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For you to have the legal rights to drive in the State of New Jersey, you need to first obtain an auto insurance policy. In other words, this type of insurance policy is a must-have when you live in this state and you own and operate a motor vehicle. Failure to secure the required New Jersey car insurance will only lead to you facing serious penalties and fines, so don’t leave yourself unprotected.

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Average cost of car insurance in New Jersey

The National Association of Insurance Commissioners (NAIC) claim that the average person pays roughly $1,254.10 for car insurance in New Jersey each year.

They broke this figure down to:

$882.10 is the average annual liability insurance expenditure.

$363.80 is the average annual collision insurance expenditure.

$122.37 is the average annual comprehensive insurance expenditure.

Young Drivers in New Jersey

Using our methodology1, we learned that young drivers in the Garden State can expect to pay a yearly premium average of:

  • $1222.8 for state minimum coverage2,
  • $1937.6 for basic full coverage3 and
  • $2476.8 for premium full coverage4.

Age greatly influences the high cost of auto insurance for this specific group of motorists. Statistically, their lack of experience makes them more prone to getting into accidents. They have the tendency to forget, even avoid the use of seatbelts, choose flashier and faster cars, and drive with a lot more occupants.

Female Drivers in New Jersey

In New Jersey, a female driver can have premiums lower than a young driver. Women can expect to pay the following yearly premium averages:

  • $2397.6 for state minimum coverage,
  • $4072.4 for basic full coverage and
  • $5434.4 for premium full coverage.

Our case study showed that Jersey City and Hackensack, with estimated populations of 264,290 and 44,834 (2015, latest data5) respectively, offers female drivers some of the cheapest premiums, at around $45 a month.

Senior Drivers in New Jersey

We found that senior drivers who do their best in maintaining a spotless record and drive safely can pay even less than women. This is despite the trend showing that premiums go up when one turns 65. In our study, we discovered that motorists within this category can have premium averages of:

  • $907.6 for state minimum coverage,
  • $1454.4 for basic full coverage and
  • $1872 for premium full coverage.

Older adults can further cut their car insurance costs by taking a defensive driving course. And as long as they avoid road traffic accidents, they can even qualify for other age-specific, money-saving deals.

Minimum car insurance requirements

New Jersey motor vehicle insurance laws require all car owners to have either one of these two policy types: the Basic Policy or the Standard Policy.

When you opt for the Basic Policy – the least expensive choice – it provides you with coverage, although limited, and protects you from insurance-related legal liabilities. Purchasing this kind of policy means you have a $5,000 property damage liability (PDL) coverage per accident, a $15,000 personal injury protection (PIP) coverage per person and accident, and up to a $250,000 coverage for very severe injuries (permanent brain injuries, for instance).

As for the Standard Policy, the pricier of the two, you will receive greater coverage. The minimums that come with this type of NJ car insurance include $15,000 for bodily injury liability (BDL) coverage per person and accident, $30,000 for total BDL (in the event the accident resulted in multiple people sustaining injuries), $5,000 for property damage liability per accident, $15,000 for personal injury protection per person, and up to $250,000 of PIP for permanent or severe injuries.

Like all other states in the country, auto insurance companies in New Jersey also offer a variety of other optional types of coverage. This means you have the choice to invest in a more extensive policy. You can add comprehensive coverage, collision coverage, towing and labor coverage, as well as rental car coverage.

Violations and penalties 

New Jersey has quite the scary penalties for those found in violation of the state’s car insurance laws.

For example, first time offenders would have to pay a fine ranging anywhere from $300 to $1,000. The authorities will also suspend their license for one year. Community service also makes up the list of penalties, the length of which the court will determine.

As for second time violators, the fine can go up to $5,000. They will also face a 14-day jail time, a 2-year license suspension, and a 30-day community service penalty.

Driving safety in New Jersey

According to the Centers for Disease Control and Prevention (CDC), New Jersey goes above the 86% national average of motorists and front-seat passengers wearing seatbelts, since 88% of them use these protective gears.

In a 2015 study from the National Highway Safety Administration, it was shown that 562 driving casualties occurred during the year. 111 of them (20%) had something to do with alcohol impaired driving.

This has led to NJ having an overall vehicle occupant death rate at 3.6 per 100,000 residents, as the CDC further reports.

Final thoughts

Driving without a New Jersey car insurance policy isn’t just against the state law; it also puts you at serious risk of financial disaster, especially when you cause an accident and injure people and/or cause property damage.

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licensed drivers in New Jersey, 2014
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privately insured vehicles in New Jersey

Source: StatistaInsurance Information Institute

1Methodology: To achieve accurate results we obtained estimates for 10 cities in the state: 5 of the largest cities and 5 randomly picked smaller cities. For each city, we collected premiums for 3 levels of coverage: state minimum coverage, basic full coverage and premium full coverage. We used 3 different driver profiles for the case studies. For the young driver profile we used a 20-year-old single male or female with 1 year driving experience. Second, the profile fit that of a 35-year-old married female with 12 years of driving experience. The last profile we used in our studies is a male senior driver who was 68-year-old with 45 years of driving experience. The vehicle we used for all three driver profiles was a 2012 Honda Accord EX.
2State minimum coverage includes the minimum liability insurance limits required in your state but excludes the following:
  • No Collision and Comprehensive Coverage
  • No Towing Coverage
  • No Rental Car Coverage
  • No Full Glass Coverage
3Basic full coverage includes:
  • $50,000 Bodily Injury Liability Per Person/$100,000 Per Accident
  • $25,000 Property Damage Liability
  • $50,000 Uninsured Motorist Bodily Injury Coverage Per Person/$100,000 Per Accident
  • $25,000 Uninsured Motorist Property Damage Coverage
  • $750 Deductible Collision And Comprehensive Coverage
  • $50 Towing Coverage
  • No Rental Reimbursement Coverage
  • No Full Glass Coverage
4Premium full coverage includes:
  • $250,000 Bodily Injury Liability Per Person / $500,000 Per Accident
  • $100,000 Property Damage Liability
  • $250,000 Uninsured Motorist Bodily Injury Coverage Per Person / $500,000 Per Accident
  • $100,000 Uninsured Motorist Property Damage Coverage
  • $250 Deductible Comprehensive Coverage And No Deductible Collision Coverage
  • $75 Towing Coverage
  • $30/day Rental Reimbursement, Max Of $900
  • Full Glass Coverage
5Latest data: The U.S. census is conducted every 10 years as per requirement of the United States Constitution. The 23rd edition and the latest data is the 2010 United States Census. Source: https://en.wikipedia.org/wiki/2010_United_States_Census
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