NJ, known as the “Garden State” since it began appearing on their license plates in 1954, is one of the most densely populated province in the country and one of the wealthiest. Since you’ll see below when we take a peek at New Jersey auto insurance, it is a good thing that persons have a little extra money to burn.
NJ has one of the most complicated sets of auto insurance regulations that may be found in america. First, drivers are governed under a “Pick NoFault” system, which means that drivers can either choose to go with no fault insurance, or stick with the classic “tort” system that enables them to sue for accidents related to an accident. On top of this, the New Jersey government mandates that motorists have minimum coverage in many different areas, which we’ll look at under.
The very first compulsory coverage that New Jersey motorists must have is Bodily Injury Liability insurance. BIL coverage covers the costs associated with the other party’s bodily injuries once you cause an injury. The minimum coverage here is $15,000 per person in a single accident and $30,000 for all parties in a single accident. Next, drivers must buy a minimum of $ 5, 000 of Property Damage Liability insurance, that is the policy that covers you against automobile and other damage costs if you cause an accident. $5,000 is one of the lowest mandated minimums within the nation and with today’s repair costs it’s recommended that drivers exceed this if they could afford it.
Next, drivers must by law insure themselves against accidents caused by an insured motorist. Drivers must have coverage totaling $15,000 per person, per accident and $30,000 for all parties in any single accident at a minimum. Uninsured motorist PDL coverage is also needed, for damage to your car or other property.
$5,000. Finally, New Jersey motorists are required to cover themselves for injury no matter who causes the mishap. Personal Injury Protection or PIP coverage will shell out for your medical treatment, in addition to things like wages as a result of the injury. The minimum PIP coverage is $15,000 by regulation, yet the limit is $250,000 so drivers may also insure themselves for as much as they can reasonably manage.
Due to a broad variety of factors, NJ’s average auto insurance prices are in the high end when compared to the rest of the nation. Statewide, New Jersey drivers are taking a look at an annual average of about $2400 a year for car insurance, or about $200 per month; this is somewhat greater than the national average of $1440 per year. It surely pays off for New Jersey drivers to work with their auto insurance broker to maximize any available discounts they can and to finetune their coverage to ensure they simply have what they want.
The reason for high automobile insurance rates in New Jersey has a lot to do with the legal system for dealing with accidents, but is also impacted by the risk of getting into an accident in the very first place. Unlike the great bulk of the states, New Jersey’s auto crash rates haven’t been trending down over recent years, and with more accidents come higher auto insurance premiums. The previous three years saw totals of 303, 000, 301, 000 and 307, 000 auto crashes respectively – very little change in either way. With much of New Jersey covered in interstate highways and the massive quantities of traffic to the New Jersey Turnpike, there’s a more than average risk of being in an automobile accident in the event you live in the state.
Unlike New Jersey’s flat trends for auto crash rates, the rates for car theft are plummeting, bringing New Jersey into one of the lowest states in the nation for stolen vehicles. 2009 saw only 15,500 instances of vehicle theft, down from over 20,000 in 2008. In comparison to the start of the decade, 2009’s automobile theft rate was down by more than 60 percent, showing the significant push by law enforcement to stamp out vehicle theft has been very successful.
While New Jersey motorists really have to pay higher auto insurance rates than those in most other states, they do enjoy very low auto theft rates and average risk of being in a car accident. The best one can perform would be to search around and try to source out every reductions they could apply to their own premiums to drive them downward. Regardless of how it may look expensive, car insurance prices are low compared with the cost of being in an injury.