New Jersey Auto Insurance Requirements

In order to operate a motor vehicle in the state of New Jersey, drivers must carry auto insurance. The state offers two types of auto insurance policies: standard and basic.

Basic auto insurance is a low-cost policy option designed for those with few assets and/or family responsibilities. Included coverages meet just the minimum state requirements. Additional coverages, such as bodily injury liability, collision, and comprehensive are available. If you purchase this type of insurance, you may not be able to sue another driver for damages incurred in an accident.

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Standard auto insurance is a more extensive coverage option for those who have more to lose in the event of an auto accident. The coverages included in this type of auto insurance provide coverage above and beyond what is required by state law. Standard policy holders are required to carry uninsured and underinsured motorist coverage. In addition, you can purchase additional coverages, such as collision and comprehensive, for maximum protection.

The following tables outline the types of coverage included in each type of policy:

Standard Auto Insurance

Basic Auto Insurance

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Auto Insurance for Leased Vehicles in New Jersey (NJ)

Most leasing companies in New Jersey typically require drivers to maintain insurance coverage which exceeds the minimums set by New Jersey state law. This is to protect you financially, as well as your leasing company, should they be held partly responsible. Most leasing companies will recommend the following amounts of insurance coverage:

• Bodily injury liability coverage: $100,000 per person/$300,000 per accident
• Property damage liability coverage: $50,000
• Comprehensive and collision coverage: $750 maximum deductible

Read about special auto insurance considerations for drivers in:

• Newark

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**Auto Insurance Finder is not an insurance broker or carrier. Content on this site is for comparison and informational purposes only. The products and services listed on this site may not be available in all states.

Last Updated: August 19, 2010