New Jersey is a popular place. In fact, it has more people per square mile than any other state. It also has more horses per square mile than other states, but that’s beside the point.
The point is, the Garden State is dense, and that usually translates to higher car insurance rates. More people in a smaller area means a higher risk of accidents.
But calling New Jersey home doesn’t mean you’re stuck shelling out thousands for car insurance against your will. Keep reading, because we have everything you need to know about finding affordable auto insurance in New Jersey without skimping on coverage.
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If you’ve never thought about what you’re covered for in terms of car insurance, you’re not alone. But understanding your coverage (and your options) is important. And it’s better to do so ahead of time, before anything happens.
Here are the typical car insurance options in New Jersey that you can choose from:
Next, we’ll show you what you do need to have in place to meet New Jersey state requirements, but above that you can mix and match coverage types and amounts. This way, you’ll build yourself a comprehensive policy that meets your budget and gives you peace of mind.
If you want to spice up your policy even more, consider these optional add-ons:
These are just some endorsements you can add to your policy, but they vary by insurer. Remember: it’s your car insurance policy and it should give you peace of mind, so feel free to customize it to your liking.
Here’s the thing: the cheapest auto insurance you’ll find is for minimum coverage. This means that you have just enough auto insurance to satisfy the state’s legal requirement and not much else.
This will help you cut your car insurance costs, but it won’t give you much in the way of protection. It’s a bit of a gamble: pay less in premiums now, but pay more out of pocket should anything happen.
If you’re the “walk on the wild side” type, let’s review the minimum coverage requirements in New Jersey. But buckle up: New Jersey is a little different from other states, because instead of a simple minimum requirement, you can choose between two policy types:
That was a lot of information, we know. But it’s important stuff. After all, it’s your finances at stake here. Now, bear with us, because there’s a little more to cover.
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Here’s the kicker: you can choose a Standard policy, but then lower your premiums by voluntarily limiting your right to sue after an accident. It’s important that you explicitly make the choice when choosing your policy, or else your insurer will default you to a limited right to sue.
Let’s break down the difference:
So, to recap: you can opt for a Basic policy and have a limited right to sue after an accident. Or, you can opt for a Standard policy and choose a limited right to sue or an unlimited right to sue. If you don’t explicitly choose, you’ll be given a limited right to sue by default.
Limiting your right to sue drastically cuts your premiums. By selecting the unlimited right to sue, your rates shoot up, and can even double in some cases.
There’s no getting around it: cost matters. Especially when it comes to something like insurance, which no one enjoys spending money on.
So, what’s the damage? Ringing in at slightly less than the national average, you can expect to pay the following average rates in New Jersey:
There are many factors that affect your actual rate, which we’ll explore next. But to give you an idea, here are the average rates for full coverage in major cities in the Garden State:
If the average rates have you sweating, don’t worry. Later, we’ll cover ways to save on car insurance so that your bank account stays healthy even after your insurance premium gets paid.
In the meantime, go ahead and get access to free quotes here to get a better idea of what you can expect to pay.
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New Jersey loves to set itself apart. The state uses a process called auto insurance scoring to calculate your premiums. It combines information found in your credit report with typical insurance factors like your age, gender, vehicle, zip code, past insurance claims and accidents, and more.
This score essentially helps the insurer understand how likely you are to get into an accident, and what their risk is in insuring you. The good news is that insurers have to share the scoring model with you and with the New Jersey Department of Banking and Insurance. This is to help protect consumers.
No gatekeeping here! We’re sharing our top tips for car insurance savings, because everyone deserves great coverage at affordable rates.
Here are the best ways to save on New Jersey auto insurance:
Car insurance in New Jersey might cost less than the national average, but that’s no reason not to try to save money on your car insurance. These tips, although straightforward, can add up to as much as 30% savings on your auto insurance, and that’s nothing to sneeze at.
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If the Jersey shore is calling, it’s time to cut to the chase: your next step is getting car insurance quotes so that you can find the best policy for your needs. Start by collecting multiple quotes and comparing the insurers for cost, coverage, customer reviews, and more.
We’ll do you one better: click here for access to free quotes fast, because you have better things to do than look for car insurance all day. We’ve got you covered.
Claire Smith Claire is a creative entrepreneur with a variety of marketing and content creation skills, including blog and web copy writing, research, and strategy. She has a Masters in Cultural Studies from Queen's University and is known for thinking laterally about marketing, based on her deep knowledge of people and behavior.
