Insurance New Jersey: A Guide to Auto & Home Coverage
Why You Can Trust EverQuote
EverQuote powers millions of shopper requests every month, teaming up with industry-leading insurance specialists to address real-world challenges faced by people every day. We partner with the largest insurance providers in the nation, and our content is carefully crafted by experts and reviewed by licensed insurance agents for accuracy and relevance.
Understanding the ins and outs of insurance in New Jersey — especially auto and home insurance — is vital to protecting two of your biggest assets. You want to make sure you get the coverage amount you need, remain within the bounds of state laws, and don't break your budget with the premiums.
Below, we help guide you through the nuances of New Jersey insurance so you can make an informed purchasing decision.
Understanding New Jersey's Auto Insurance Requirements
All drivers must carry at least basic auto insurance in New Jersey to drive in the state legally. This relatively thin coverage protects other drivers and property when you cause an accident.
The minimum requirements of basic insurance plans in New Jersey are:
- $5,000 in personal damage liability coverage per accident
- $15,000 in personal injury protection per person per accident (including up to $250,000 in coverage for certain permanent injuries)
On top of these minimums, a basic policy must offer two optional coverages:
- Collision coverage: For damage to your vehicle, regardless of who was at fault for the collision involving another car or object
- Comprehensive coverage: For your vehicle in a loss not involving a collision, such as theft or flooding
Review the insurance requirements of your state:
Basic vs. Standard Auto Insurance Policies in New Jersey
The basic coverage mentioned above is the bare minimum the state requires. However, New Jersey also requires insurance companies to offer a “standard policy” with slightly higher coverages than the basic policy.
This insurance coverage adds the following coverages to the basic policy:
- $25,000 to $250,000 in bodily injury liability coverage for a single injured person per accident
- $50,000 to $500,000 in bodily injury liability coverage total for two or more injured people per accident
- $15,000 to $250,000 in personal injury protection coverage
- At least $25,000 in property damage liability coverage per accident
On top of the mandated coverages, a standard policy must also offer optional underinsured/uninsured motorist coverage
Home Insurance in New Jersey: Protecting Against Floods and Coastal Risks
Living in a coastal state like New Jersey means your home is subject to a range of potentially damaging extreme weather events. These range from severe winter storms and thunderstorms to hurricanes and even flooding.
Most insurance companies in New Jersey offer standard policies that list specific perils they cover, such as wind damage and snow-damaged roofs.
These policies also often include:
- Additional living expenses: This covers the cost of alternative housing while your home is being repaired after a covered event.
- Personal liability: This coverage protects you from financial liability due to others asserting they were injured or their property was damaged by something you did or failed to do on your property.
- Medical payments: This pays any covered medical expenses when others are accidentally injured on your property, regardless of fault.
Living in a coastal state, you want to pay close attention to exclusions in your policy. For example, most homeowners insurance policies don’t cover flood damage in New Jersey. To cover this, you must purchase optional coverage.
Homeowners Insurance Requirements in New Jersey
New Jersey doesn’t mandate homeowners insurance, so no laws outline minimum requirements. However, your mortgage company will likely require it to protect its collateral (your home).
Contact your mortgage company to learn more about its minimum insurance requirements before purchasing a policy.
How To Compare Insurance Policies in New Jersey
You should compare several policies before purchasing auto or homeowners insurance in New Jersey. Some factors to consider while comparing are:
- Coverage limits and exclusions
- Deductibles and premiums
- Insurer's customer service reputation
- Cost of optional coverage
Understanding New Jersey-Specific Insurance Regulations
New Jersey’s Department of Banking and Insurance regulates the state's home and auto insurance markets. This ensures insurance companies offer the coverage you need in the state and service their policies fairly.
The department also updates laws and regulations to align with changing times, so check the state's Department of Banking and Insurance website regularly for updates.
How To Find Affordable Insurance in New Jersey
Auto and homeowners insurance are must-haves in New Jersey, but you want to get fair insurance rates for the necessary coverage. Some tips to help you find affordable New Jersey insurance are:
- Bundle policies, such as home and auto insurance, for potential discounts
- Maintain a clean driving record and credit history
- Ask about possible discounts, such as those for certain memberships or safety devices in your car and home
- Compare multiple insurance quotes
Get the Best Car Insurance Coverage in New Jersey Today
Balancing the coverage you need and the cost of your insurance premiums is a great way to protect your assets while keeping your monthly budget in check.
EverQuote helps you secure cheap auto insurance in New Jersey with its online comparison tool that lets you compare multiple auto insurance quotes in one place.