What kind of auto insurance should you get?

Is car insurance required in New Jersey?

It could be said that insurance is something where you “can’t live with it, can’t live without it.” It can be a hassle and a bag of confusion at times, but it is something that is necessary in case you find yourself in some kind of predicament. Auto insurance in particular is vital, and in many states, it is not optional. Is car insurance required in New Jersey? Yes, it is. Read ahead for more details. 

Is it okay to drive with the fuel light on?

Should you choose a Basic Policy or a Standard Policy?

New Jersey requires at least a basic level of automobile insurance. In fact, the Automobile Insurance Cost Reduction Act made sure that a Basic Policy was available for all drivers in order to help people navigate the sometimes tricky waters of car insurance shopping. 

So, what is a Basic Policy? This is something that people should really only consider if they do not have many real assets or family responsibilities. It is a lower cost than a Standard Policy, but that also means the coverage won’t be as thorough. For example, when it comes to bodily injury liability, a Standard Policy starts as low as $15,000 per person, $30,000 per accident, and goes as high as $250,000 per person, $500,000 per accident. That coverage is not included in a Basic Policy, but rather, $10,000 for all persons per accident can be purchased as an option. 

Other types of coverage that are important to consider when it’s time to choose insurance policies include property damage liability, personal injury protection (PIP), uninsured/underinsured motorist coverage, collision, and comprehensive. Basic Policies are limited in these coverages, and there is no uninsured/underinsured motorist coverage. 

Ultimately, a Basic Policy is a bare-bones policy that is the least amount of insurance you need to have when driving in New Jersey. If you want more coverage when you finance a new-to-you vehicle, you’ll want to go with a Standard Policy. Take a look at the State of New Jersey Department of Banking & Insurance page for more details if you want to go for a deep dive on this topic. 

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