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Purchasing Auto Insurance in New Jersey

When seeking automobile insurance New Jersey residents can take advantage of free tools offered by the state's Department of Banking and Insurance.

New Jersey's Basic Auto Insurance

The Auto Insurance Planner provides drivers with the information necessary to allow drivers to have educated conversation when talking to an insurance agent or broker. The planner gives drivers insights into how New Jersey automobile policies are underwritten and quoted. Read also: Vehicle Claims and Auto Insurance Estimates.

Determining Auto Liability Limits

In today's litigious society, a small claim can quickly mount. Whether the insured has significant assets or not, it is wise for drivers to purchase the highest limits they can afford.

That being said, the New Jersey Department of Insurance and Banking website recommends purchasing higher liability limits if the driver has a home, children or significant assets to protect. Those without such assets, are recommended to purchase the basic auto insurance policy.

New Jersey Basic Auto Policy

The basic policy offers a $5,000 property damage liability and $15,000 personal injury limit (personal injury covers the policy holder and those insured under the policy). Coverages such as bodily Injury liability (injury to a third party) and physical damage are not included. They are optional under the basic policy and can be added at the request of the insured. The basic auto policy was created as a low cost alternative to driving without insurance. Read also: What are the differences in auto insurance between states?

New Jersey Standard Auto Policy

For drivers with significant assets, the New Jersey Department of Insurance & Banking recommend purchasing a standard insurance policy. The standard auto policy provides Bodily Injury coverage (to the tune of $15,000 per person and an aggregate of $30,000 for all persons in an accident), $5,000 in property damage coverage and personal injury coverage of 250,000 per person (lower limits can be selected). Drivers can purchase physical damage coverage which provides reimbursement for vehicle repair in the event of a covered claim (subject to policy deductibles). With the standard auto policy, insureds can increase the liability limits to a maximum of $500,000.

Automobile Rates and Policy Savings

The Auto Planner takes the driver through several questions. Depending on the answers, the insured can realize an estimated premium savings anywhere from 0% to 20% or greater. Applicants can click the "Back" button to go back and change the coverages, limits and deductibles in order to realize a larger premium savings. Once satisfied with the coverages and premium savings, drivers can print the final report. Read also: How to Compare Auto Insurance Quotes.

Negotiating with Insurance Agents/Brokers

Before taking the report and discussing insurance coverages with agents or brokers, New Jersey drivers should download a free copy of the Auto Insurance Shopping Guide. The 24 page document provides valuable information for anyone seeking auto coverage in the state.

Armed with the Auto Shoppers Guide and the printed report, drivers can knowledgeably begin to negotiate auto insurance coverage.


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