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New Jersey Auto Insurance Law for the Insurance Providers and Its Policyholders

As a mandatory requirement, all drivers in the state of New Jersey must have valid auto insurance and must adhere to the stipulated laws. In addition to this mandatory law, one can opt for a standard coverage policy or a basic coverage policy also known as a no fault insurance cover. A no fault coverage policy basically entails coverage against personal injury notwithstanding who is at fault. On the down side, a no fault coverage policy is designed in a way that precludes your right to sue for damages or make any claims for physical damages  except in more grave injuries. On the other hand, with a standard coverage policy one still reserves the right to commence legal proceedings for the damages for any sort of injury sustained.

cheapcarinsuranceinNJNew Jersey state law is quite strict and clear as is the case in most of the states in the US. Failure to comply with these laws will lead to serious repercussions. It may include fines, monetary loss, driver’s license and car registration suspension or revocation, impounding of the involved vehicle or a possible jail term.

New Jersey auto insurance laws have made it clear that the basic policy is obligatory while the standard policy is not mandatory but recommended. With the basic policy, it is for individuals who have few financial assets or none and also have no family obligations. It is the lowest form of New Jersey auto insurance for people who are not financially advantaged. For the new and young drivers, this basic policy is highly recommended since they do not have a lot of responsibility in terms of family and also may not have many assets.

When it comes to protection against bodily injury, it is not mandatory but is available at $10,000 per accident per person. In this protection, lack of it means that your New Jersey auto insurance carrier will not be liable to pay and this may put your financial assets at risk in case a lawsuit is filed against you. On the other hand, property damage liability coverage is a mandatory requirement with the basic policy in the state of New Jersey. The law states that it should be at a minimum of $5,000 for every accident. The law also requires that every motorist in the state have personal injury protection or PIP and must be incorporated in both the standard and basic policy. The law has set the minimum limit for personal injury protection at $15,000 for the basic policy and can go as high as $250,000 for more serious injuries.

Get cheap car insurance in New Jersey from reliable auto insurance companies in the state. To do this just enter you zip code in the provided slot above and get free auto insurance quotes in the process. Try it now!