of insurance, you can provide one of the following:

• Insurance ID card provided by your insurance company
• Certificate of self insurance

You must maintain proof of insurance and financial responsibility and present it:

• When asked by a police officer
• Before a car inspection
• When involved in an accident

Failure to Maintain Financial Responsibility Penalties

If you are unable to show proof of insurance when asked by a police officer, you can face one of the following penalties:

• Fines of at least $300
• Community service
• Time in jail
• License suspension
• Insurance surcharge

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