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.
The Minimum Is Not Enough
Understand why to buy more. The amount of coverage you buy should match the financial risk you face if you’re responsible for an accident that’s not covered by insurance. If you cause a serious accident injuring several people and the medical expenses exceed your policy limits, you'll be personally responsible for the excess amount.
Always buy UM/UIM coverage. While only 8% of New Jersey drivers are uninsured, why take a chance? We recommend you buy matching limits for Bodily Injury and Uninsured & Underinsured Motorist coverage, to protect yourself and your passengers.