New Jersey Car Insurance

The Garden State isn’t all roses when it comes to cars, insurance, and safe driving. New Jersey’s insurance premiums are higher than most states and well above the national average, and a combination of urban, suburban, rural, and mountainous roads present a variety of hazardous terrain on which to see one’s premiums go up.

But all is not lost for New Jersey drivers, since The Simple Dollar has put together a useful resource for readers to better understand car insurance and road safety in one easy place. Below you’ll find a wealth of information, laws, and resources about driving and car insurance in New Jersey.

 

 

 

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Stats in Your State

Before you focus on the costs of auto insurance, it’s good to understand the factors affecting it, and how those factors and rates have changed over time. To make things simple, we’ve compiled different sets of data to illustrate premium cost, traffic fatalities, and the car repair costs in New Jersey.

Auto Insurance Premiums

New Jersey car insurance premiums have risen and fallen right along with the national average, however they’ve stayed roughly $250-$300 above the national average throughout the early 2000’s. New Jersey’s varied weather, storm season, and heavy traffic all combine to make it a notably costly state in which to drive.

Traffic Fatalities over time

The first half of the last decade saw significant spikes in traffic fatalities, with highs of 771 in both 2002 and 2006. Fortunately, stricter safety standards for car manufacturers along with safe driving laws and cell-phone bans have lowered those numbers. Still, New Jersey’s traffic fatalities spiked again in 2011 to 627.

Auto Repair Costs

Despite the high cost of insurance, New Jersey drivers have enjoyed relatively competitive car repair costs in 2010 and 2011. These numbers indicate the average car repair cost in New Jersey, which is affected by people who choose not to fix their cars. With better economic climates, these numbers typically rise as people spend the money to fix their cars more frequently.

Rules in Your State

Before getting behind the wheel and speeding off, it’s best to have an understanding and appreciation for the rules of the road. Below we’ve outlined the basics of car insurance, teen drivers, and drunk driving penalties in the list below to check the major points of concern for drivers in the state.

New Jersey Minimum Car Insurance Requirements

Liability insurance coverage with the following minimum required limits:

  • Bodily Injury Liability is not required, as New Jersey is a no-fault state
  • $5,000 of injury to or destruction of property of others in one accident
  • Personal injury protection
  • 15,000 of bodily injuries per person to you or others on your policy in one accident
  • Uninsured motorist coverage
  • Coverage no greater than those amounts selected for liability coverage

New Jersey Required Proof of Insurance

  • Insurance company name, code, and address
  • Name and address of insured driver
  • Insurance policy number
  • Effective date/expiration date of policy
  • Accurate description of year, make/model of registered vehicle
  • Heading that reads: State of New Jersey Insurance Identification Card

New Jersey Licensing Facts for Teen Drivers: Understanding the Graduated License

The New Jersey rules for teen drivers:

  • Hardship License for Minors? No.
  • Learner’s Permit Age: 16 years. Drivers must be 17 years of age and have held permit for at least six months before applying for a restricted license.
  • Restricted License Age: 17 years. New drivers may not drive between 11:01 pm and 5:00 am. Additionally, drivers may only have one passenger in the car other than immediate family members, parents, guardians, or dependents.
  • Full License (Unrestricted) Age: 18 years.

More Rules

Insurance Division: Legislative and Regulatory Affairs

The above link directs to the Insurance Division’s links to the New Jersey Administrative Code and other laws. Using that source you can navigate to the state’s statutes and regulations. Some notable statutes applying to insurance and consumers are listed below:

New Jersey Permanent Statutes

Here you’ll find a list of New Jersey’s statutes. For insurance, see Title 17, which has dozens of subsections addressing most every part of the business.

DUI/DWI Laws:

Driving drunk is a dangerous and illegal act; here's the stark reality of life after a DUI in New Jersey:

Administrative license suspension 1st offense? 3 months
Restore driving privileges during suspension? No
Are ignition interlocks mandatory for first offenders for the following offenses? Offenders with a BAC higher than .15
Are ignition interlocks mandatory for repeat offenders for the following offenses? yes
Fine for first offense? $250 to $400
Jail sentence for first offense? Up to 30 days

Representatives & Resources in Your State

Whether you’re looking for traffic updates, insurance advice, or need advocacy on a particular issue, The Simple Dollar has got the basics covered for you. Use the links and resources below to get started on researching and understanding the issues that affect New Jersey drivers across the state.

New Jersey Department of Banking & Insurance: Insurance Division
NJ Department of Banking and Insurance
20 West State Street
Trenton, NJ 08625
Get Directions
609-292-7272
Contact Information
Consumer Protection Services
Consumer Car Insurance Information
Here you’ll find pamphlets and guides that address frequently asked questions and general concerns relating to car insurance.
Property and Casualty Insurance Information
The property and casualty section of the Insurance Division’s website applies both to auto and to homeowners claims, as both generally involve these types of claims.

State of New Jersey Motor Vehicle Commission
Motor Vehicle Commission
Customer Advocacy Office
P.O. Box 403
Trenton, NJ 08666-0403
(609) 292-5120
Contact Information

New Jersey Department of Transportation
Department of Transportation
P.O. Box 600
Trenton, NJ 08625-0600