auto insurance buyer's guide for new jersey

Understand New Jersey Insurance Basics

Liability insurance pays others for damages or injuries that you cause if you are responsible for an accident. It does not cover injuries to the driver or other people in your car. (BI/PD = bodily injury & property damage liability coverage)

Personal injury protection pays medical expenses if you or other persons covered under your policy are injured in an automobile accident. Also called "No Fault" coverage, PIP coverage pays your medical expenses whether or not you were not at fault.

Uninsured/Underinsured motorist coverage protects you if you are in an accident with an unisured or underinsured driver. (UM/UIM)

Keep Your Insurance Current

No insurance? No registration. Proof of insurance is required as part of the New Jersey vehicle inspection program. Inspections are required once every two years, except for new vehicles, which are given a four-year inspection.

Your NJ Insurance Identification Card is required for each vehicle inspection, as well as any time you're stopped for a traffic violation, an accident or an insurance spot check. Driving an uninsured vehicle may result in fines, community service, and a license suspension.